AI PCs will bring new opportunities to component manufacturers. Battery module manufacturer Simplo stated that due to AI PCs requiring larger battery capacity, the average selling price (ASP) will increase as well. This is expected to become apparent in the fourth quarter of 2024 and growth momentum is expected to become stronger in 2025.
Simplo stated during an investor conference that the third quarter is peak season. Driven by new products including AI PCs, performance in the latter half of the year is expected to be better than that of the first half. Simplo's consolidated revenue for the first half of the year is NT$36.582 billion (approx. US$1.1 billion) with a year-over-year decrease of 6.43%. Gross margin is 13.3%; operating income is NT$2.61 billion with a year-over-year decrease of 19.62%; net profit is NT$2.374 billion with a year-over-year decrease of 8.87%.
2024 is said to be the first year for AI PCs. Qualcomm, Intel, and AMD processors now all support Microsoft's Copilot+ PCs, and other brands have also released related products. Market research agencies estimate that AI PC shipments will surpass 40 million units in 2024 and have a huge increase in 2025.
Simplo is also actively setting up for the energy storage market. It stated that energy storage system batteries (ESS batteries) also consist of stacking battery modules. However, the battery cell source is different, so Simplo will need to spend time cultivating the market and supply chain. It anticipates ESS batteries to contribute to revenue in 2025.
