256Mbit graphic memory will go higher
The price of 256Mbit graphics memory chips is showing signs of bottoming out now that mid-range and high-end graphics chips from ATI Technologies and Nvidia support the memory, according to Taiwan-based distributors.
Distributors in bidding battle with OEMs for flat panel supply
Taiwan's flat panel manufacturers are struggling with a shortage of supply as a growth spurt in demand for notebook computers and TFT LCD monitors extends into the hot season. The increasing demand has forced some unidentified medium-sized and smaller distributors to enter a bidding war for the limited supply with OEMs like Hewlett-Packard (HP) and Dell as well as ODMs such as Compal Electronics, paying more than the normal market prices, according to industry sources in Taiwan. Still, they can only get about 80-90% of the shipments they need. "Our estimate is that demand currently exceeds supply by about 20%, resulting in an average price increase of US$5-8 per month in the next few months," said Jeff Hsu, a vice president at Chi Mei Optoelectronics (CMO).
Distributors in a bidding battle.
Flat panel prices have been on the rise since the second quarter of 2003. Now the momentum is expected to continue with the traditional Christmas season around the corner. The most advanced, fifth-generation (5G) plants of Samsung Electronics, LG.Philips LCD and AUO and other suppliers have not able to produce as many panels as expected, some analysts said. Global LCD monitor shipments registered meager 1% quarter-on-quarter growth in the second quarter while global CRT monitor shipments declined further
Dell plans 9-10 million notebooks in 2004
Dell plans to ship nine to 10 million notebooks in 2004, up from six to 6.5 million units this year, according to sources at Dell's Taiwanese notebook contract makers.
According to the sources, Dell made the 10-million-unit projection when drawing shipment plans for next year with its contract manufacturers. If Dell manages to achieve the goal, next year it will seize about 25% of the global notebook market, which is estimated at about 41 million to 42 million units, according to Taiwanese notebook makers.
In 2004, suppliers Quanta and Compal are expected to each produce four to five million notebooks for Dell. Wistron is expected to ship about 600,000-900,000 units, while Samsung, which has been producing only super-slim, one-spindle notebooks for Dell, is expected to ship 300,000-400,000 units, according to sources.
Rising demand in the consumer market and Dell's success in its direct distribution system are expected to be the major forces behind the sales growth, Taiwanese notebook makers said.
While in the past the sales ratio of the consumer and business market in the US was at about 1:3, the consumer segment is expected to account for half of the total US notebook market next year.
Suffering from the aggressive low-pricing strategy by Hewlett-Packard (HP), Dell has lost the crown in the global notebook market since the fourth quarter of last year. In the first half of this year, Dell shipped about 2.55 million to 2.60 million notebooks, trailing behind HP by about 300,000 units, according to estimates by Taiwanese notebook makers.
HP's aggressive cost-cutting, however, is not expected to last for long. The company's aggressiveness in price-cutting has caused wide complaints from its Taiwanese suppliers, and some have decided to walk away from its orders due to margin concerns. HP chief executive Carly Fiorina, in the company's earnings conference on August 19, conceded that HP had pushed too hard on PC and component prices.
Meanwhile, it is expected that Dell will strongly benefit from its direct distribution channel in 2004, as it allows the company to bypass additional costs from distributors, Taiwanese notebook companies said
Asustek to nearly double own-brand notebook sales in Greater China in 2003
Asustek Computer expects to sell 200,000 own-brand notebooks in the Greater China region this year, up by almost 100% from last year, according to sources close to the company. In 2003, the company's notebook sales in Taiwan, China and Hong Kong are expected reach 120,000, 60,000-70,000 and over 10,000 units, respectively. Currently, Asustek sells about 5,000 notebooks in China per month. By achieving its full-year sales goal, Asustek will become a key competitor among the top PC vendors in China, rivaling competitors like Acer and Legend. In Greater China, Legend expects to sell about 300,000 notebooks this year while Acer's notebook sales are estimated at about 200,000 units, sources said. According to sources, Asustek has aggressively explored the China market, and in one of its efforts, the company has set up direct retail channels for notebook sales. Most Chinese distributors are not willing to provide the service, which involves higher costs and inventory management ability, but display only three or four products in their stores, sources added.
Camera phones outsold digital still cameras in 1st. half 2003
Camera phones outsold digital still cameras (DSC) for the first time in the first half of the year, said Strategy Analytics. The market research firm reported that 25 million camera phones were shipped worldwide in the first half, compared to 20 million DSCs shipped in the same period.
NEC and Panasonic were the top two vendors, each with a 15% market share in the first half. Nokia followed in third with a 14% share. Strategy Analytics forecasts that 65 million camera phones will be sold this year, driven largely by growth in Japan and South Korea, to account for 13% of global handset sales.
In an earlier report, Strategy Analytics said that camera phone sales totaled 18 million in 2002, making up just 4% of total handset sales.
The camera phone market is expected to grow to US$49 billion by the end of 2008, offering opportunities for handset makers, as well as DSC, CMOS/CCD camera module, memory, battery and display producers.
In the near-term, camera phones will not pose a serious threat to the consumer DSC market, due to poorer picture quality. Security and privacy concerns will be one potential problem for the camera phone market, Strategy Analytics warned. The bigger challenge, however, remains pushing camera phones to mass-market price points.
Dell and HP to seize over 35% of the global notebook in 2003
Hewlett-Packard (HP) and Dell, the world's top two notebook vendors, are expected to each ship over six million notebooks in 2003 and together seize over 35% of the global market, according to estimates by Taiwanese notebook makers.
In the past, combined sales of the two companies have accounted for over 30% of the global market, local notebook makers said. Last year, HP and Dell respectively sold about 4.5 million and 4.4 million units.