With the lingering pandemic spurring hybrid work, growth in tablet shipments into India remains high. New competitors such as Xiaomi may further encourage more consumer choices and demand in the market where Lenovo, Apple, and Samsung Electronics lead.
Brand notebook vendors have cut back orders with suppliers in 2022, particularly orders for Chromebooks, and have also revised downward annual shipment targets, according to sources at IC design houses.
Taiwan's notebook ODMs Quanta Computer and Inventec both have released positive outlook for their shipment performance in the second half of the year, though some market observers and brand vendors believe the notebook market may be going downhill amid dwindling COVID-driven demand.
Pegatron expects its notebook shipments to decline 5-10% sequentially in the second quarter, while shipments of its desktop PCs and motherboards will fall 30-35% on quarter. Non-PC product shipments will also fall sequentially during the quarter.
Taiwan makers produced over 90% of the notebooks worldwide in 2008. The top-five notebook makers - Quanta Computer, Compal Electronics, Wistron, Inventec, and Asustek Computer - contributed 88% of the shipments from Taiwan.
Overall notebook production in China, which mainly takes place in major coastal cities in eastern China, is unlikely to return to pre-lockdown levels until July, according to industry sources. Insufficient manpower and logistical problems were cited as the main challenges.
Quanta Computer's production capacity for MacBook Pros at its Shanghai, China site so far still has not been fully restored and consumers who place orders for Apple notebooks now may not receive the devices until mid-July, according to sources from the upstream supply chain.
Elan Microelectronics, a supplier of notebook touch ICs, has said the COVID-19 lockdown in China's Kunshan has affected its April revenue. It plans to disperse outsourced production to more cities while anticipating growth driven by demand for business notebook chips.
China's COVID lockdowns and restrictions have little impacted order placements from clients despite causing shipment delays, but supply chain players may not be able to fully resume order fulfillment momentum until after their manufacturing operations return to normal in the third quarter of the year, according to sources at PC component makers.
HTC saw its net losses narrow substantially on-year in the first quarter of 2022, but gross margin grew for the 18th consecutive month to 37.8%, thanks to robust sales of its VR and other products for the metaverse.
Taiwan-based industrial PC makers including Advantech, Ennoconn, Aaeon Technology, iBase Technology, Axiomtek, Posiflex Technology and Avalue Technology are poised to enjoy impressive sales growth this year, as infrastructure activities are resuming, according to industry sources.
Quanta Computer's plant in Shanghai, China is gradually resuming its production of Apple's MacBook products with order pull-ins also slowly turning strong, according to sources from the upstream supply chain.
Samsung Electronics' foundry business achieved its highest-ever first-quarter sales, thanks to solid demand from all applications and improvements in the yields of the advanced process, the vendor has claimed when announcing its financial results for the first quarter of 2022.
Primax Electronics has estimated Kunshan's lockdown this month will affect up to 5% of its monthly revenue. Nonetheless, it expects a double-digit growth in the second quarter with new product portfolio, while continuing to expand its production site in Thailand.
Taiwan-based Parade Technologies, a supplier of mixed-signal ICs for display and high-speed interface standards used in computers, consumer electronics and display panels, remains optimistic about its sales prospects for 2022 despite growing market uncertainties.
A worsening shortage of notebook components due to Kunshan's COVID lockdown extension is prompting ODMs to scale down their output mainly in Chongqing and Chengdu by 40-50%, according to industry sources.