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May 28, 2017

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No benefit likely from new electronic devices: agency

TAIPEI--The launch of new electronic devices such as smartphones and notebook computers later this year is unlikely to benefit the domestic high-tech sector, a ratings agency said Wednesday.

The release of new products in the second half of 2012 could bolster demand in Taiwan's electronics industry, but the demand may not be strong enough to completely reverse the dismal sales growth of many companies over the past few quarters, Taiwan Ratings said.

"We believe that while the launch of new generations of smartphones and touch screen notebook PCs running Windows 8 could revive business momentum in late 2012, the weak global economy is hampering a full recovery," Taiwan Ratings' analyst Daniel Hsiao said in a credit report.

Over the past six months, the credit outlook for high-tech companies in Taiwan has shifted from stable to negative, the report said

Among the nine high-tech companies rated by the agency, three were given a negative credit forecast, while the outlook for six was said to be stable.

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