PC market is fine claims Compal

Hardware maker Compal is insisting that things are fine in the PC market despite predictions of doom.

Analysts have been talking about the industry being walloped by a downturn in consumer spending and rising component prices following the Japanese earthquakes. Already HP and Acer have reduced their PC shipment forcasts.

But Compal Electronics chairman Rock Hsu, pointed out that demand in the PC industry is still not bad and shipments of enterprise notebooks are also growing.He added that European and  US sales are not as bad as most market watchers believe.

Hsu downplayed the impact of tablets, saying that their success will only nobble the market for entry level notebooks, but the overall growth of the PC industry is still on good track.

He told Digitimes that global tablet PC shipments will reach about 60 million units with 30-40 percent of the volume bitten off from traditional PCs, especially entry-level notebooks.

Since tablets are still produced by notebook makers, the notebook manufacturing industry will continue to see growth.

Hsu admitted that the Japan earthquake has had some impact on the second quarter. He said that the “upstream capacity” will need be be watched further. At the moment everything was OK because the supply chain still has about one to two months of stock.

The shortage of electricity in Japan as well as the status of the nuclear plant crisis could cause some problems in the longer term..

But Hsu main point was that the PC industry was still healthy and eif the supply status can return to normal by the third quarter, the PC industry is still expected to see strong growth in 2011, come hell or high water.