HP Chooses 4 Taiwanese Manufacturers to Make 2004 Notebooks

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Hewlett Packard (HP) has decided on the manufacturers for eight new notebook models to be offered during the second half of 2004 and the first half of 2005, with the four Taiwanese makers Inventec, Quanta Computer, Wistron, and Compal Electronics sharing the big pie, according to the four companies.

The eight new models, ranging from mainstream business-use models through SOHO and consumer models and including Tablet PC, are all brand-new designs. Total monthly deliveries of the new models will be 200,000-250,000 sets, with shipments to begin in the third quarter of 2004.

Inventec, Quanta, and Compal are already making notebooks for HP, while Wistron is a newcomer for 2004. The four companies, in order to compete for HP s OEM orders, reportedly offered very aggressive pricing and sacrificed profitability.

Before HP s merger with Compaq, Arima Computer, another Taiwanese notebook manufacturer, was a HP supplier, but it gave up OEM production because of the price pressure. This time, Wistron s win implies that Arima is unlikely to regain OEM orders from HP.

For each month in the first half of 2004, Taiwanese OEM makers will ship 700,000-800,000 existing notebook models to HP. With the new 2004 orders, Taiwan s OEM production for HP will exceed 10 million notebooks in 2004. HP s procurement of notebooks and other IT products in Taiwan will reach US$16 billion this year and rise to an estimated US$20 billion next year.

According to IDC, HP sold 1.74 million notebooks in the third quarter of this year, exceeding Dell s 1.66 million sets and hiking year-on-year by 60%.

Model breakdown by company for HP s 2004 orders

Company

Model description

Inventec

2 mainstream business models with monthly shipment of 100,000-150,000 sets

Quanta

Four models: 17 and 15.4-inch wide-screen, slim 12.1-inch, standard 14.1/15-inch

Wistron

15-inch SOHO model

Compal

12.1-inch Tablet PC

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