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Compal expects notebook sales to fall by 10 per cent

by on13 May 2016

Am I the only person buying them?

This week I got my paws on an i7 Asus gaming computer with an Nvidia GPU for nearly 600 euro, according to Compal I must have been one of the few as it sees the industry sliding even more into the mire.

In my case it was one of the deals that are supposed to offload OEM inventory, but Compal suggest that none of these are kickstarting the industry.

Company president Ray Chen said that Electronics' notebook shipments in 2016 are expected to drop by 10 percent on year, as order visibility for the second half of the year remains unclear. He said that demand for notebooks is still weakening and Compal's notebook shipments are expected to drop by a single-digit percentage sequentially in the second quarter. Compal's notebook shipments in the first quarter were 7.9 million units.

Compal has announced its net profit for the first quarter of 2016 decreased 29.5% sequentially and 20.3% on year to US$49.1 million.

Compal's consolidated revenues for the quarter were down 24.6 per cent  sequentially and 10.8 per cent on year. But its first-quarter 2016 gross margin went up to 4.2 per cent.

Compal shipped 40 million notebooks and all-in-one PCs together in 2015 and the volume is expected to drop 10 per cent on year in 2016. Shipments of smart handheld devices including smartphones and tablets were 37 million units in 2015 and the volume is expected to enjoy a double-digit percentage growth. LCD TV shipments were 2.3 million units in 2015 and are expected to grow to 2.4-2.5 million units.

Compal's non-notebook businesses' revenue contribution grew from 25 percent in 2015 to 30 per cent in the first quarter and is expected to stay at around 30 per cent for 2016. The percentage is expected to increase further to 40 per cent in 2017.

Compal is planning to sell its 49 per cent stake in the joint venture to its Lenovo partner after October 2017. The joint venture was established in 2011 and shipped 20 million notebooks in 2015.



Last modified on 13 May 2016
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