Hon Hai may report rise in profits

The average price for a notebook dropped 12 percent to US$1,325 from US$1,500, according to the research firm.

"PC-related products are still Hon Hai's main source of revenue, which is an ultra-competitive sector," Shiao said.

PC unit shipments will increase 12.7 percent in 2005 as lower prices and enhanced wireless Internet hookups are driving demand, according to Gartner. Worldwide PC revenue is expected to rise 0.5 percent this year.

Hon Hai may book a one-time profit from disposing of shares in its mobile-phone arm, Foxconn International Holdings Ltd (富士康). Foxconn raised US$433 million in its Hong Kong initial public offering in January and counts Nokia Oyj and Motorola as its top two clients.