Simplo Technology Co (新普科技), the world’s largest maker of laptop batteries, said a global shortage of power cells will last three months longer than anticipated as producers fail to boost output fast enough.
Supply may catch up with demand in the second quarter of next year, chief financial officer Jackie Ding (丁惠敏) said in an interview at Simplo’s Hsinchu headquarters on Tuesday.
A month ago, the company had expected the shortage to end by the first quarter of next year, she said.
Compal Electronics Inc (仁寶電腦), the world’s second-largest maker of laptops, has blamed the shortfall of batteries for crimping notebook-computer sales.
Simplo, which assembles cells into battery packs for Hewlett-Packard Co and Dell Inc, fell 15 percent in the two weeks to Aug. 21 in Taipei trading on concern oversupply would erode earnings, Deutsche Bank AG said.
“Batteries are key for overall notebook shipments,” said Tina Chang, who rates Simplo “buy” at Merrill Lynch & Co in Taipei. “In the first half of this year notebook constraints could be seen because of the battery shortage.”
Ding said on Aug. 26 that supply fell short of demand by 10 percent in the second quarter. Compal said on March 5 the battery shortage would hamper shipments during the first half of the year.
Fires at Seoul-based LG Chem Ltd in March and a Matsushita Electric Industrial Co factory last October prompted competitors such as Sanyo Electric Co to boost production to meet demand.
Plans by Sanyo and Matsushita to boost investment in battery cell production won’t raise supply until next year or 2010, Ding said. Matsushita, which sells its products under the Panasonic brand, will spend ¥100 billion (US$927 million) to triple laptop battery capacity, the Yomiuri Shimbun reported on July 17.
“All those cell players, what they do is control the market,” Ding said. “If it’s in an oversupply status, then the oversupply will hurt them, while for us it will be an advantage.”
Ding reiterated the company’s Aug. 26 forecast that sales this quarter would rise 38 percent from the second quarter to as much as NT$8.4 billion (US$266 million).
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