Tuesday, May 10, 2005
Even though Taiwan is the largest makers of notebook PC, but the profit margin is shrinking as competition getting stiffer. Quanta Computer Inc. and Compal Electronics Inc., the world's two largest notebook-computer makers, said their profit margin fell in the first quarter. Quanta Computer said its net income fell 12 percent to NT$2.65 billion from NT$3 billion a year earlier. Compal reported that its Q1 revenues reached NT$1.6 billion, less than last year at NT$1.7 billion.
Facing the consequence, Compal president Ray Chen said, "Now we're pinning our hope on the third quarter for stronger growth above 5 percent on a quarterly basis in the second quarter." On the brighter side, Wistron Corp. posted better earnings in the first quarter of the year after suffering operating losses last year. Wistron said it saw after-tax earnings grow 80% year-on-year to reach NT$362 million or NT$0.4 in earnings per share, in the first quarter. Since the beginning of this year, Wistron has been making all-out efforts to increase product lines and expand customer base and reported received juicy notebook orders big companies such as Dell Computer and Hewlett Packard, in addition to original customers of Acer and International Business Machines.
On other news, a report from industry researcher IDC showed that worldwide shipments of personal computers rose 11 percent in the first quarter to 46.2 million units, from 41.6 million a year earlier, which was 1 percent better than expected.
By: DocMemory
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