Shares in Quanta Computer Inc (廣達電腦), the world's biggest contract laptop computer maker, jumped almost 2 percent yesterday, thanks to a report about a possible strategic alliance with local handheld-device maker E-Ten Information Systems Co (倚天資訊).
Shares of Quanta Computer increased 1.98 percent to close at NT$56.6 on the Taiwan Stock Exchange, while E-Ten Information soared by nearly the 7 percent daily limit to NT$30.05.
The collaboration would help Quanta Computer escape the doldrums in its new mobile phone business, analysts said.
"The alliance will help Quanta lure more orders and boost its margins for the handset area after enhancing its technological capabilities with the help of E-Ten," said Lu Chia-lin (
E-Ten Information is the second Taiwanese company, after High Tech Computer Corp (宏達電), to launch handsets equipped with an operating system from Microsoft Corp.
The cooperation would deepen the ties between the two companies. Quanta Computer said in late January that it planned to buy 40 percent of global positioning system (GPS) component maker Royaltek Co (鼎天), which is 30 percent owned by E-Ten Information.
Quanta Computer has been struggling to expand its mobile phone business, Lu said.
The company supplies mobile phones to UK mobile operator O2 Ltd and personal digital assistants (PDA) to Hewlett-Packard Co.
But its handset division accounted for less than 5 percent of total sales last year.
Quanta Computer is expected to sell 5 million phones this year, up from 3 million units last year, Lu said.
"Working with E-Ten will be a great help to Quanta as it now seems Quanta will follow in High Tech Computer's footsteps in selling high-margin smartphones by working with European operators," Lu said.
He said, however, that he did not expect the alliance to pose an immediate threat to High Tech Computer's industry leadership.
Both Quanta Computer and E-Ten Information downplayed the possible partnership yesterday.
"The company will not rule out any possible cooperation," said Quanta Computer spokesman Tim Lee (
The newspaper said an alliance might be announced as early as next week.
Lee refused to comment on the newspaper report, citing corporate confidentiality.
E-Ten Information spokesperson Abby Lee (
"We'll do anything good for the company in the long run," she said in a telephone interview with the Taipei Times.
"Merger and acquisition would be a short cut and a must for Quanta to boost its handset division, especially in terms of strengthening its technological capabilities," said Moly Lin (林美如) of Polaris Securities Co (寶來證券).
E-Ten Information would help Quanta Computer improve its technologies abilities in the communications area, Lin said.
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