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Compal to rely more on chips sold by AMD

Compal to rely more on chips sold by AMD

Compal Electronics Inc., the world's second-largest maker of notebook computers, said it will increase shipments of laptops that use Advanced Micro Devices Inc. processors, driven by customers' demand for lower prices.
Processors made by Advanced Micro will be used in 30 percent of notebooks shipped by Compal, compared with 20 percent last year, said Jimmy Zhang, the Taipei-based company's head of investor relations at Compal.
Advanced Micro, based in Sunnyvale, California, is trying to increase its 21.6 percent market share in the US$32 billion computer chip industry that's dominated by Intel Corp. by offering processors of equivalent performance at lower prices.
"Consumers don't care about which processor is inside, they just think of price," which is Advanced Micro's strength, Zhang said. He estimates consumer purchases now account for half of notebook sales from 30 percent a few years ago. Corporate sales make up the other half.
Vendors such as Acer Inc. and Hewlett-Packard Co. are turning to Advanced Micro to add variety to their product lines and help lower prices, Zhang said. In July, Santa Clara, California-based Intel cut prices as much as 60 percent in response to price and performance competition from Advanced Micro.
Consumers are more price-sensitive than corporate customers, which are more loyal to preferred processor brands, he said.
"Prices of notebook computers have come down and are almost the same price as desktops, so consumers are buying more notebooks," giving them more influence in the market, he said.
Compal expects to increase shipments of notebook computers 48 percent to 14.5 million units this year from 9.8 million units in 2005, Zhang said.
Quanta Computer Inc., the world's largest notebook maker, and Wistron Corp., the No. 3, will increase their shipments of notebooks using Advanced Micro processors, both companies have said, without providing details.


Updated : 2021-06-23 14:40 GMT+08:00