Taiwanese PC Maker on Verge of Sales Push Into U.S. and China
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Acer, the Taiwanese personal computer maker, has appointed an Italian to replace its current president, a move that underscores its raging global ambitions.
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(InfoWorld) - News coming out the chip sector has been great so far this week, but analysts warn that economic woes such as the housing mess might still spoil the party. The consensus among analysts appears to be that corporate and personal spending on technology products will be hurt by the housing issues in the U.S., but nobody knows how bad the impact will be, according to Peter Sutton, head of research at CLSA Asia-Pacific Markets in Taipei. Demand for technology products, especially computers and mobile phones, in the rest of the world is going strong, he said, but even that demand could pull back in the event of a U.S. slowdown because many developing countries depend on exports to the U.S. for income. By the end of this year, people should know how bad the loan and home foreclosure situation will be, according to Sutton. The housing market in the U.S., he said, is expected to bottom in the first quarter of next year. The fear is that the housing issues could hurt consumer spending at some point later this year, but so far the technology industry isn't showing any signs of trouble. The flow of good news started in Asia on Monday with the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC), reporting record high sales in August and revising up its third quarter financial guidance. The company, considered a bellwether for the overall tech industry because of the variety of gadgets it makes chips for, said consolidated sales in August rose 10 percent year-over-year to NT$30.02 billion (US$907.0 million), beating its previous record of NT$27.96 billion from July of last year. TSMC also predicted its third quarter revenue will likely hit between NT$87 billion to NT$89 billion, higher than a previous forecast of NT$85 billion to NT$87 billion, and said its gross margin would come out at the top end of expectations. Some customers asked TSMC to ship some chips earlier than expected, a spokesman for the company said, but the company won't comment on how that might impact the fourth quarter. Taiwanese chip designer MediaTek followed up TSMC's news, announcing an agreement to buy certain telecommunications chips products from Analog Devices Inc., of Norwood, Massachusetts, for US$350 million in cash. The deal itself isn't huge, but merger and acquisition activity normally takes place when companies see bright prospects for the future, and MediaTek is looking to use the acquisition as part of its mobile phone chip strategy. Among the products the company acquired is a chipset used in TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) basebands and radio receiver products, which will help it increase its presence in its main market, China. TD-SCDMA is the 3G (third-generation) telecommunications standard being pursued in China. Positive corporate news for chip makers didn't stop in Asia. As the work day opened in the U.S., technology industry watchers were treated to theÂ long-awaited launch of Barcelona, the new quad-core processors from Advanced Micro Devices. The Sunnyvale, California company announced a number of companies are already using the chips, including IBM, Sun Microsystems, Dell, and Gateway. The world's largest chip maker capped Monday with the biggest news of the day.Â Intel raised its third quarter revenue forecastÂ to between US$9.4 billion and US$9.8 billion from a previous range of US$9.0 billion and US$9.6 billion, and said its gross margin would be at the upper end of guidance due to stronger than expected global demand for computing products. Despite the strong chip news and outlook for the current quarter, which ends Sept. 30, the future remains uncertain. "Near term data shows little evidence of order cutbacks in the tech supply chain," said Warren Lau, chip analyst at Macquarie Research Equities. "But having said that, the question remains: will the sky come crashing down because of the meltdown in the U.S. subprime markets?"
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(InfoWorld) - Shares of Asian PC makers are finally shaking off their summer doldrums as back-to-school sales give them a boost and the upcoming launch of Microsoft's new Vista OS improves their longer term prospects. A buying binge on stock of Taiwanese PC maker Acer started early this week after it was upgraded by Merrill Lynch & Co.Â and a few other large investment banks. The firms noted that after sluggish sales in the first half of the year,Â demand for PCs is on the rise. TheÂ microprocessor price warÂ between Intel and Advanced Micro DevicesÂ (AMD) saw the price on some desktop chips halved, lifting PC demand, analysts say. Microsoft's new OS is expected to come out on time and give the PC market an additional long term boost. "The PC replacement cycle should take place gradually following Microsoftâs launch of its new operating system, Vista, in the first half of 2007," said Daniel Chang, computer industry analyst at Macquarie Research Equities, in a report on Thursday. Acer's shares were also boosted this week after it reported a better-than-expected 36 percent increase in second quarter net profit to NT$3.08 billion (US$93.59 million). It's shares ended up 25 percent for the week, at NT$53.5, on the Taiwan Stock Exchange. Acer's main rival in Asia, Lenovo Group, also saw its stock rise. The company'sÂ U.S.-listed shares increasedÂ 11.2 percent to US$8.45 for this week, as of its close on Thursday. By comparison, Dell and Hewlett-Packard have been laggards. Dell shares are up 3.9 percent so far this week to end at US$22.60 on Thursday, while HP had gained 3.8 percent to US$36.56 over the same time. One reason for the difference in share performance is that Acer and Lenovo stock fell further this year than their U.S. rivals due to PC market concerns andÂ company-specific issues, analysts say, so it's no surprise the rebound has lifted them higher. Another reason Dell and HP have underperformed their Asian peers recently is because U.S. investors are concerned about the economy, including consumer demand and the likelihood of further interest rate increases. Although very little conclusive data is out for U.S. PC sales right now, analysts say demand in Asia is strong, and Europe is heating up. Henry King, executive director of technology research for Goldman Sachs (Asia), noted in a report on Wednesday that strong PC component demand in Europe over the past few weeks should help allay concerns over possible U.S. weakness. "Besides, we expect more Europeans to come back from summer vacations in the next few weeks, so sell thru data is likely to continue to trend up in September," King said. Another factor hurting shares of PC makers this year has been cutthroat price competition. But stronger market demand should ease price competition, analysts say, as should lower costs for microprocessors. In short, the seasonal demand from back-to-school and back-from-vacation sales going on now should extend for quite a while as users continue buying when Vista launches. The strong, steady demand should allow PC makers to charge reasonable prices, increasing their profit margins and making investors happy.
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TAIPEI, Taiwan -- Taiwan personal computer vendor Acer Inc. expects its computer shipments to increase 30 percent to 40 percent this year, a reduction from previous sales forecasts.
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(InfoWorld) - The surest sign marketing hype surroundingÂ Apple's iPhoneÂ has outdone itself is that a small island on the Pacific rim is abuzz over the device, despite the fact it won't be on sale here until next year at the earliest. Part of the reason for the excitement is the number of technology savvy users in Taiwan who want to get their hands on one. The most popular Internet auction site on the island, run by Yahoo Taiwan, boasts six different iPhone sellers. One auctioneer is offering the smartphones at NT$32,000 (US$975), on pre-order. At a rival Web auction site, Ruten.com.tw, one seller has a 4GB iPhone for NT$25,000. Most of the sellers are up-front about the fact users may not be able to use the iPhone for phone calls in Taiwan, for now. "You may only be able to use the camera and music player function of the iPhone," writes one seller. That may not deter buyers. Not only is the iPhone viewed as a status symbol, many Taiwanese often travel to the U.S. for business, and a number of people own second homes in places such as California. They could sign an AT&T iPhone service agreement on a trip to the U.S. The popularity of the Apple product is easy to see every day, in newspaper headlines and on the cover of magazines, including Business Next, which says a lot about the other reason the handset is so popular in Taiwan. Taiwanese companies play a vital role in the production of the device, and rumors of which company is making what component on the iPhone are moving stock prices daily in Taiwan. Apple is sourcing a number of parts from the island, and has asked iPod manufacturer Hon Hai Precision Industry Co.Â to assemble the iPhones in China, analysts say. In fact, the stock market boom that has taken hold in Taiwan recently has been attributed partly to iPhone hype. Stock traders hope the iPhone sells millions of units, because companies on the island stand to win from every handset sale. Largan Precision Co., for example, supplies camera lenses and modules for the iPhone, according to CLSA Asia-Pacific Markets in Taipei. Foxconn Technology Co.Â is a provider of metal casing for the handsets, while Unimicron Technology is supplying printed circuit boards for the device and Cheng Uei Precision Industry is making its chargers and cables, the investment house says. The stock prices of many of these have soared in the months leading up to its launch, but are in a holding pattern now as investors wait to see how the iPhone fares in the market. Estimates of iPhone sales vary widely. Citigroup Research, a division of Citigroup Global Markets, estimates iPhone sales will reach 3.5 million in 2007 and 8.5 million in 2008. That's ahead of Apple's own prediction of 10 million over the same period. Deutsche Bank is even more positive about the iPhone. The investment firm expects 7.5 million of them to ship this year and 12 million in 2008, according to a report dated June 22. An even more optimistic forecast comes from financial services company Credit Suisse, which predicts iPhone shipments will reach 5 million this year and 15 million next year. "Apple's iPhone, expected to launch at AT&T on June 29, is clearly the most widely anticipated product the industry has seen for many years, potentially ever," wrote Credit Suisse analyst Michael Ounjian, in a June 5 report on the device. Lehman Brothers offered a more conservative estimate, saying Apple's own 10 million figure "may be difficult to reach" but that the figure "is achievable" in a June 21 report. The investment house believes Apple will start offering the iPhone in Europe sometime in the last three months of this year, and that it will begin sales in Asia in 2008. Apple has not said when it will start shipping the iPhone overseas. The iPhone, a smartphone with built-in iPod music player functions, goes on sale in the U.S. at 6 p.m. Friday. Apple is offering two models, a 4GB model costing US$499 and an 8GB model at US$599. Users will have to sign a two-year contract with AT&TÂ for phone service. Â
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Taiwanese PC maker purchases struggling American firm in an effort to increase its U.S. market share.
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Since January of this year, Dell Computer has been tailoring its sales model to fit changing market dynamics. Its very successful direct sales approach is simply not the best way to get through to certain markets. China is a shining example of this, and Dell announced today that it will distribute PCs through Gome, China's largest consumer electronics retailer.
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By George Hsu  A plan to give laptop computers to 100 million poor children is enriching parts makers more than the principal manufacturer, prompting share prices of Taiwanese suppliers to surge.
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After bringing the fight to North American shores last month, the world's top console makers have slowly been releasing their wares around the globe, hoping to gobble up customers the way their products did in the United States over Thanksgiving weekend.
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HONG KONG - China&#39;s consumer electronics industry is projected to reach $49.6 billion in sales this year, growing by more than 20 percent annually to reach $94 billion in 2007, according to a report from Global Sources Ltd.
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PC maker sees potential profit at the end of the tunnel, boosted by new sales strategy.
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By Jason Tan  COMPUTEX, the world's secondlargest IT trade fair, ended its five- day show in Taipei last week, ushering in a total of 33,000 foreign buyers, up 10 per cent from last year.
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Sales will start in Chinaâs biggest chain of electronics stores next month and expand to more stores early next year, a Dell executive said.
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Strong demand from emerging markets and the introduction of more low-cost laptops will boost Intel&#39;s sales in Asia during 2008, but company executives are keeping a close eye on the U.S. economy for signs of a slowdown.&quot;Overall, I&#39;m optimistic about growth in Asia, but it would be imprudent not to be cautious and mindful of the economic situation in the U.S.,&quot; said Navin Shenoy, general manager of Intel&#39;s Asia-Pacific operations, during a telephone interview.Intel&#39;s Asia-Pacific sales include chips sold for use in Asia as well as products that are built into computers for export to other regions. As a result, regional executives are closely watching what happens in the U.S., where concerns are mounting that the economy is headed for a recession.&quot;The export business that&#39;s dependent on the United States might see a bit of a slowdown, but the bulk of the growth is coming from [Asian] consumption. The consumption that we see across Asia-Pacific is quite strong and I see no impact or slowdown there whatsoever at this point in time,&quot; Shenoy said.&quot;But we&#39;re going to watch it. We&#39;re going to watch it carefully,&quot; he said.Analyst firm IDC expects Asian PC shipments to grow 16.7 percent this year, compared to an increase of 3 percent in the U.S.&quot;We&#39;ve pretty much been assuming no major impact [on PC demand] from the subprime crisis in the U.S.,&quot; said Bryan Ma, director of personal systems research at IDC Asia-Pacific, adding that the market research firm is monitoring economic developments in the U.S.Intel is coming off a strong fourth quarter, despite being squeezed somewhat by lower-than-expected flash memory prices. Strong processor demand during the period helped push Intel&#39;s Asia-Pacific revenue to US$5.3 billion, a quarterly record and about half of the company&#39;s total sales.&quot;Demand on the CPU side was strong. We set a record in terms of CPU shipments [and] we set a record for chipsets,&quot; Shenoy said.Most of Intel&#39;s processor revenue during the period came from 65-nanometer chips. The first chips from Intel&#39;s 45-nanometer processor lineup, called Penryn, were introduced in November and made a &quot;nominal&quot; contribution to Asia-Pacific revenue during the fourth quarter, Shenoy said.That contribution will increase rapidly over the next several months, with Intel&#39;s shipments of 45-nanometer processors to surpass those of 65-nanometer chips during the third quarter, he said.Two upcoming Intel products, Silverthorne and Canmore, should also make their presence felt in Asia this year, Shenoy said.Silverthorne, which is produced using the same 45-nanometer manufacturing process, is the first chip designed by Intel to be used in low-cost laptops and will be available during the second half of the year. Currently, Intel offers a version of its aging Celeron M processor for these types of machines, such as Asustek&#39;s popular Eee PC.Silverthorne, which is intended to be inexpensive and easy on battery life, will appear in low-cost notebooks that should spur faster growth in Asian demand for mobile computers, Shenoy said.The other chip that Intel expects to see do well in Asia is Canmore, a system-on-chip announced during the Consumer Electronics Show that combines a processor with graphics and high-definition video capabilities. Designed for set-top boxes and other consumer electronics, Canmore is due during the second half of this year.&quot;There are tremendous opportunities for a product like that in countries like Taiwan and Korea,&quot; Shenoy said.One technology that isn&#39;t expected to make much headway in Asia this year is WiMax.Apart from South Korea, where WiMax is already in commercial use, the wireless broadband technology hasn&#39;t caught on much in Asia. As a result, WiMax products will not see widespread adoption in the region until 2009, Shenoy said.
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SUZHOU, CHINA -- Taiwanese companies make most of the IT hardware produced in China for the global market, while most Chinese hardware companies are focused on making products for domestic consumption. But that will change in coming years as Chinese companies look to produce more of the world's IT hardware, according to the chief executive of Taiwanese electronics maker BenQ Corp.
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Chinese companies are starting to pursue North American and European electronics and consumer brands as their government pushes them to build global sales forces for their low-cost products.
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IBM, the company that invented the PC, has put its PC business up for sale, according to the New York Times, and is in discussions with China&#39;s largest maker of personal computers, Lenovo Group (formerly Legend Group), and at least one other potential