The nation's portable computer makers could experience an uninspiring third quarter due to the lack of a killer application that could spur consumer demand.
In the absence of a "killer app," demand may be sluggish without steep price cuts for laptops, analysts said yesterday.
"Unlike last year, when the Centrino platform for wireless networking was launched, there is no killer application to stimulate consumer demand in the quarter ahead," said Steven Tseng (
The Olympic Games, which will take place in August, could divert consumer spending to other consumer electronics products like liquid-crystal-display television sets or digital video disk players/recorders -- which is not good news for the personal computer sector, he said.
Price cuts for laptops would require a larger-than-expected price reduction in flat panels, Tseng said.
Compared with notebook makers' optimistic projections of up to a 30 percent increase in third-quarter shipments over the previous quarter, institutional investors are generally making conservative estimates of around 15 percent growth quarter-on-quarter.
The bellwether laptop maker Quanta Computer Co Inc (
Aggregate sales from January through June grew 11.98 percent year-on-year to NT$135.05 billion, according to figures by Quanta.
The company, which expected to ship up to 11 million notebooks this year, remained bullish about its shipments for the third quarter, projecting growth of up to 30 percent over the second quarter.
Quanta's smaller rival Compal Electronics Inc (仁寶) last week posted a record-high revenue of NT$19.92 billion for last month, showing a gain of 30.8 percent over the previous month and an increase of 121.1 over a year before. The company reported sales for the first half of the year of NT$92.09 billion, representing year-on-year growth of 49.7 percent.
Compal, which hopes to produce 8 million laptops this year, projected shipments of over 2 million for this quarter compared to 1.68 million units shipped in the second quarter.
"We think laptop makers may be too upbeat about their future performance," said Frank Chi (紀鈞中), a portable computer analyst at Grand Cathay Securities Co (大華證券).
The market could remain flat this month and may not heat up until after the middle of next month, when it should get help from back-to-school demand in the US and European countries, Chi said.
Institutional investors estimate that Quanta and Compal, the world's two biggest notebook makers, would see respective growth rates of 19 percent and 20 percent over the second quarter, Chi said.
Quanta and Compal are rated neutral by Grand Cathay.
Quanta shares closed at NT$66.50 on the TAIEX yesterday after a drop of 1.48 percent. Compal shares dropped 0.85 percent to close at NT$34.80.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s