Wed, Jan 12, 2011 - Page 12 News List

Prices of notebook production set to increase: Compal

Staff writer, with CNA

Compal Electronics Inc (仁寶電腦), one of the nation’s leading notebook computer ODM service providers, yesterday said it expects contract production prices to increase beginning in the first half of this year.

Compal said the hikes would reflect the rising prices of raw materials, such as copper and plastics, while a surging New Taiwan dollar would also put upward pressure on ODM service prices.

Last week, the NT dollar rose above the NT$30.00 mark against the US dollar for the first time since October 1997. The local currency has risen 7.48 percent since the end of August last year.

Compal said many makers of components and accessories for notebook computers — such as cases, connectors, power supplies and printed circuit boards — have already raised their prices.

Consequently, notebook computer ODM service providers would have to increase prices to cushion the impact of higher operating costs, Compal said.

The comments came after local media, citing foreign brokerages, yesterday said local firm Quanta Computer Inc (廣達電腦), the world’s largest notebook ODM service provider, had reached an agreement with Hewlett-Packard Co (HP) to raise prices for the contact production of several models of notebook computers.

The reports said the price hike is expected to cover between 70 and 80 percent of Quanta’s increased operating costs and would boost the firm’s gross margin.

Since HP is also a client of local firms Hon Hai Precision Industry Co (鴻海精密) and Inventec Corp (英業達), the market was watching closely to see whether the two companies reach their own agreements on price increases, the reports said.

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