Compal Electronics Inc (仁寶電腦), the world's second-largest maker of notebook computers, may say that first-quarter profit rose by more than half, helped by increased sales of higher-margin cellphones.
Net income was probably NT$2.2 billion (US$63 million), compared with NT$1.4 billion a year ago, analysts said. Sales, posted earlier in monthly reports, rose by more than a quarter to NT$30.5 billion from NT$24.2 billion.
Compal, which sells laptop PCs to Hewlett-Packard Co, Dell Computer Corp and smaller rivals, said earlier it would more than triple production of mobile phones this year to 10 million from 3 million to help shore up declining profit in the laptop business.
"The contribution to Compal's sales from handsets is much greater than last year," said Steven Tseng, an analyst with Yuanta Core Pacific Securities Co (
The company's gross margin, or the percentage of sales after production costs, for notebook PCs is about 9 percent compared with 15 percent for cellphones, Tseng said.
Compal, which plans to reports results this week, probably achieved its February forecast of a first-quarter gross margin "slightly better" than the fourth-quarter's 9.2 percent, last year's highest, analysts said.
Apple Computer Inc became a new customer in the first quarter, which helped the Taiwan company improve its average selling price for notebook PCs, analysts said.
Compal has forecast notebook PC production will rise by a quarter to 5 million units this year.
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