LOW VISIBILITY:
Worries over the effects of rising inflation, lockdowns in China and Russia’s invasion of Ukraine are fueling uncertainty in the laptop market, reports say
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By Chen Cheng-hui / Staff Reporter
The country’s major contract laptop makers are expected to see shipments regain their growth momentum this quarter, after shipments weakened last quarter due to supply constraints and the effect of the Lunar New Year holiday. , local media reported last week.
However, it remains unclear how shipments from the country’s top five original design laptop manufacturers (ODMs) would fare in the second half of the year, amid uncertainty over potential shortages. of key components, logistical bottlenecks due to COVID-19 lockdowns and rising inflationary pressure. , say the reports.
The five companies are Quanta Computer Inc (廣達), Compal Electronics Inc (仁寶), Wistron Corp (緯創), Inventec Corp (英華達), and Pegatron Corp (和碩). As Taiwan laptop ODMs account for more than 90% of global production, their shipment dynamics are highly correlated with global market dynamics.
Photo: Reuters
Global laptop shipments rose 19% year-on-year to 268 million units last year on strong trade demand in the final quarter of the year, the Boston-based research firm said. Strategy Analytics in a January 31 report.
Strategy Analytics attributed fourth-quarter performance to Windows 11 enterprise upgrades, which boosted Windows laptops in the quarter across all regions, despite slowing Chromebook demand in the second. semester of last year.
In the first quarter of this year, shipments of the country’s top five laptop ODMs reached 41.6 million to 41.7 million units, representing a quarterly decline of nearly 20%, according to compiled data. from the latest business revenue updates released on Friday.
Quanta, the world’s largest contract laptop maker, shipped 16.9 million units last quarter, down 15% quarter-on-quarter and 11% year-on-year, while Compal, the world’s second-largest maker laptops under contract, announced shipments of 11.8 million units, down 26.7% from the previous one. quarter and 9.9% lower than a year earlier, according to company data.
Wistron, Inventec and Pegatron reported shipments of 5.6 million, 5 million and 2.3 million to 2.4 million units respectively, down 25.66%, 10.71% and 20% from the previous quarter.
On a yearly basis, shipments from the three manufacturers fell 3.7% to 5% as demand for hybrid work environments supported growth in the developed market, while customer shifts towards mobility drove the market emerge.
All five ODMs said they have clear order visibility through the end of the first half of the year, with Inventec expecting slight growth in laptop shipments this quarter, while Compal and Wistron expect shipments will increase by approximately 10% compared to the first quarter.
Pegatron also maintained its previous guidance and estimated that second quarter shipments would increase 25-30% from the first quarter, but Quanta said it was difficult to provide guidance for second quarter shipments due to uncertainties. .
Given continued shortages of key components and lockdowns in Shanghai and Kunshan, China, the five ODMs said the adverse effects of disease prevention measures on the laptop supply chain are expected to emerge later this month, local media reported.
Russia’s invasion of Ukraine would also affect the European market, while rising global inflation and port congestion would also affect shipments in the second half, the companies said.
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