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Fri, May 25, 2001 - Page 24 News List

Alpha-Top may make new IBook

BLOOMBERG , TAIPEI

Apple Computer Inc, the second-largest seller of computers to US schools, plans to release a larger-screen version of its recently introduced IBook laptop in July, Apple's Taiwan contractor Alpha-Top Corp (致勝科技) said.

The IBook, to be made exclusively by Taipei-based Alpha-Top for Apple, will have a wider screen and come in a variety of colors instead of the single white Apple introduced on May 1, said Alpha-Top spokesman Wang Hsin-wu.

Cupertino, California-based Apple and other US computer makers such as Dell Computer Corp and Hewlett Packard Co are increasing their orders to Taiwan manufacturers in a bid to cut costs as the economy slows at home. Taiwan companies accounted for half of the world's production of notebooks last year.

Apple's order should boost Alpha-Top's profit by almost a third to NT$800 million (US$24 million) this year, Wang said. Sales should grow by 32 percent to NT$21.8 billion, as Alpha-Top ships at least 690,000 notebook PCs, more than half of those to Apple, he added.

As US companies focus on Taiwan, Alpha-Top and other companies there are focusing future production on China.

Alpha-top said it may borrow funds from Elitegroup Computer Systems Co (精英電腦) and Pou Chen Corp (寶成), which together own 40 percent of the company, to lease a plant in China.

China has attracted investments from almost all of Taiwan's notebook computer makers, including Asustek Computer Inc (華碩電腦), Compal Electronics Inc (仁寶電腦) and Acer Inc (宏電). Those companies make components in China while maintaining operations and design facilities in Taiwan to meet Taipei's restrictions on mainland investment.

"People have questioned why we aren't cutting costs by making notebooks in China," Wang said. Part of Alpha-Top's production, including IBooks, may be shifted to the factory, he added.

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