Quanta Computer Inc (廣達) expects its business in the second half of this year to outpace the first half, supported by the upcoming launch of new wearable devices and notebook computers for a major US client, company executives said yesterday.
“The client is ready to launch their new products... Performance in the second half is expected to grow from the first half,” Quanta chairman Barry Lam (林百里) told a news conference ahead of an investors’ conference.
Quanta, the world’s largest contract notebook maker, is the main supplier for Apple Inc’s MacBooks and the sole supplier for its Apple Watch. It is widely speculated that Apple will introduce its new smartwatch and notebook devices this fall.
Photo: CNA
Quanta vice chairman C.C. Leung (梁次震) said seasonal demand would also help boost shipments of Quanta products in the second half, despite uncertainties in the global economy, with notebook shipments likely to expand 10 percent from 19 million units in the first half.
Xiaomi Corp (小米) has also joined the notebook market, adding more pressure on existing players, but Leung said he expects a limited impact on Quanta as Xiaomi mainly focuses on the Chinese market.
However, the sharp appreciation of the New Taiwan dollar against the US dollar this quarter pressured the company’s operations, Leung said, adding that the firm will do its best to hedge foreign exchange risks.
Quanta’s net income rose 3.8 percent from NT$3.37 billion (US$107.31 million) a year ago to NT$3.5 billion last quarter.
The figure indicates a quarterly decline of 3.2 percent due to seasonal factors, the company said.
Gross margin reached 5.24 percent, up from last year’s 4.37 percent and the prior quarter’s 4.98 percent, marking the company’s highest gross margin since the third quarter of 2009, according to Quanta’s filings with the Taiwan Stock Exchange.
Operating margin improved by 0.22 percentage points both annually and quarterly to 2 percent last quarter, company data showed.
In the first half of this year, Quanta’s combined net income totaled NT$7.11 billion, up slightly by 1 percent from last year’s NT$7.04 billion.
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