Business

Published: 13 May 2009 22:45:15 PST

Top 5 News From ChinaKnowledge.comBank of China grants US$2.93-bln loan to COSCO Container LinesBeijing Capital Land sees sales revenue skyrocket 200%Hang Seng Index opens 429 points lower on ThuGM likely to import 17,335 China-made cars in 2011JPMorgan buys 7.15 mln H-shares in China Oilfield Services

May 14, 2009 (China Knowledge) – Compal Electronics Inc shipped more notebooks than Quanta Computer in April and became the world’s top contract maker of laptops in terms of shipment volume, sources reported.

In April, Compal Electronics shipped 2.7 million notebooks, whereas Quanta shipped 2.3 million notebooks.

Compal Electronics explained that shipments of small, light netbook computers are up, adding that notebook orders from North American clients positively impacted its notebook shipment volume.

Although Quanta shipped fewer notebooks than Compal Electronics in April, it is still the world’s largest contract maker of laptops in terms of revenue. During April, Quanta’s revenue was about NT$5.52 billion, down 25% year on year, whereas Compal Electronics earned revenue of NT$4.38 billion, 43.7% more than in the previous year.

Compal Electronics forecasts a growth of notebook shipment in the second quarter of this year. It adjusted its target for Q2 from the previous 15% to a range of between 15% and 20%.

Meanwhile, demand for notebooks is rising, and a component shortage is emerging, especially for LCD screens, said Ray Chen, president of Compal Electronics, adding that prices for these items are rising.

Chen estimates that the company’s gross profit margin in Q2 will be on a level with Q1 performance, and that the second half of 2009 will be flat from Q2, explaining that the company has the capability to manage costs efficiently.

The company holds high expectations for Windows 7, the upcoming version of the Microsoft Windows operating system (OS). Compal Electronics said that the new OS will boost notebook shipments in the fourth quarter of this year, and that the company’s global notebook and netbook PC shipments will reach 145 million to 150 million units in 2009.


Copyright