Relationships between notebook ODMs and component suppliers have turned tense recently because ODMs have started demanding their suppliers cut quotes directly to the levels asked instead of dropping in stages, according to sources from the upstream supply chain.
Most upstream suppliers have coordinated with the ODMs’ demands, but some are delaying shipments to fight back the strategy.
Because of China’s increasing wages and exchange rates, most upstream suppliers are already suffering from declining gross margins, and as notebook shipments are dropping, the sources are concerned that the ODMs’ demands could impact their performances in 2013.
Quanta Computer shipped 20 million notebooks in the first half, and since the company is unlikely to achieve strong growth in the second half, the company’s annual shipments in 2013 are expected to be a lot lower than its 2012 shipments at 53.8 million units. However, Compal Electronics is expected to enjoy a slight growth from shipments of 39.4 million units in 2012 to 39.9 million in 2013.
Wistron’s shipments in 2013 are expected to see a slight drop from 2012’s 31.5 million units.