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.
With Internet of things (IoT) applications growing popular, many Taiwan-based ODMs and EMS providers are planning to establish fund-raising platforms to attract partnerships with designers worldwide, according to sources from the upstream supply chain. Foxconn Electronics (Hon Hai Precision Industry) established the kick2real website in April, while Quanta Computer is also considering establishing a similar platform.
As large retail chains including Walmart, Best Buy and Target plan to set up data centers to operate e-commerce, server makers Quanta Computer and Wiwynn are looking to land orders based on their lower prices compared to brand vendors’ quotes, according to industry sources. The sources pointed out that the retail chains have all been aggressively expanding their e-commerce business coverage, especially Walmart, which is seeing its sales from the e-commerce segment grow rapidly and is gradually becoming a threat to Amazon.
Commenting on the Internet of things (IoT) business opportunities, Quanta Computer CTO Ted Chang said the industry in still at the initial stage of development, but the business will grow rapidly since it is not about hardware specification breakthroughs, but whether applications are able to satisfy consumer demand. In the future, Quanta will focus on healthcare and medical applications for the IoT business.
Taiwan-based server ODMs have been aggressively expanding their services worldwide. Quanta Computer’s server centers in Japan, and in China’s Hangzhou and Beijing have recently started operating, while its office in Germany will also begin operation by the end of 2014. Inventec is also set to establish a cloud computing server center in Europe to better serve its clients in the region.
Quanta Computer has announced third-quarter results with operating profits reaching NT$11 billion (US$359.31 million), up 3.97% sequentially and EPS at NT$1.23; however, the company’s operating gross margin dropped to only 4.5%, down from 4.93% in the second quarter, because of an increase in the company’s operating expenses.
Quanta Computer has reported consolidated revenues of NT$81.983 billion (US$2.73 billion) for October 2014, representing a 3.72% drop on month and 4.36% increase on year. The company has totaled NT$756.654 billion in year-to-date revenues, up 10.07% compared with the same time last year. For the year of 2013, Quanta Computer totaled NT$880.402 billion in consolidated revenues, down 14.11% sequentially on year.
Quanta Computer reportedly has received new orders from Google for servers recently and will start supplying in the first quarter of 2015, according to industry sources. Quanta declined to comment on its orders. Quanta had been the sole server supplier for Google’s databank center before the search engine company switched about 80% of its orders to Inventec in the second half of 2014. Quanta’s new server orders are likely to account for 50% of Google’s total purchases of servers in early 2015, the sources estimated.
Project Ara, Google’s development plan for modular smartphones, is expected to become available on the market in 2015 with Quanta Computer reportedly being the main hardware supplier. Orders are expected to boost the Taiwan-based ODM’s non-notebook revenues, according to sources from the upstream supply chain. Quanta declined to comment about its clients or orders.
Quanta Computer has reported consolidated revenues of NT$85.155 billion (US$2.84 billion) for September 2014, representing a 4.8% increase on month and 11.84% increase on year. The company has totaled NT$674.671 billion in year-to-date revenues, up 10.81% compared with the same time last year. For the year of 2013, Quanta Computer totaled NT$880.402 billion in consolidated revenues, down 14.11% sequentially and down 0.46% on year.
As demand for data center hardware in Europe has started growing strong recently, server players including Hewlett-Packard (HP), Dell and Quanta Computer have been aggressively investing resources in the market, looking to land orders, according to sources from the upstream supply chain. The sources pointed out that most Internet service players such as Google, Facebook, Amazon and Microsoft used to offer their services mainly in North America, making the region the focus of server players.
To compete for more datacenter server orders, Quanta Computer reportedly will establish a service center in Europe in October, helping its server business to cross North America, Asia and Europe, according to sources from the upstream supply chain. Other Taiwan-based makers such as Wistron, Inventec, Foxconn Electronics (Hon Hai Precision Industry) and Mitac will also strengthen their competitiveness through improving software and services.
Quanta Computer has landed orders for Acer’s 15-inch notebooks for 2015, which will account for 45-50% of Acer’s overall orders. Quanta will become Acer’s largest ODM partner and also the largest notebook maker in 2015, according to sources from the upstream supply chain. Quanta and Acer declined to comment about their orders.
Quanta Computer has announced revenues of NT$77.93 billion (US$2.6 billion) for July, up 8.53% on month and 8.63% on year with combined revenues for the first seven months of 2014 reaching NT$508.27 billion, up 10.48% on year. Quanta shipped 4.2 million notebooks in July, down from 4.3 million units in June. Despite having a notebook shipment drop, the company still managed to achieve a revenue growth in July mainly thanks to a better product mix and contributions from non-notebook product lines, estimated some market watchers, adding that Apple’s increased orders for Mac series products also benefited Quanta’s revenues recently.
TAIPEI, Taiwan — Quanta Computer Inc. (廣達) yesterday announced consolidated revenue of NT$71.803 billion for June, a growth of 4.8 percent year-on-year, and 2.4 percent month-on-month. In June the company shipped 4.3 million units of notebook computers, a month-on-month growth of 10.25 percent, exceeding the original forecasts of below 10 percent.
Apple’s new 12-inch MacBook Air will enter mass production in the third quarter, filling the gap between the 11- and 13-inch MacBook Airs as well as enhancing Apple’s leadership in the small-to-medium-size ultra-thin notebook market, according to sources from the upstream supply chain. Quanta Computer will be responsible for the assembly of the 12-inch device, said the sources, adding that so far, they have not heard any changes coming to the 11- and 13-inch MacBook Air products.
TAIPEI — Taiwan-based Quanta Computer Inc., an Apple Inc. supplier for MacBook laptop lines, could become the main assembler of Apple’s rumored wearable device, the “iWatch,” according to U.S. brokerage Morgan Stanley. The iWatch, which is expected to be launched in the fourth quarter of this year, is expected to contribute more than 10 percent of Quanta’s sales in the October-December period on shipments of 10 million units, Morgan Stanley said.
TAIPEI: Taiwan’s Quanta Computer Inc will start mass production of Apple Inc’s first smartwatch in July, a source familiar with the matter said, as the US tech giant tries to prove it can still innovate against rival Samsung Electronics Co Ltd. The still-unnamed watch, which Apple followers have dubbed the iWatch, will be the company’s first foray into a niche product category that many remain sceptical about, especially as to whether it can drive profits as growth slows in tech gadgets.
TAIPEI, Taiwan — The PC market is on track for recovery, as shown by growing consumer demand, Quanta Computer (廣達) said yesterday, adding that sales in the second half of the year are likely to exceed those in the first half. Quanta held a shareholder conference yesterday in which the company’s vice president C.C. Leung (梁次震) made the above comment. He forecast that company revenue in the third quarter would grow 10 percent from the previous quarter.