According to research of the Taipei-based Market Intelligence & Consulting Institute (MIC) conducted as part of the ITIS project, benefiting from the year-end peak-season effect in North America and Western Europe, netbook PC shipment volume continued to grow in the fourth quarter of 2009. Shipment volume of the Greater Chinese netbook PC industry (mainly consisting of Taiwanese ODM companies) reached 7.96 million units in the fourth quarter, up 14.4% sequentially and 52.2% year-on-year. The industry's total shipment in the full-year 2009 reached 24.95 million units, up 125% compared to 2008. Shipment value of the industry in 2009 grew 114% compared to 2008, reaching US$5.4 billion.
In order to avoid inventory issues similar to those that emerged in early 2009, brand-name vendors and channel distributors were especially careful in terms of their inventories. However, inventory levels were low, and with end-market demand stronger than expected, some contract manufacturers increased production in December, thereby pushing netbook PC shipment in the fourth quarter. Meanwhile, the market launch of new products equipped with Windows 7 also created market buzz, positively impacting netbook PC shipment.
As for manufacturer volume rankings in the Greater Chinese netbook PC industry, Compal was still the largest contract manufacturer in the fourth quarter of 2009, with sales growth of its major client Acer pushing the company's shipment volume. Pegatron was the second largest manufacturer, benefiting from the sales growth of Asus. Inventec rose to third in the ranking as HP increased its shipment targets.
Shipment volume of the Greater Chinese netbook PC industry in the first quarter of 2010 is expected to decline 14.3% compared to the fourth quarter of 2009. According to MIC Industry Analyst Ya Wei Ku, "besides the arrival of the off-season, component shortages and labor shortages among component suppliers and contract manufacturers are also key factors in the industry's development in the first quarter. The production facilities of contract manufacturers and component suppliers are primarily located in coastal regions of China, and labor shortages in these regions are significant. These factors are having an impact on the netbook PC industry's shipment volume."
Netbook PC shipment volume is expected to continue to grow in 2010 as it will benefit from a rebound in global market demand, changes in product types, and cloud computing trends. The recovery of the global economy fosters confidence among consumers and stimulates end-market demand. Furthermore, products such as tablet PCs and non-Wintel smartbooks will enter the market in 2010. "These new products are expected to have a positive impact on the netbook PC market, which has mainly featured Wintel models and relatively uniform product specifications. The positive impact will consist of the added buzz these products bring to the market, stimulating the growth of the overall market. A possible negative impact of these new products is that they could take share away from the existing netbook PC market", said Ms. Ku.
In 2010, the Greater Chinese netbook PC industry will also be faced with Korean brands that manufacture products in-house, as well as contract manufacturers from other regions. In general, the industry will be hard-pressed to again achieve the high growth rates that were seen previously.
More information can be found in the following MIC report: The Greater Chinese Netbook PC Industry, 1Q 2010
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About MIC
Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english
About ITIS
The Industry and Technology Intelligence Services (ITIS) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.