Wed, Jan 20, 2010 - Page 11 News List

Quanta has iPhone-style computer in the pipeline

‘I DON’T NEED THEM‘ Quanta chairman Barry Lam said he had no intention of entering talks anytime soon with Hon Hai on the possibility of mergers or joint ventures

By Tim Culpan  /  BLOOMBERG

Quanta Computer Inc (廣達電腦), the world’s second-largest maker of laptops by shipments, is developing an iPhone-style computer and seeks more strategic investments following a record profit last year, chairman Barry Lam (林百里) said.

“We are looking for joint ventures with some companies that are already successful in the market — if they need some financial investment — as a strategic partner,” the 60-year-old founder of the Taoyuan-based company said in an interview on Monday.

He declined to name targets.

The company is also planning to make “a computer in an iPhone form factor” to meet demand for connectable devices.

Quanta, which supplies Apple Inc and Hewlett-Packard Co, dropped to second place by shipments last year after Taipei-based rival Compal Electronics Inc (仁寶電腦) sold more low-cost notebooks amid the global recession.

Shipments this year would surpass an earlier forecast for 40 percent growth after feedback at consumer electronics shows in Las Vegas this month showed demand was very strong, Lam said.

Chongqing will be the site of a third production base as the company continues capacity expansion to meet demand, Quanta said in an exchange filing yesterday.

Quanta shipped 35.9 million laptops last year, while Compal sold 37.9 million units, according to data from the companies. Quanta gets about 75 percent of its revenue from notebook sales.

“We made a very good profit, a record high profit last year,” Lam said, declining to provide details because the data has not been released. “I look forward to another good year for notebooks.”

Cloud computing, where information and computing power are delivered over the Internet, will form the basis of Quanta’s future growth, spurring the company to develop a smaller mobile device, Lam said in the interview.

“We call it a handheld computer with an iPhone-size display and form factor,” he said.

The device, which has yet to be manufactured or find clients, will feature a 3.5-inch touch-screen display, voice calling and wireless Internet functionality, Lam said.

He denied Quanta is a supplier of Apple’s iPhone or tablet computer.

ARM Holdings Plc and Qualcomm Inc are among companies that will supply chips for the device, he said, without providing further information on the product.

Meanwhile, Quanta was not in talks for mergers or ventures with Hon Hai Precision Industry Co (鴻海精密), Lam said. Hon Hai is planning to buy Quanta’s laptop unit, the Chinese-language United Evening News reported on Dec. 7, without saying where it got the information.

“I don’t want to talk to Hon Hai for 10 years,” Lam said. “I am still making notebooks, I am still in manufacturing, I don’t need them.”

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