- Shipments of notebook PCs sustained their momentum from the second quarter recovery through the third quarter, as market growth was fueled by peak season demand and advancements in wireless technology. Taiwanese notebook PC shipments rose 37.8% year-on-year and 18.7% sequentially to total more than 8.7 million units in the third quarter of 2004.
Aside from the traditional peak season boost, shipments of notebook PCs were also stimulated by continued price deflation. Key components such as display panels took a noticeable price dive in the third quarter, and Intel also lowered mobile CPU prices. End product prices were thus driven down, encouraging consumer spending. ASP (Average Selling Price) dropped from US$656 to US$653. Despite the drop in ASP, total shipment value maintained growth along with shipment volume. Total shipment value rose 36.7% year-on-year to reach the sum of US$5.7 billion.
First and second tier Taiwanese notebook PC makers performed well across the board in the third quarter, thanks to a flood of value-line orders from Toshiba and new rollouts from Dell and HP. Third tier players, on the other hand, gave a weak performance in terms of shipment volume growth.
The fourth quarter will bring holiday season demand and further market growth. Intel is carrying out another wave of prices cuts on its mobile CPU in October, which will positively impact notebook PC shipments. Taiwanese notebook PC shipment volume is forecast to grow by approximately 20.8% year-on-year and 12.3% sequentially in the fourth quarter 2004.