Digitimes Research: Global all-in-one PC shipments to drop 3.9% on year in 2015, from TW

TaiwanDigi Times — With consumer demand for all-in-one PCs remaining weak, and Apple’s new high-end iMacs and the price cut for previous-generation models failing to drive sales, Digitimes Research expects all-in-one PC shipments to decline 3.9% on year in 2015 and reach around 13 million units. Since the market is unlikely to see any effective expansion, shipments in 2016 are expected to stay flat from 2015 or drop slightly by 0.5% on year.


Compal begins mass production of smartphones in Vietnam, says paper

VietnamDigi Times — Compal Electronics’ plants in Vietnam have started mass production in small volumes and currently have about 100-200 workers. Compal aims to recruit a total of 2,000, according to a Chinese-language Apple Daily report. Compal has invested US$500 million in the Vietnam plants and will use the production lines to manufacture smartphones.


Commentary: Taiwan notebook ODMs may not see profitability improve in 2H15

TaiwanDigi Times — The top-four Taiwan-based notebook ODMs all saw their profits decline significantly in the second quarter of 2015, and it still remains unclear if they can turn around in the second half of the year amid slowing economic growth globally. Wistron, a front-runner in terms of profitability, saw its net profits sink 89.4% sequentially to NT$77 million in the second quarter of 2015. The earnings translated into an EPS of NT$0.03, the lowest quarterly earnings since the third quarter of 2004.


Digitimes Research: Taiwan 3Q15 notebook shipments expected to drop 12.2% on year

TaiwanDigi 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.


Taiwan notebook ODMs face growing competition from China-based LCFC, Uniwill

TaiwanDigi 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.


China market: Video content provider LeTV to unveil smartphones

China.gifChina-based video network operator and LCD TV vendor LeTV is expected to step into the smartphone market by unveiling 2-3 smartphones during a product event in Beijing on April 14, according to sources familiar with the event. The smartphone offerings are likely to include its LeTV X900 and X600, targeting the high-end and mid-range segments, respectively, indicated the sources.


Amazon cuts tablet orders to Compal, Quanta Computer, says paper

TaiwanAmazon 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.


Taiwan’s Wistron, Compal listed in Apple supply chain

TaiwanTAIPEI — Taiwanese contract electronics makers Wistron Corp. (緯創) and Compal Electronics Inc. (仁寶) have been named as suppliers to Apple Inc., according to a report on the website of the U.S. electronics giant.  Wistron has been building iPhones, while Compal has been assembling iPads, Apple’s 2014 supplier report said Thursday.


Rising competition from China supply chain: Q&A with Compal president Ray Chen

TaiwanCompal Electronics was one of the pioneers that relocated its major production base to China from Taiwan in 1990 and has since then transformed itself into an IT conglomerate with annual revenues topping over NT$700 billion (US$22.17 billion). As a notebook ODM, Compal also formed a joint venture, LCFC (Hefei) Electronics Technology, with China-based notebook brand Lenovo in 2011 as a means to secure notebook orders from the vendor.


Compal Electronics aims to ship 100 million devices in 2015, says president

ODM Compal Electronics aims to ship 100 million notebooks, tablets, AIO (all-in-one) PCs, smartphones, LCD TVs and servers in total in 2015, according to company president Ray Chen. Compal shipped 43 million notebooks in 2014 and expects 2015 shipments to remain unchanged, Chen said. The company shipped nearly 20 million smartphones and four million LCD TVs in 2014 and expects 2015 shipments to increase to 40 million and 4.5 million units, respectively, Chen noted.


Compal to double shipments of new smartphones in ’15

TAIPEI–Taiwan-based Compal Electronics Inc. (仁寶電腦), the second largest contract notebook computer maker in the world, has forecast that its smartphone shipments for 2015 will double from a year earlier as part of its efforts to increase the percentage of non-notebook computer devices in its product portfolio. In the company’s “weiya” dinner, a traditional year-end banquet held ahead of the lunar calendar, Friday, Compal President Ray Chen (陳瑞總) said that the company’s smartphone shipments could hit 40 million units in 2015, up from 20 million units in 2014.


Compal to resume production at Vietnam factory, says president

Notebook ODM Compal Electronics will resume production at its factory in Hanoi, northern Vietnam, as soon as the second half of 2015, according to company president Ray Chen. Compal in November 2007 announced an investment of US$500 million to establish the factory for notebook ODM production, with production scheduled to begin in first-quarter 2009 and production capacity to eventually account for 50% of Compal’s total.


Compal plans to hike ODM prices by 5-15% to reflect wage hikes in China

Taiwan-based notebook ODM Compal Electronics is negotiating an increase in ODM prices by 5-15% with clients, with the adjustment needed to reflect ongoing wage hikes in China and expected to take effect after the 2015 Lunar New Year holiday in late February, according to company president Ray Chen.  Compal had weak gross margins and operating profit margins for the third quarter of 2014 as its US-based clients launched new products, which required the ODM to spend extra resources to recruit sufficient workers for related production, Chen said, adding competition for workers between IT players has always been fierce.