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Notebook ODMs look to shipment growths in 2H16

Release time:2016-07-21 12:11  READ: time

Taiwan-based notebook ODMs Quanta Computer, Compal Electronics, Wistron and Inventec have announced their June shipments with Quanta shipping four million notebooks, up 300,000 units from a month ago.

Quanta's June consolidated revenues were NT$69.45 billion (US$2.15 billion), down 0.86% on month and 34.76% on year, while consolidated revenues for the second quarter were NT$207.67 billion, up 5.22% sequentially. The company's revenues in the first half were NT$405.04 billion, down 11.22% on year. For Quanta to maintain its annual revenues at above NT$1 trillion in 2016 as in 2015, the company will need to achieve at least NT$594.96 billion in second-half revenues, an increase of 47% from the first half.

Despite enjoying an on-month shipment growth in June, most of Quanta's increased notebook shipments were entry-level models such as Chromebooks, which only have limited contribution to revenues. However, With Apple's new MacBook Pro to begin mass shipments in the third quarter, some market watchers expect Quanta's revenues to see strong growth in the second half.

Compal shipped 3.4 million notebooks in June, up 36% from May. Compal pointed out that the shipment growth was mainly due to increased orders from US-based clients; however, the company's shipments in the second quarter were still down from the first because of its weak shipments in April and May.

Apple is also said to be launching a new Apple Watch, which is 20-40% thinner than the existing Apple Watch, but features a bigger display, in the second half. The new Apple Watch will also have a longer battery life and use a solution from Samsung Electronics. The new Apple Watch supports FaceTime as well as 3G/4G transmission.

Compal expects its shipments in the third quarter to enjoy a single-digit percentage sequential growth. As for its non-notebook product lines, most of them enjoyed on-month shipment growths in June especially the handsets.

Wistron shipped 1.9 million notebooks in June, up from 1.5 million units in May. The company also shipped 1.1 million desktops, 190,000 servers, 300,000 LCD TVs and 500,000 LCD monitors in June.

For July, Wistron expects all its shipments except LCD monitor to suffer from on-month declines. However, the notebook segment will see shipment growths in both August and September, boosting its third-quarter notebook shipments by 5-9%.

Inventec shipped 1.6 million mobile devices including notebooks in June, down from 1.7 million units in May. As for its strong June revenue performance, Inventec pointed out that the revenue growth in the month was mainly because of stronger-than-expected server demand from the US and China, boosting its server revenues in the second quarter by 30% sequentially.

Inventec's handheld device shipments also had strong shipments in the quarter. As for the notebook, the product line's shipments are growing stably as most of the company's orders are for enterprise models.

For the third quarter, Inventec expects its notebook shipments to grow by a single-digit percentage sequentially, while its server shipments will only see a mild growth after a surge in the second quarter and will see a 5-10% on-year growth for 2016. The company's smart handheld device shipments will enjoy sequential growth in both the third and fourth quarters and will continue increasing in 2017.


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