Tag: Inventec

Google cuts out the server middlemen

Posted on November 4, 2014 by - News

HP-MicroServerA report said that Taiwanese original design manufacturer (ODM) Quanta will supply search engine giant Google with its servers in 2015.

Google has long abandoned the habit of using “brand name” servers from the likes of Dell, HP or IBM/Lenovo.

The news, reported in Digitimes, confirms a recent survey saying that the ODMs, which often build machines that are then subsequently branded, are taking market share from the brand names.

It’s not just Google that is following this path.  Amazon, Facebook and Microsoft also buy their servers direct.  Quanta has benefited more from these changes in buying patterns because it has been quicker to realise the money involved than rivals such as Taiwanese company Inventec.

Until comparatively recently, Quanta’s entire business was building notebook machines, subsequently branded by others.  But the bottom has somewhat fallen out of the notebook business with the rise of tablets and smartphones.

Notebook sales down

Posted on January 2, 2014 by - News

framedwindowsIt is hardly a surprise given that one in two UK households now have a swipy style tablet, but independent research shows top X86 models aren’t exactly the flavour of the month.

According to Digitimes Research, both branded notebook vendors and top original design manufacturers (ODMs), recorded month on month drops of 12 percent and 11 percent in December.

Dell and Toshiba did better than the other bunch of brand names, with the former, in particular, showing a bit of a surge because Microsoft will deck long in the tooth but reliable Windows XP this spring.

The ODMs were hit because HP was hit – Quanta and Inventec supply Hewlett Packard with most of its notebook boxes.

While the X86 mob hope that enterprises are still likely to plump for Windows based boxes, there is evidence that large corporations are seriously contemplating the bring your own device route, which will further erode Intel market share.

Notebook shipments ramp in rollercoaster ride

Posted on September 5, 2013 by - News

ancient-laptopNotebook shipments appear to be recovering, albeit slightly, after several consecutive quarters of unparalleled awfulness. We are quite used to hideous numbers by now, but Digitimes Research  is reporting that notebook shipments of the top five brands grew by 22 percent, while the top three ODMs saw 11 percent of growth in August, compared to July.

HP saw the most growth, up 50 percent, while Lenovo and Acer saw their shipments grow by 25 and 20 percent respectively. Asus shipments dropped, while Dell’s appear to be stagnating.

Wistron outperformed other ODMs with 20 percent on-month growth in August, thanks to strong shipments from HP and Lenovo. Quanta and Inventec grew by more than 10 percent, Compal was saw some single-digit growth, while Pegatron’s shipments dropped due to lower orders from Asus.

A word of caution is advised. The upsurge has a lot more to do with seasonal trends than actual end-user demand. The notebook market still remains very weak and soft demand is expected over the next few quarters, if not years.

Tough times ahead for notebook ODMs

Posted on August 22, 2013 by - News

ancient-laptopSoft demand for notebook PCs and the relentless tablet juggernaut will continue to drag down shipments of Taiwanese ODMs in the current quarter and beyond, according to Bank of America Merrill Lynch. The bank said the outlook for the second half of 2013 remains challenging.

Shipments are expected to grow at a rate of two to three percent, which is very bad news for Acer and Asus. According to analysts, both companies suffered a 40+ percent plunge in unit sales last quarter in the European market. BoA Merrill Lynch said Acer and Asus are suffering from the rise of cheap tablets. Ironically, Asus was one of the pioneers in the Android tablet space and it produces Google’s 7-inch Nexus tablets, but it appears that more and more people are simply turning to even cheaper, white-box tablets.

Analyst Robert Cheng wrote in a note that Acer is likely to see losses over the next four quarter. He did not have many kind words for Asus, either.

“Asustek looks relatively fine, but notebook guidance is quite weak,” he said. Cheng added that Asustek’s “product mix” will become worse in the second half of the year.

As for contract manufacturers, Compal and Wistron should stay flat in the third quarter, while Quanta and Inventec still expect growth. Pegatron will get the worst of it. It is expected to lose some share and client orders, hence its notebook shipments will drop by 5 to 10 percent this quarter.

Notebook shipments hit new low

Posted on June 28, 2013 by - News

ancient-laptopContract manufacturers of notebooks had one of their worst quarters on record in Q1. According to IHS, they suffered a worse than expected quarter, with shipments to Apple and HP tumbling to the lowest level in three years.

Global shipments from ODMs in the first quarter totalled 33.2 million units, down 17 percent from 40.1 million in the fourth quarter of 2012.

The downturn was four to five percentage points than what IHS had originally forecast, prompting more concerns about the beleaguered industry. Taiwan based ODMs build notebooks for Apple, HP, Dell, Samsung, Lenovo, Acer, Asus and Toshiba.

The knock on effect hit ODMs hard. Quanta got the worst of it, with a 27 percent plunge in shipments. It lost its spot as the world’s top ODM to Compal as a result. Furthermore, Quanta apparently received “conservative” orders from Acer, Asus, HP and Apple during the quarter. Compal saw a quarterly decline of 5 to 7 percent and it weathered the storm a bit better than other ODMs, thanks to stable shipments to Dell and Lenovo.

Wistron’s drop in shipments was 16 percent, but it still managed to rank third. Inventec saw a 9-percent drop and it ended in fourth spot, while Pegatron wasn’t as lucky. It saw its shipments plummet 21 percent, finishing the quarter in fifth spot.

There’s light at the end of the tunnel, though. ODM shipments are expected to improve in the second half of the year. The key drivers of growth will be cheap ultrathin PCs with touchscreens, along with new models based on Intel Haswell parts. In addition, Microsoft will lower the licencee fee for Windows for notebooks with a screen size of up to 11.6 inches, as we reported from Computex a few weeks back. Better late than never.