Reuters Business
Taiwan suppliers see no impact from Xbox cutback
biz.yahoo.com
TAIPEI, April 19 (Reuters) - Two Taiwan electronic component suppliers to Microsoft's (NasdaqNM:MSFT - news) Xbox game console said on Friday they saw no imminent impact from a cutback on console shipments by the world's largest software maker.
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``For the time being, we don't see any direct impact,'' said an official at Delta Electronics (2308.TW), which supplies switching power suppliers for Microsoft's Xbox machines. The official, who declined to be identified, added the Xbox business makes up only a small portion of the company's total sales.
An official at Cheng Uei Precision (2392.TW), which supplies connectors, cable and switching power supplies for Xbox, also said Microsoft's shipment revision had not yet affected the company's operations but declined to comment on order books.
Shipments to Microsoft's Xbox are expected to contribute around T$1.39 per share to Cheng Uei's estimated 2002 EPS of T$4.51, according to a recent research report by Capital Securities.
Officials at Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW), the world's largest contract chipmaker, were not available for comment.
Nvidia (NasdaqNM:NVDA - news), which supplies graphics chips to Microsoft's Xbox game console, is one of TSMC's major customers.
Microsoft said on Thursday it expected to ship a total of 3.5 million to 4 million Xbox video consoles by the end of June, a drastic scaling back of previous expectations of 4.5 million to 6 million units, due to weak sales in Japan and Europe.
While Singapore-based Flextronics (NasdaqNM:FLEX - news) makes Microsoft's Xbox console for the North American and European markets, Microsoft has not yet settled on a partner for the Asian market, with some analysts speculating that contract will go to a Taiwan- or Hong Kong-based contract manufacturing provider. |
