Telefonica sale of O2 Asia Pacific to MWG unlikely to affect supply chain in Taiwan, say sources

Daniel Shen, Taipei; Steve Shen, DIGITIMES [Friday 2 November 2007]

The Telefonica Group's planned sale of 02 Asia Pacific to Mobile and Wireless Group (MWG) is unlikely to result in a significant change in the supply chain of O2 Asia Pacific in Taiwan since MWG has decided to continue operating O2 Asia's handset business, according to sources from Taiwan's handset industry.

MWG, utilizing the original management team from O2 Asia, will continue developing Microsoft Windows Mobile-based smartphones, and the company will market the new smartphones, starting in 2008, under a new brand, the sources indicated.

Under the request of O2 Asia, the company's contract makers in Taiwan, including Quanta Computer, Asustek Computer, Gigabyte Communications and Arima Communications, stopped shipping new models to the handset vendor from the third quarter of this year, the sources noted.