To: Patrick E.McDaniel who wrote (85943 ) 12/18/1998 9:48:00 AM From: Mohan Marette Read Replies (1) | Respond to of 176387
DELL to increase procurement of notebook PCs by 60% to 2 million units. Hi Pat, Looking good,NO? ======================================World's PC Makers Increase Notebook Procurements in Taiwan December 18, 1998 (TAIPEI) -- Several of the world's leading personal computer makers last week sent procurement officers to negotiate new contracts with their Taiwan OEM partners. They included Dell Computer Corp., International Business Machines Corp., Hewlett-Packard Co., Fujitsu Ltd. and NEC Corp. The five leaders in the PC industry are expected to increase their procurements of notebook PCs by nearly 1 million units, a business opportunity worth more than US$30 billion for local manufacturers. Since the orders are large in volume, companies with large output capacities, such as Quanta Computer Inc., Compal Electronics Inc., Acer Inc., Arima Computer Corp. and First International Computer Inc., are all hoping to grab a share of the golden opportunity. Affected by the low-priced trend of the PC market, multinational PC makers are inclined to reduce production costs by commissioning original equipment manufacturers to produce PCs for them. Due to high quality, flexibility, and strong design and logistic abilities, Taiwanese manufacturers have been the top choice of both U.S. and Japanese PC companies seeking OEM partners. Dell plans to increase procurement of notebook PCs in Taiwan by 60 percent, to 2 million units. Quanta Computer and Compal Electronics will remain its OEM partners. IBM has decided to further increase orders of notebook PCs with Acer Inc., and it has also chosen Quanta to produce B5 (mini) notebooks. According to market sources, IBM is still seeking a third OEM partner in Taiwan, and Compal Electronics has been in close contact with the company. In addition to filling orders for Dell, Compal will also continue to produce notebook PCs for HP, which recently added Quanta as a new partner. NEC has been placing orders with First International since September, and it is expected to begin placing orders with GVC Corp. as well. Taiwan's quasi-official Institute for Information Industry estimated that Taiwan's output of notebook PCs reached 4.46 million units in 1997, accounting for a 30 percent share of the global market. The figure this year is expected to reach 6.07 million, or nearly 40 percent of global production, while the output for 1999 is forecast at 8.2 million units. (Commercial Times, Taiwan)