Taiwan's notebook computer shipments to increase 22 per cent

May 11, 2008, 21:55 GMT

Taipei - Taiwan's notebook computer manufacturers are expected to ship 22 per cent more laptops this year, thanks to strong demand from emerging markets and continued replacement of desktop computers with the smaller, mobile models, a newspaper said on Monday.

Taiwan's contract manufacturers, who supply laptops to the world's major computer brands like Hewlett Packard and Dell, may ship 110 million notebook computers in 2008, up from 2007's 90 million units, the Taipei Times quoted the Market Intelligence Centre (MIC) as saying.

This forecast does not include Taiwan's output of low-cost laptops, MIC said.

'Constant desktop replacement demand and new consumer demand in emerging markets like China are major drivers,' the English-language daily quoted MIC analyst Nicole Huang as saying.

Taiwan's two biggest notebook computer contract makers, Quanta and Compal Electronics Co, recently said their shipments would expand to a combined 72 million units in 2008, the Taipei Times said.

Wistron Co, Taiwan's third-largest contract maker, plans to ship 20 million units in 2008, with demand mainly coming from Asia and Europe.

The average selling prices are expected to recover from the second quarter to the fourth quarter in 2008, Huang said.

In the first quarter, average selling prices dropped to 512 US dollars per unit from 553 US dollars a year ago, MIC tallies showed.

Huang attributed rising average selling prices to rising labor costs in China, which serves as a manufacturing base for many Taiwan computer companies, and higher component costs caused by hikes in global commodity prices.

She also said the Taiwan dollar's appreciation against the US dollar has put Taiwan manufacturers under greater pressure.

'Local laptop contract makers are discussing price hikes with their customers, which is unavoidable,' Huang said.

Compal, which supplies laptops to Dell and other major personal computer vendors, said earlier this month that it was consulting with customers to raise prices to reflect rising costs. The price hike would be Compal's first in its history.

Labor costs in China has increased 25 per cent in 2008 after new labor rules took effect and copper prices rose 80 percent year-on- year, Compal said.

In the first three months of 2008, Taiwanese laptop contract makers shipped 25 million laptops, up 35 per cent year-on-year, as robust demand in developing countries has partly offset the weak demand in the US stemming from a weakening economy, MIC said.

Total revenues generated by Taiwan manufacturers grew 26.9 per cent year-on-year to 13 billion US dollars in the first quarter as personal computer vendors launched new high-end models, the Taipei Times quoted MIC as saying.