When it comes to the manufacture of notebook computers,
Taiwan is king these days. Compal Electronics, Inventec, Quanta Computer and
Wistron have seen their total share of global production rise from just over
54% last year to more
than 70% this year. The companies produce notebooks for some of the biggest
names in the industry including Dell, HP and Lenovo -- as evidenced by an earlier DailyTech article.
The combined strength of the top four Taiwanese
manufacturers has come at the expense of the smaller Tier 2 competitors.
Companies like Mitac, Uniwill and Twinhead are all but being pushed out of the
market as they suffer from declining sales and high inventory. DigiTimes
The concentration of
production is expected to continue through 2007 as the top-four makers are now
controlling nearly all notebook orders from the world's top-ten notebook
vendors, who are also moving to centralize their operations while keeping a
steady relation with their existing suppliers on production concerns over
economy of scale and diversification of risks, the sources indicated.
Mobile Alliance (MA), which consists of Asustek, Compal, FIC, Quanta and
Wistron, is also threatening Tier 2 manufacturers. The MA looks to boost sales
in emerging markets, lower production and after-service costs, make better use
of production channels and push for Intel’s Interchangeability
Initiative. If the MA is successful, it could be possible that we'll see
some consolidation in the lower ranks while the Tier 1 manufacturers continue
to solidify their dominant positions in the market.