Weak growth may continue in Q3 for Taiwan laptop makers
CNATAIPEI--Low-priced tablets and a product transition period will continue to drag down shipments of Taiwan-based notebook computer makers in the third quarter, according to Bank of America Merrill Lynch.
August 23, 2013, 12:01 am TWN
The overall outlook for the second half of 2013 remains challenging, with an expected shipment growth of just 2-3 percent for Taiwan-based brands and contract laptop makers this quarter, the investment banker wrote in a Wednesday note to its clients.
PC brands Acer Inc. and Asustek Computer Inc. have suffered from the rise of low-price tablets and slowing demand for PCs in the second quarter, Bank of America Merrill Lynch's Robert Cheng wrote in the note.
“Acer even saw losses again and we believe this situation will likely continue for the next four quarters,” Cheng said.
“Asustek looks relatively fine, but notebook guidance is quite weak,” he said, adding that Asustek's “product mix will become worse in the second half of 2013.”
In the contract manufacturing sector, Compal Electronics Inc. and Wistron Corp. forecast flattish notebook shipment growth for the third quarter, while Quanta Computer Inc. and Inventec Corp. still expect sequential growth, the analyst said.
Pegatron Corp., which is likely to experience some share loss as client orders for consumer notebooks dip, forecast its notebook shipments to drop by 5 percent to 10 percent in the current quarter, the steepest decline among the top five assemblers, Cheng added.
According to a July 10 report by industry research firm Gartner Inc., worldwide shipments of desktop and notebook PCs dropped to 76 million units in the second quarter of 2013, down 10.9 percent from the same period last year.
This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market's history, the report noted.
In emerging markets, inexpensive tablets have become the first computing device for many people who are, in the best case scenario, deferring the purchase of a PC, Gartner analysts said.