Compal’s future looking bright

February 1, 2016

Ray Chen, chairman of Taiwan-based Compal Communications, expects handset shipments for his company to reach 60 million units in 2016, a 20-25% growth compared to 2015.

Compal’s shipments of handsets in 2015 took a sharp fall to 47.8 million. This was due to a relatively poor performance by Compal’s major customer, Motorola.

Motorola is currently experiencing an organizational reshuffle, after which Compal expects its operations to rebound. Compal also expects an increase in average selling price between the second and third quarters.

Compal’s lack of orders have delayed the company in beginning operations at the new plant in Ningbo, China. Chen commented that official operations in the plant will begin in the second half of this year.

The company has also been forming a second business with a focus on GPS and 3G smartphones. These will be available from the company by the fourth quarter; annual shipment targets for smartphones are set at just one million units.

Chen noted that although much of the communications industry is pessimistic over the global economy, Compal is holding a bright outlook. He added that some of the company’s customers are even increasing orders or ordering in advance due to the situation.