Tue, Dec 13, 2011 - Page 12 News List

Compal Electronics continues to see its momentum weaken

By Jason Tan  /  Staff Reporter

Compal Electronics Inc (仁寶電腦), the world’s second-largest laptop PC contract maker, continued to see weaker momentum as it posted consolidated sales of NT$59.78 billion (US$2 billion) last month, down 18 percent from last year.

The figure was up 0.5 percent from a month ago.

Compal’s total revenue from January to last month was NT$639.51 billion, down 22.3 percent from last year.

The drop in this year’s sales was attributed to a major client cutting notebook shipments, as well as the cannibalization of netbooks by tablet PCs, a company investor relations official said.

Acer Inc (宏碁) placed fewer orders with Compal this year as the former lost market share amid company restructuring.

With the overall netbook market seeing a decline in shipments this year, Compal — which was highly exposed to the netbook segment last year — saw total sales drop substantially this year, the official added.

The floods in Thailand during the fourth quarter also took a toll on the maker’s shipments and the company is “reserved” about its prospects into the first quarter of next year, she added.

Compal shipped 3 million units of notebook PCs last month, down from 3.2 million in the previous month.

Total shipments for the year look set to hit in the lower range of the 40 million to 42 million units that it targeted in October.

The maker vowed to ship as many as 48 million units of portable PCs at the beginning of the year.

With Compal forming a joint venture with China’s PC giant Lenovo Group Ltd (聯想) next year, other branded clients decided to place fewer orders with Compal on concerns about the alliance, said Cheng Kai-ming (鄭開明), an analyst with Horizon Securities (宏遠證券).

However, Lenovo is set to usher in robust PC momentum next year thanks to booming domestic demand and the alliance should be able to compensate for Compal’s loss of other orders, he added.

Separately, Acer Inc (宏碁), the world’s No. 4 PC brand, yesterday posted sales of NT$35.76 billion last month, down 12.18 percent from the same month last year.

Total revenue for the first 11 months of the year plunged 23.52 percent to NT$372.68 billion, according to a filing to the Taiwan Stock Exchange.

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