Notebook ODMs have resumed their production in China, but face the possibility of a lack of components starting in March if their suppliers continue to be prevented from going to work by the coronavirus outbreak. Quanta Computer has started volume production at a new assembly plant in Taiwan to meet urgent needs from clients, but components shortages remain an issue. Now Digitimes Research estimates that global notebook shipments will fall 29-36% in first-quarter 2020, much steeper than previously thought.
Notebook ODMs running out of components: Taiwanese notebook ODMs have already resumed assembly operations in China, but risks of supply chain disruptions in March are mounting, as inventories of many components will run out by end-February with many of their supporting suppliers still awaiting approvals from local governments to reopen their plants, according to industry sources.
Quanta steps up notebook production in Taiwan amid outbreak: Taiwan notebook ODM Quanta Computer is reportedly moving to accelerate volume production at its new assembly lines in northern Taiwan to fulfill rush shipments to US brand vendors amid the coronavirus outbreak, according to industry sources.
Global notebook shipments for 1Q20 to plunge 29-36% sequentially on epidemic, says Digitimes Research: Global notebook unit shipments for the first quarter of 2020 are estimated to experience a larger sequential fall of 29-36% than 17% projected earlier, as severe labor and components shortages and stagnant logistics arising from the coronavirus outbreak are derailing supply chain in China, which commands over 90% of global notebook production, according to Digitimes Research.