01 September 2008

Quanta to Make Own Branded Products

Digitimes reports:

First-tier notebook maker Quanta Computer is planning to head toward promoting own-brand products by expanding into branded wireless Internet applications, which Barry Lam, chairman of Quanta, stressed will not impact its OEM notebook business.

The new products will be based on expanding MID (Mobile Internet Device) designs with even stronger mobile communication abilities. The company already has samples in testing with clients and expects the new product line to start boosting revenues in 2009, noted Tim Li, VP and CFO of the company.

Quanta are the worlds leading contract notebook manufacturer. All their customers have their own branded products. They make notebooks for companies like Dell and I suppose Lenovo and others. They therefore should be very careful about what products they stick their own brand on. Right now it doesn't seem to be notebooks.

One of the biggest fears of overseas contracting to companies in Taiwan is that the companies will rework the models and sell them under a different brand name. Quanta developing their own branded products may scare off some customers.

However, the real value in the value chain does not come from manufacturing but from things such as brand premium. It is this lucrative sector of the value chain Quanta hope to penetrate.

Digitimes: Quanta is focusing on develop own-brand non-notebook products

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