Sat, Jun 16, 2007 - Page 12 News List

Quanta raises shipments target on better-than-expected first half

By Jason Tan  /  STAFF REPORTER

Quanta Computer Inc (廣達電腦), the world's largest contract maker of notebook computers, yesterday announced a new shipment target after seeing strong momentum during the first six months.

Company president Michael Wang (王震華) told a shareholders' meeting yesterday that total volumes of portable computers produced this year should exceed the firm's previous target of 25 million units and may even hit 28 million.

Quanta said in April that its laptop shipments for the whole year would total more than 25 million units, up from last year's 19 million units.

shipping more

The company already shipped 4.6 million portable computers in April and last month, therefore second-quarter volumes should hit 7 million, Wang said. Its first quarter shipments were 6.2 million units.

With the achievement of its shipment goal for the first half, Quanta is looking forward to a greater momentum in the traditionally busy second half, Wang said.

Though the introduction of new notebook models will increase average selling prices, it is still hard to maintain profit margins due to the industry's competitive nature, he said.

What Quanta will do is to standardize design procedures, and lower costs by boosting economies of scale, which will hopefully improve profitability, he added.

potential

Wang would not confirm whether the firm has obtained orders for Apple Inc's iPhones, but said it will not miss out on the potential of the personal-digital-assistant (PDA) phone market.

Quanta's shareholders yesterday approved a NT$2.50 (US$0.08) cash dividend and 2 percent stock dividend for last year.

Rival Compal Electronics Inc (仁寶電腦) approved a cash dividend of NT$1.70 and a 0.5 percent stock dividend yesterday.

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