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May 27, 2017

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PC market gains momentum: Quanta Computer

TAIPEI, Taiwan -- The PC market is on track for recovery, as shown by growing consumer demand, Quanta Computer (廣達) said yesterday, adding that sales in the second half of the year are likely to exceed those in the first half.

Quanta held a shareholder conference yesterday in which the company's vice president C.C. Leung (梁次震) made the above comment. He forecast that company revenue in the third quarter would grow 10 percent from the previous quarter.

Foreign investors expect Quanta to perform better down the road, as the company is doing well with its wearable devices. As such, the target price of Quanta has been raised to NT$99. The company began rolling out watches last year, said Leung, adding that shipments are likely to grow in the second half of the year.

Other PC Makers Optimistic about Second Half of 2014

Another major brand, Acer Inc. (宏碁), also said the PC market may see signs of improvement in the second half of the year. In a shareholder conference, Acer CEO Jason Chen (陳俊聖) expressed his confidence regarding the company's Chromebook and other two-in-one products, which he said are likely to attract demand.

According to statistics from IT consulting firm IDC, Acer has regained the top spot in Latin America's commercial PC market. With higher-than-expected shipments, there has been a shortage in PC parts supply. Acer has been busy communicating with suppliers in an effort to meet market demand.

Computer contract maker Pegatron Corp. (和碩) is also optimistic about the PC market. Pegatron Chairman Tung Tsu-hsien (童子賢) pointed out in a shareholder conference recently that laptops sales have stopped declining. Sales in the second half of 2014 will outperform those in the first, Tung said, adding that the figure is likely to grow year by year.

J.P. Morgan Chase Expects Stabilization

J.P. Morgan Chase shares the belief that the PC market is not moving further downward. With sales of tablets reaching a plateau, the erosion impact on the PC market will be reduced, said J.P. Morgan. Unless new functionalities are added to newer tablets, the demand for PC and tablets have somewhat stabilized. With this being said, one should pay special attention to the new iPads that are due to be launched in 2015, J.P. Morgan said.

With more mergers and acquisitions taking place in the PC industry, J.P. Morgan forecast that the largest two players will grab 50 percent of the market share in the next few years. With smaller players such as Samsung and Sony moving out of the industry, Lenovo and HP will gain a more competitive advantage. Taiwan's ASUSTeK Computer (華碩) is poised to benefit from this as well, said J.P. Morgan.

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