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Compal to double smartphone shipments in 2015

Compal to double smartphone shipments in 2015

Taipei, Jan. 17 (CNA) Taiwan-based Compal Electronics Inc. (??), the second largest contract notebook computer maker in the world, has forecast that its smartphone shipments for 2015 will double from a year earlier as part of its efforts to increase the percentage of non-notebook computer devices in its product portfolio. In the company's "weiya" dinner, a traditional year-end banquet held ahead of the lunar calendar, Friday, Compal President Ray Chen (???) said that the company's smartphone shipments could hit 40 million units in 2015, up from 20 million units in 2014. In addition to its efforts to secure more orders on smartphone assembling, Chen said, Compal will boost its shipments in tablet computers to raise the weighting of non-notebook computer devices to 30 percent of its total sales this year, up from 23 percent a year earlier. Compal is one of the major notebook computer suppliers in Taiwan which have diversified their product portfolio by adding mobile devices, in particular smartphones, in a bid to offset the impact from a slowdown in the global personal computer market. In a recent research note, Nomura Securities said that smartphones and tablets are expected to serve as a driver to Compal's growth in 2015, "given the increasing order allocation by existing clients and new customers on the smartphone side." The Japanese brokerage has issued a "buy" rating on Compal shares. Compal rolls out not only smartphones and tablets but also TVs, servers and automotive electronics devices in its non-notebook computer product mix. Chen said that along with notebook computers, its total hardware shipments could hit 100 million units in 2015, up from 76 million units recorded in 2014. Last year, Compal shipped 43 million notebook computers, up about 10 percent from 2013, while shipments of non-notebook computer devices rose at a much faster rate of about 68 percent year-on-year to some 32.8 million units. Chen said since smartphones and tablets command a higher gross margin, Compal is expected to see its bottom line improving this year. In the first nine months of last year, Compal's earnings per share stood at NT$0.62 (US$0.02), while it just broke even over the same period in the previous year. As for its server division, Chen said that Compal will add 300-350 research and development specialists in the second quarter of this year to strengthen the operations. Chen said although the server division is likely to incur losses this year, extending from last year, it could turn a profit next year. Chen said that Compal has been gearing up to develop wearable devices to tap growing applications in the Internet of Things -- the trend of connecting more devices to each other and to the Internet. (By Han Ting-ting and Frances Huang)


Updated : 2021-09-26 10:31 GMT+08:00