Notebook shipments set to soar, MIC says

Shipments of notebook computers from local contract makers are set to increase by 30 percent this year, thanks to the rollout of new technology that is expected to propel replacement demand, research firm Market Intelligence Center (MIC, 資訊市場情報中心) said.

Of the around 90 million notebook computers expected to be sold worldwide this year, 83 million are likely to have been made by Taiwanese firms, up 30 percent from last year, MIC said in a report released last week.

Fueled by the introduction of new technology by Microsoft Corp and Intel Corp, the total output value of Taiwan's notebook computer manufacturing industry should grow 24 percent to hit US$45.68 billion, it said.

"Most purchases will be made during the second half of the year," MIC analyst Albert Chen (陳立恆) wrote in the report.

The brisk outlook for the second half of the year could be attributed to the delayed effect of the launch of Microsoft's new Windows Vista operating system last month, as well as the debut of Intel's Santa Rosa platform late in the second quarter, he said.

The outlook for the current quarter also looks strong, with local manufacturers set to produce 17.44 million notebook computers, which is 32.8 percent more than in the same period last year, as Vista is expected to attract gamers and power users, MIC said.

However, shipments are likely to show a quarterly decline of 12.2 percent, as brand makers such as Hewlett-Packard Co and Toshiba Corp had requested increased stock volumes in the fourth quarter of last year to cope with demand in the current quarter, it said.

The strong shipment figures throughout the year are likely to cement Taiwanese computer makers' leadership on the world map. Quanta Computer Inc (廣達電腦), the world's largest contract notebook maker, is setting its sights on shipping 25 million units this year, up 30 percent from more than 19 million units last year.

Smaller rival Compal Electronics Inc (仁寶電腦) said its shipments would expand at least 37 percent to more than 20 million units, from 14.6 million notebook computers produced last year.

MIC said that local computer makers demonstrated solid results in the fourth quarter last year by churning out 19.86 million units. This represents year-on-year growth of 30.6 percent and a quarterly rise of 17.8 percent.

Output value in the last quarter rose 25.3 percent from a year earlier to US$11.44 billion, but average selling prices fell slightly to US$576 per machine compared with the same period in the previous year, the Taipei-based research firm said.