According to MIC (Market Intelligence Center, Taiwan), an ICT industry research institute based in Taipei, due to the expanding consumer market segment for notebook PCs and strong demand in emerging markets, shipment volume of the Taiwanese notebook PC industry for the full-year 2008 is expected to reach over 110 million units.

However, the insufficient production capacity of battery cell suppliers in the second quarter could have a negative impact on shipments. Also, the subprime mortgage crisis in North America could spread to the Western European market, beginning from the end of the second quarter of 2008, while the replacement effect of low-price notebook PCs on mainstream notebook PCs is expected to emerge in the second half of 2008.

In the first quarter of 2008, notebook PC demand remained strong in regions around the world, except for North America, which experienced the effects of the subprime mortgage crisis. Notebook PC demand was particularly strong in China.

"Some shipments were affected in the first quarter due to production shortages caused by the fire at LGC's battery cell factory in March this year", according to MIC Industry Analyst Nicole Huang. "However, as PC brands raised their shipment targets, they strengthened their relationships with key component suppliers, while battery makers and ODM (Original Design Manufacturing) makers still had sufficient inventory to meet notebook PC demand in the first quarter of 2008. PC brands were therefore able to approach their shipment targets in the first quarter." Taiwanese notebook PC shipment volume is estimated to have reached 25.1 million units in the first quarter of 2008, up 35.6% year-on-year.

Benefiting from high-end models launched by several PC brands in the first quarter, ASP decline of the Taiwanese industry was not dramatic, slipping from US$522 in the previous quarter to US$518 in the first quarter. Taiwanese notebook PC shipment value is estimated at US$12.99 billion in the first quarter, up 26.9% year-on-year. Looking ahead to ASP development in 2008, affected by the increasing prices for raw materials, China's new Labor Contract Law and new tax laws, production costs are rising, and manufacturers have stated that these developments will be reflected in prices. In addition, as shortages of notebook PC batteries are expected to be an issue into the second quarter, coupled with rising prices, notebook PC ASP is expected to rise again in 2008.

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