Taiwan's notebook PC industry shipment to reach over 110 mn units in 2008

In the first quarter of 2008, notebook PC demand remained strong in regions
around the world, except for North America, which experienced the effects of the
subprime mortgage crisis. Notebook PC demands was particularly strong in China

According to MIC (Market Intelligence Center, Taiwan), shipment volume of the
Taiwanese notebook PC industry for 2008 is expected to reach over 110 million
units.

This can be due to the expanding consumer market segment for notebook PCs and
strong demand in emerging markets. However, the insufficient production capacity
of battery cell suppliers in the second quarter could have a negative impact on
shipments. Also, the subprime mortgage crisis in North America could spread to
the Western European market, beginning from the end of the second quarter of
2008, while the replacement effect of low-price notebook PCs on mainstream
notebook PCs is expected

to emerge in the second half of 2008.

In the first quarter of 2008, notebook PC demand remained strong in regions
around the world, except for North America, which experienced the effects of the
subprime mortgage crisis. Notebook PC demands was particularly strong in China.

"Some shipments were affected in the first quarter due to production
shortages caused by the fire at LGC's battery cell factory in March this year,"
said Nicole Huang, Industry Analyst, MIC. "However, as PC brands raised their
shipment targets, they strengthened their relationships with key component
suppliers, while battery makers and ODM (Original Design Manufacturing) makers
still had sufficient inventory to meet notebook PC demand in the first quarter
of 2008. PC brands were therefore able to approach their shipment targets in the
first quarter," Huang added. Taiwanese notebook PC shipment volume is estimated
to have reached 25.1 million units in the first quarter of 2008, up 35.6 percent
YoY.

Benefiting from high-end models launched by several PC brands in the first
quarter, ASP decline of the Taiwanese industry was not dramatic, slipping from
$522 in the previous quarter to $518 in the first quarter. Taiwanese notebook PC
shipment value is estimated at $12.99 billion in the first quarter, up 26.9
percent year-on-year. Looking ahead to ASP development in 2008, affected by the
increasing prices for raw materials, China's new Labor Contract Law and new tax
laws, production costs are rising, and manufacturers have stated that these
developments will be reflected in prices. In addition, as shortages of notebook
PC batteries are expected to be an issue into the second quarter, coupled with
rising prices, notebook PC ASP is expected to rise again in 2008.

Source: www.computextaipei.com.tw