Alexa
  • Directory of Taiwan

Nomura cautious about PC sector amid Intel's sales revision

Nomura cautious about PC sector amid Intel's sales revision

Taipei, Sept. 10 (CNA) The outlook for the global PC hardware sector remains challenging following U.S. chip maker Intel Corp.'s revision of its quarterly sales forecast, Japanese brokerage Nomura Holdings Inc. has said in a research note. Hurt by slowing demand, Intel on Sept. 7 cut its third-quarter revenue outlook to US$13.2 billion, plus or minus US$300 million, down from its previous estimate of between US$13.8 billion and US$14.8 billion. Although most investors know that demand in emerging markets is slowing down, what surprised the market is that Intel predicted declining third-quarter demand in the enterprise PC market, which has been posting stable quarterly growth so far this year, Nomura said Sunday. Reflecting its concerns about the weaker-than-expected demand, Nomura cut its global PC shipments annualized growth forecasts for 2012 to minus 1 percent and for 2013 to 7 percent, from previous estimates of 5.5 percent and 12 percent. "While many investors still hope that Microsoft's Windows 8 official launch could help boost sales in the fourth quarter of 2012 for the PC supply chain, we retain our conservative view of the PC industry," Nomura analyst Eve Jung said in the note. "We are concerned that tablets will continue to cannibalize notebook sales in the longer term," she wrote. The main reasons for Nomura's cautious view include the improving functions of Google Inc.'s Android and the Windows 8 systems for tablets, and the lower prices of tablets compared with traditional notebooks, Jung said. In addition, Intel's slow promotion of thin light ultrabooks could also negatively impact the overall growth of notebook sales, Jung said. On stock implications, Nomura said there is higher risk of further downward revision by notebook original design manufacturers on their third-quarter shipment guidance. The brokerage kept its "reduce" stock rating on Taiwan-based Compal Electronics Inc. and Wistron Corp., citing slowing notebook sales and likely further margin pressure in the second half of 2012. Nomura retained its "neutral" rating on Quanta Computer Inc., the world's largest contract laptop maker, given Quanta's slowing growth momentum from Apple's notebook business. For PC brands, Nomura maintained its "reduce" rating on Acer Inc. based on the Taiwanese company's continued low exposure to the tablet market and slow progress in improving margins and regaining market share. Meanwhile, Nomura said slowing enterprise demand could drag on Chinese PC vendor Lenovo Group's overall margin performance, as margins in the commercial segment are higher than in the consumer segment. The Japanese brokerage, however, was optimistic about Asustek Computer Inc., citing the Taiwanese company's growing market-share gains in China and emerging markets, ability to benefit from rising tablet demand because of its design strengths, and continued margin expansion. (By Jeffrey Wu)


Updated : 2021-10-27 00:01 GMT+08:00