Sat, Nov 13, 2004 - Page 10 News List

Analysts divided about notebook makers' margins

PROFITS The decline in manufacturers' profit margins could ease up as they move their production bases to China, which may help drive down costs

By Amber Chung  /  STAFF REPORTER

Inventec, reporting an average margin of 4.99 percent for the first three quarters of this year, is undertaking massive expansion in Shanghai's Pudong area to boost its monthly capacity to 1 million laptops next year from its current 300,000 units, Yang said.

This could make Inventec "another price destroyer, as the company would also slash prices to strive for more new orders from global vendors," Yang said.

Inventec is expected to ship 4.5 million notebooks next year, up from around 2.8 million this year after the expansion finalizes in the middle of next year. Quanta said it aims to ship 16 million units next year, up from 11 million units this year, while Compal set a target of delivering around 10 million laptops next year from 7.5 million units this year.

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