Wistron to start business reorganization
Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Monday 19 August 2013]
Wistron chairman Simon Lin announced at a supply chain conference on August 19 that the company plans to start a business reorganization in the near future. The company will focus on integrating its resources from different departments for the reorganization.
Market watchers pointed out that Wistron is seeing its notebook orders suffer a setback as clients opt for in-house production in the second half of 2013 and the company will also see its 2014 orders shrink significantly. Through the reorganization, Wistron is trying to stay competitive by merging its resources in order to become more effective.
Since Wistron’s LCD TV and monitor businesses are also facing reduced orders from Japan-based clients, rumors about Wistron axing the businesses or selling them to TPV Technology have been circulating in the market. However, Wistron refuted both rumors.
Lin also noted that the company’s subsidiary AOpen will turn its focus to the channel retail business in the future.
Wistron is turning its business focus to non-notebook product lines, but since the notebook business still contributes about 45-50% of the company’s revenues, the company is conservative about its overall performance in the second half of the year.
Currently, Wistron is facing strong pressure from its major client Lenovo gradually shifting its orders to the China-based vendor’s joint venture with Compal Electronics. Meanwhile, Acer’s weak shipments in the second half of the year are also expected to impact Wistron’s performance. Wistron shipped only 1.65 million notebooks in July, its lowest monthly shipment in 2013.
Compared to the notebook business, Wistron is still seeing stable shipments for its tablet, handheld and server product lines. As for the LCD TV business, although the company expects the business to suffer from losses in 2013, it expects growth in 2014.