The notebook PC market sustained a tenor of growth from the third quarter into the fourth quarter of 2004 on the back of holiday sales. Taiwanese notebook PC shipments reached approximately 10.4 million units in the fourth quarter, posting year-on-year growth of 27.9%. While growth was encouraged by holiday demand and fierce price competition between brand-name vendors, a shortage in the supply of key components such as CPUs (Central Processing Unit) and chipsets proved a mitigating factor that restrained growth to some extent. As a result, sequential growth in shipment volume was more modest at 18.4%.
In the fourth quarter, falling prices on key components and price competition between brand-name vendors hindered growth in shipment value, while ASP (Average Selling Price) also continued to slide. Nevertheless, with overall production at a high level, shipment value managed to post gains. Total shipment value for Taiwanese notebook PC makers rose by 23.4% year-on-year to reach nearly US$6.6 billion.
There were no changes among the first tier of Taiwanese notebook PC makers in the fourth quarter; the share of shipments held by the first tier climbed from 66% in the third quarter to 68% in the fourth. Second tier makers also performed well thanks to an upswing in orders from brand-name vendors, especially Japanese players.
The first quarter of the year typically marks the beginning of the slow season for the notebook PC market. With the shortage of key components expected to persist, and with Taiwanese makers going on vacation for Chinese New Year, the scale of shipments is anticipated to shrink by 14% to 15% sequentially in the first quarter of 2005. However, shipment volume is likely to rise by 28.2% year-on-year.
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