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May 28, 2017

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Contract laptop firm shipments forecast to rise 10%

TAIPEI--Shipments of Taiwan-based contract notebook computer makers are expected to show a quarterly increase of about 10 percent in the second quarter, market analysts said yesterday.

International PC vendors' efforts to launch new models are expected to boost buying among consumers, while the June 3-7 Computex Taipei show is expected to boost the PC market, they said.

Computex, the largest ICT trade show in Asia and the second largest in the world, this year will display new devices from 1,710 Taiwanese and foreign exhibitors and is expected to attract about 130,000 visitors, including 38,000 potential foreign buyers, according to the organizers.

In addition, with Microsoft Corp. having ended support for its Windows XP operating system, the waves of replacements are expected to boost the notebook computer industry, analysts said.

Among the upbeat notebook computer ODM services suppliers, Quanta Computer Inc. is anticipating about a 10-percent growth in its shipments for the April-June period from the previous quarter.

With the company's customers gearing up to unveil new models to encourage Windows XP replacements, Quanta's second-quarter shipments could rise to 11.55 million units from 10.50 million units the previous quarter, Quanta Vice Chairman C.C. Leung said.

The outlook for the third quarter is even more optimistic, he added.

Compal Electronics Inc., another Taiwanese manufacturer, is likely to upgrade its shipment forecast for the second quarter to around 15-20 percent from an earlier estimate of 10 percent, since the company has secured more orders from U.S.-based Hewlett-Packard.

Wistron Corp., meanwhile, is anticipating a 5-10 percent quarterly growth in shipments for the second quarter, while Pegatron Corp. has had forecast an up to 5 percent increase from a quarter earlier.

Inventec Corp. said its shipments for the second quarter are unlikely to change much from the first quarter but will accelerate in the second half of the year. The company said it will also benefit from solid demand for servers, mobile devices and wearable devices as it has diversified a product portfolio.

Barclays Capital echoed the upbeat assessments by the Taiwanese suppliers, saying global notebook computer shipments for the second quarter could rise 5-7 percent from the first quarter.

The brokerage said the presence of new models in the market has helped the notebook computer business offset the impact of the slow season in the second quarter as international brands have been rushing to build up inventories to meet rising demand.

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