Compal Communications, affected by the slow performance of major customer, Motorola, has recently decreased its annual handset shipment forecast to 50 million units for 2007, down from the original forecast of 75 million units made at the beginning of the year, according to the company.

The company explained that as Motorola is continuing to adjust inventory, and order visibility for the fourth quarter is still below expectations, the annual shipment forecast for the year will reduce by 33%.

Compal reported sales totaled NT$3.824 billion (US$115.6 million) in August, up 9% on month but down 39% on year, the company said.

The company shipped 25.3 million handsets in the first half of 2007. Accumulated shipments for the first nine months are expected to reach 36.3 million units. Due to slow orders, the company recently decided to revise its shipments forecast. After the adjustment, quarterly shipments of Compal in the fourth quarter are expected to only reach 13.7 million units, compared to previous estimates of 19 million units, noted the company.

Sources noted that Compal will start shipping W-series products including the W360, W218, W208, W395 and W380 to Motorola in the third quarter.