29 July 2008

Compal and Quanta Expect Decreasing Demand

Despite the global economic downturn, many reports have said the demand for PCs is stable and will continue to remain stable. Part of the reason is the introduction of low cost PCs. However, the PC industry is not immune to the economy and some executives from big contract manufacturers are predicting a downturn. Reuters reports:

Quanta (2382.TW: Quote, Profile, Research) and Compal (2324.TW: Quote, Profile, Research), the world's two largest laptop contract makers, turned cautious on laptop PC demand for the second half of the year due to a global economic slowdown, a local newspaper said on Tuesday. The Economic Daily News quoted Compal Electronics Inc President Ray Chen as saying the subprime woes have caused an impact on global demand for laptops, while the Chinese-language newspaper said Quanta Computer Inc Vice Chairman C.C. Leung had expressed concerns over the laptop market if the global economy deteriorates.

Leung's comments came after Quanta Vice President Elton Yang said earlier this month that his company had yet to see a negative impact on its sales from the global economic slowdown.

Interesting. PC sales have remained strong, but how long this will continue is, at best, uncertain for now. Macroeconomic factors will eventually weigh in and if those factors are negative, PC sales will indeed go down.

Reuters: Quanta and Compal cautious on H2 laptop demand - paper

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