Sat, Jun 15, 2013 - Page 13 News List

Wistron seeks to diversify to beat PC sector slump

By Helen Ku  /  Staff reporter

Wistron Corp (緯創), the world’s third-biggest contract laptop computer maker, yesterday said it plans to diversify its product portfolio amid a continued slump in the global PC market.

The company is to add medical equipment into its product mix and aims to accelerate its business transformation process to enhance profitability, chairman Simon Lin (林憲銘) said.

“In response to slowing growth in consumer electronics shipments, Wistron aims to move more quickly in integrating resources,” Lin told the company’s annual shareholders’ meeting in Taipei yesterday.

“We need to speed up production of value-added items to generate higher margins,” he added.

Wistron plans to manufacture a string of new medical products, including human body condition assessment tools, and aims to develop new medical peripherals and components. The company is also to look at merger and acquisition opportunities to secure advanced technologies for new product development, Lin said.

“Taiwan is talent-rich in the technology and medical fields, and integration between different business sectors is not only feasible, more importantly it is beneficial to society,” he added.

Wistron has recently developed virus detection equipment that can identify whether a person has liver disease or carries the human papilloma virus (HPV).

The firm has also targeted other companies for the potential joint development of new products, he added.

Meanwhile, shareholders yesterday approved the company’s plan to distribute a NT$1.5 cash dividend and a NT$0.5 stock dividend per common share on last year’s earnings of NT$6.7 billion (US$223.9 million), or NT$3.06 per share.

Wistron also produces tablets, LCD displays, smartphones and servers and the company’s sales are expected to continue growing this year, Lin said.

“Wistron will continue to decrease its proportion of laptops to less than 50 percent of total shipments,” he said, adding that the company remains optimistic toward its non-notebook products.

While Ultrabooks remain attractive to consumers, convertible laptops are expected to become Wistron’s new sales driver in the second half of the year, he added.

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