Motorola Mobility has been strengthening its ties with Taiwan-based handset ODMs and parts and components suppliers with procurements from those production partners to increase 10% sequentially in the second half of 2011 and to further expand by 10-15% in 2012, according to sources in the supply chain.

Motorola's increased orders to Taiwan production partners reflect a steady integration process between Google and Motorola as well as the vendor's stepped-up efforts to launch new models, including the Razr XT910 flagship model, the high-end Milestone 3, the DEFY+ social networking phone and the entry-level XT319, in the fourth quarter of 2011, revealed the sources.

Motorola's ODM handset orders to Taiwan production partners are expected to total 11-13 million units in 2011, of which over 90% are feature phones, estimated the sources, noting that Taiwan ODMs may receive more orders for smartphones from the vendor in 2012.

Motorola's ODM partners include Arima Communications, Compal Communications and Foxconn International Holdings (FIH), while parts and components suppliers include Merry Electronics and Chi Cheng Enterprise.

Merry has reported consolidated revenues of NT$880 million (US$29.1 million) for November, increasing 25.47% on month and 9.67% on year and representing the highest monthly figures in 47 months, according to a company filing with the Taiwan Stock Exchange (TSE).

Source:digitimes