Will Notebook Prices Increase?

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Compal Electronics, the second-largest maker of notebooks in the world, is in talks with customers about price increases, or supplies may fall. Mr. Ray Chen, Chairman of Compal Electronics, which has just invested in building a factory in Vinh Phuc province, said that with the increase in components cost pressure, the company is negotiating with customers to order notebook production to raise prices. Production contract. Compal Electronics announced its goal of shipping 32 million notebooks in 2008. But Mr. Chen said the target could be lowered if customers refuse to accept OEM pricing (the original equipment manufacturer). With 95% of notebooks in the global market in 2009 scheduled to be produced by Taiwan subcontractors, Mr.

Chen said it was time for Taiwanese manufacturers to stop competing for each other. To maintain the health of this industry and stabilize the supply for the world notebook market, Mr. Chen said that customers should understand the pressure from the rising component cost. He revealed Compal still tried to make component suppliers agree not to raise prices in the first quarter of the year but now it is difficult to ask suppliers not to raise prices in the second quarter. If component suppliers cannot achieve the price increase they want, they can reduce supply and will affect Compal's output.

Compal Electronics expects that the factory in Vietnam will ship 1 million units a month by the end of 2009, reaching half of Compal's computers by 2013. Compal has major customers such as Dell, Hewlett-Packard, Lenovo and Acer.