Alexa
  • Directory of Taiwan

Nomura downgrades Taiwanese contract laptop makers

Nomura downgrades Taiwanese contract laptop makers

Taipei, Aug. 26 (CNA) Japanese brokerage Nomura Holdings Inc. has turned conservative on three Taiwanese contract notebook computer makers because of looming structural changes to the market, according to a recent report. Nomura cut its stock ratings on Compal Electronics Inc. to "reduce" from "neutral," on Wistron Corp. to "reduce" from "buy," and on Pegatron Corp. to "neutral" from "buy," because of concerns that tablets will continue to eat into notebook sales and erode notebook margins. Nomura did, however, maintain its "buy" rating on Taiwanese PC brand Asustek Computer Inc. based on the company's market-share gains in China and emerging markets, its strong design capability and progress in margin expansion. Eve Jung, a Taipei-based analyst at Nomura, said she remains cautious on the outlook for the PC market in the second half of 2012 and believes that users may need time to familiarize themselves with the new user interface of the upcoming Windows 8 operating system. "We believe that 2013 could be a better year for the PC industry, but we expect tablets to continue to cannibalize notebook sales after the Windows 8 launch, which is likely to change the competitive landscape for PC OEMs," Jung wrote in the report. Nomura recently cut its forecasts for global PC shipment growth to a negative 1.0 percent from 5.5 percent for 2012 and to 6.8 percent from a previous 12.0 percent for 2013. The revisions reflected slowing end-demand amid deteriorating economic conditions and tablets' cannibalization of notebook sales, the brokerage said. Nomura also forecast that worldwide tablet shipments will reach 109 million units in 2012 and 150 million units in 2013, representing respective increases of 62 percent and 38 percent from the previous year. "With falling average selling prices for tablets and enhanced touch functions from Windows 8/Windows RT systems, we expect competition between tablets and notebooks to intensify," Jung said. "We think that PC OEMs with limited exposure to the tablet market will find it even harder to fight back in the next round of competition, especially with Microsoft Corp. scheduled to launch its 'Surface' tablets in October 2012," she added. (By Jeffrey Wu)


Updated : 2021-08-02 17:22 GMT+08:00