Notebook demand rocketing in East Asia market

Taiwan’s notebook makers are profiting from rocketing demand for notebooks and netbooks, reports Chinese Economic News Service (CENS).

Asustek has raised its shipment target from 16 million to 18 million notebooks and eeePC-branded netbooks. Competitor Quanta Computer said it shipped 4.5 million notebooks in April alone, ten percent more than one month earlier. C.C. Liang, Quanta’s vice chairman, announced last week that his company expects to ship 15 to 20 percent more notebooks in the second quarter compared to the first quarter of this year.

Asustek will launch three new notebooks in the second quarter for business users and launch a respective distribution channel. Business in China is expected to grow 70 percent annually, whilst the share in the market will grow from 13 to 14 percent to 15 to 16 percent. Quanta is receiving higher orders from Acer to manufacture notebooks, and is set to ship a total of 13 million notebooks in the second quarter. Shipments are expected to amount to 50 million units for the entire year.

However, the crisis currently facing the Euro may dampen business. Asus’ CEO C.L. Shen says the current crisis in Greece will not have too much of an impact on business, however the volatility of the euro will affect shipments in the current quarter. The company will have difficulties maintaining its operating profit margin due to the euro and rising prices for components. Despite rising demand for prices, the world’s newest and not very popular economic crisis led to Asus’ revenue crumble by 12 percent in April compared to March.

Supplier Wistron Corp. also saw shipments and revenues decline by up to 20 percent in April. Revenue in April amounted to $44 billion Taiwan Dollar, 18.8 percent less than one month earlier. Notebook shipments fell by 20 percent to 2.4 million. LCD monitor and PC shipments also fell, however rising shipments of handsets and LCD TVs managed to offset diminishing demand.