Samsung estimates ASP based on yield rates for Taiwan handset component makers

Erica Yen, Taipei; Steve Shen, DIGITIMES [Friday 3 August 2012]

Samsung Electronics is very familiar with manufacturing processes for handset components and thus for orders released to Taiwan-based makers, usually estimates ASPs based on its expected yield rates on various products, according to Taiwan-based makers.

While orders from Samsung will help ramp up capacity utilization rates, Taiwan-based component makers may suffer losses if they are unable to reach yield rates as high as Samsung has estimated, the sources said

Due to higher than expected sales of its Galaxy S lineup, Samsung has been releasing more orders for camera modules, handset chassis and other components to Taiwan makers, the sources indicated.

Samsung shipped 52.1 million smartphones in the second quarter of 2012, accounting for nearly 40% of the global smartphone market, enabling Samsung to leverage its purchasing volumes during price negotiations, the sources commented.

In comparison, Apple and Nokia shipped 26 million and 10.2 million smartphones, respectively, in the second quarter.