Major Taiwanese contract PC makers expect business to rebound this quarter, after sales dropped last quarter by double-digit percentages during the slow season.
“With the strong demand for the new Zenfone 2 smartphone, we expect our sales this quarter to increase from last quarter,” Asustek Computer Inc (華碩) spokesman David Chang (張偉明) told the Taipei Times yesterday, without offering a sales estimate.
The company’s consolidated sales fell 18.9 percent from the previous quarter to NT$111.89 billion (US$3.58 billion) last quarter, which Asustek attributed to seasonal factors, but the firm said the softness would not extend to this quarter.
Chang also said Asustek did not suffer from foreign-exchange losses last quarter because it had taken measures to limit its exposure to currency volatility in emerging markets.
The company booked massive foreign-exchange losses of NT$713 million in the final quarter of last year, due to the depreciation of the ruble against the US dollar. The losses eroded its gross margin by 1 percentage point to 12.6 percent in that quarter.
Compal Electronics Co (仁寶電腦) saw its sales last quarter fall 19.55 percent from the previous quarter to NT$198.3 billion, but the figure grew 16.9 percent from the previous year.
“The strong annual growth was mainly driven by double-digit percentage shipment growth of smart devices, and we expect the strong momentum to continue this quarter,” Compal spokesperson Tina Chang (張妍婷) said by telephone.
The company expects sales of notebook and non-notebook products, including smartphones, tablets and TVs, to grow by double-digit percentages this quarter, she said.
Compal shipped 9.3 million notebooks last quarter, up 5 percent from the previous quarter and accounting for 75 percent of the firm’s total revenues last quarter, she added.
Sales at Inventec Corp (英業達) last quarter plunged 20.79 percent to NT$89.3 billion from the previous quarter’s NT$112.74 billion, 23.47 percent lower than the previous year.
However, the company expects growing shipments of PC-related products from new clients to drive up this quarter’s sales.
“In addition to the strong demand for servers and mobile devices, we expect PC shipments this quarter to increase significantly from last quarter,” Inventec chief financial officer Yu Chin-pao (游進寶) said.
Inventec shipped 3.55 million PCs last quarter and the company expects the shipments to jump 40 percent to 4.97 million units this quarter, Yu said.
Compal shares climbed 0.76 percent to NT$26 yesterday in Taipei trading, while Asustek shares rose 0.63 percent to NT$319 and Inventec stock dropped 0.2 percent to NT$21.7.
STEPPING UP: The firm has also asked employees to work in split shifts from this week and to halt all but essential overseas business travel from next month Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has implemented a remote work policy for employees not on production lines in an attempt to curb the spread of COVID-19, the world’s largest contract chipmaker said yesterday. This is the first time in the Hsinchu-based company’s history that it has launched a large-scale remote work policy, joining global technology companies, such as Apple Inc and Google, that encourage employees to work from home. The chipmaker has also asked employees to work in split shifts from this week, it said. As the number of virus infections continues to climb worldwide, TSMC has urged employees to halt unnecessary
Manufacturers are on a mission to produce desperately needed medical ventilators for the COVID-19 pandemic, even if it means converting assembly lines now making auto parts. Along with a shortage of masks and gloves, the spread of COVID-19 to almost every corner of the globe has highlighted a great need for specialized machines that help keep severely afflicted patients alive. “As the global pandemic evolves, there is unprecedented demand for medical equipment, including ventilators,” GE Healthcare chief executive officer Kieran Murphy said. The group has hired more workers and is making ventilators around the clock. Swedish group Getinge AB is also ramping up output
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
UPGRADE AND TRANSFORM: Although the cross-strait trade deal might remain, the Ministry of Economic Affairs said businesses should prepare for any disruptions Taiwan might face a decline in foreign trade with China if the cross-strait Economic Cooperation Framework Agreement (ECFA) ends this year, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. The agreement, which was signed and put into effect in 2010 to reduce trade barriers across the Taiwan Strait, is expected to end this year, despite not having an exact termination date. “We have not received notification [from China] that it wishes to terminate ECFA,” Shen told reporters prior to attending a meeting at the Legislative Yuan. “Even if we are notified, the agreement would only cease after six months.” While acknowledging the