Digi Times — Taiwan-based ODMs will ship an estimated 32.067 million notebooks (not including detachable hybrid models) during the third quarter of 2015, accounting for 81.6% of the global total and increasing 2.4% on quarter but decreasing 12.2% on year, according to Digitimes Research. There will be 39.288 million notebooks shipped globally in the third quarter, growing 2.5% on quarter but slipping 12% on year, Digitimes Research indicated.
Digi Times — China-based ODMs LCFC (Hefei) Electronics Technology and Uniwill Technology are expected to have notebook shipments in 2015 significantly increasing on year, posing increasing competitive pressure on Taiwan-based notebook ODMs, mainly Quanta Computer, Compal Electronics, Wistron and Inventec, according to industry sources in Taiwan.
TAIPEI: Taiwan’s Quanta Computer, the world’s top contract PC manufacturer which makes laptops and assembles watches for Apple, said it is considering establishing a manufacturing base in India. “We’re gathering materials for evaluation. We’re looking into it,” Quanta vice-chairman CC Leung told reporters, after the company’s annual investor conference.
Quanta Computer reportedly is planning to expand its server business software team and will double the existing personnel to 100 by the end of 2015 and double the number again to 200 in 2016 to prepare for entering the enterprise server industry, according to sources from the upstream supply chain. As demand for datacenter establishment from players such as Google, Amazon and Facebook continues rising, these Internet service players have been nurturing white-box server players including Quanta Computer and Wiwynn to reduce costs.
Quanta Computer has become VCE’s exclusive supplier of servers used in its VxRack System, a hyper-converged rack-scale system for private cloud applications unveiled by VCE in early May, according to Taiwan-based supply chain makers. However, Quanta declined to comment on the report. VCE is a joint venture set up by EMC and Cisco Systems mainly for integrating EMC-developed storage equipment, Cisco-developed servers and VMware-developed virtualization software to provide private cloud computing solutions for enterprise users.
Taiwan server players such as Inventec, Mitac International and AIC are optimistic about China’s server market and have been accelerating their expansion into the market, while Quanta Computer is reportedly planning to form a deeper relationship with China-based server vendor Inspur and Wiwynn will start promoting its latest server products in China.
White-box server vendor Quanta Computer has recently started accelerating its private cloud computing solution development, looking to expand its sales in 2016 and the move is expected to directly affect Hewlett-Packard (HP) and Dell. Currently, direct supply to Internet service players already account for over 80% of Quanta’s server shipments.
The third version of China’s data center server technology standard project led by China-based Baidu, Alibaba and Tencent are set to be announced at the end of 2015 and the project will cover more standards and adopt a modularized design to help reduce China data centers’ server purchasing costs, according to sources from the upstream supply chain. China launched the first version of the project in 2012 and the second in 2014 and the project is rather similar to the Open Compute Project (OCP) that Facebook has been aggressively promoting.
Quanta Computer has reported consolidated revenues of NT$80.051 billion (US$2.56 billion) for March 2015, representing a 45.51% increase on month and 7.49% increase on year. The company has earned NT$205.193 billion in year-to-date revenues, down 4.93% compared with the same time in 2014. The company’s stock price dropped 0.68% and finished at NT$73.90 in trading on the Taiwan Stock Exchange (TSE) on April 10, 2015.
Quanta Computer has reported 2014 revenues of NT$926.32 billion (US$29.6 billion), up 5.2% from a year ago and EPS of NT$4.90, up from NT$4.84 in 2013. However, in the fourth quarter, despite a growth in gross margins from 4.5% in the third quarter to 4.57%, the company’s operating profit margins were only 1.26%, down from 1.49% of the third quarter because of expenses related to preparations for a new product, the company noted.
Amazon has reduced tablet orders released to Taiwan-based ODMs Compal Electronics and Quanta Computer by an estimated 30%, according to a Chinese-language Economic Daily News(EDN) report citing Taiwan-based supply chain makers as indicating.
Google is planning to push 2-in-1 devices in 2015, according Digitimes Research’s inquiries within the upstream supply chain. Google’s 2-in-1 Chromebook designed by Quanta Computer is expected to be completed by the end of the first quarter. The device features a detachable form factor and runs Android in the tablet form and Chrome when attached to a keyboard.
Notebook ODM Quanta Computer has been competing for server ODM orders from Dell, according to industry sources. Quanta Computer was originally a server ODM for Dell and NEC but has shifted the focus of its server business from ODM to white-box production for direct shipments to clients setting up cloud computing data centers including Google, Facebook, Amazon and Microsoft.
Optimistic about software defined network (SDN) development, Facebook is planning to shift its network switch orders from existing brand partners to Taiwan’s white-box suppliers in 2015 and both Quanta Computer and Wiwynn, a white-box server subsidiary of Wistron, are already preparing aggressively to strive for related orders.
Although China is currently seeing strong demand for cloud computing data centers, Taiwan-based Quanta Computer and Wiwynn, a server brand subsidiary of Wistron are not in a hurry to strive for related orders and will continue to devote their efforts to meeting demand from clients in Europe and North America because China-based server players such as Inspur and Sugon have been competing for orders with cheap solutions, according to sources from the server supply chain.
Taiwan-based ODM Quanta Computer has begun volume production of the new 12-inch MacBook Air, paving the way for Apple to launch the device in the first quarter of 2015, according to sources at Taiwan-based supply chain. Quanta has stepped up efforts to recruit more workers in order to ramp up the production, revealed the sources.
Taiwan-based notebook ODM Quanta Computer, in view of large potential demand for servers used in cloud computing data centers in Europe and North America, will set up a server factory in Germany, while Wiwynn, ODM Wistron’s subsidiary specifically responsible for producing and marketing servers, will do so in Mexico and Czech, according to Taiwan-based supply chain makers.
Taiwan-based notebook ODM Quanta Computer and Wiwynn, Taiwan-based ODM Wistron’s subsidiary specifically responsible for direct-account (white-box) sale of servers, are expected to see direct-account shipments of servers in 2015 significantly increase on year mainly due to fast growing demand for use in Internet data centers, according to Taiwan-based supply chain makers.
Wistron’s white-box server subsidiary Wiwynn and Quanta Computer are expected to achieve their server business goals for 2014, but in anticipation of growing competition in the server market in 2015, the two players have already stepped up efforts looking to expand their shipments, according to sources from the upstream supply chain.
Notebook ODM Wistron will set up a software R&D center with 200 engineers initially in southern Taiwan, while fellow maker Quanta Computer will expand software R&D manpower to support production of data center servers to compete for orders for setting up private or private/public hybrid cloud computing platforms, according to the companies. Inventec will also expand R&D center by recruiting 1,000 software engineers in 2015.