Feeds

Renewed orders a false dawn for Taiwan's OEMs

It's just short-term stock-piling, industry watcher warns

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Increasing sales to major US PC companies are almost certainly not a sign of the long-awaited industry revival, Taiwanese component and computer manufacturers have been warned.

Quite the reverse, the island's Institute for the Information Industry (III) has said, according to a Commercial Times report: the renewed ordering activity will be a short-term phenomenon driven by the IT giants' attempts to build up inventory of crucial components in case airfreight schedules are disrupted by the US' punitive attacks on Afghanistan's Taleban regime.

The III claims that the likes of Quanta and First International Computer have seen orders from Dell, IBM, Hewlett-Packard and Compaq - to name but four - soar. And since demand for new PCs remains low, the III has concluded that the orders are not driven by an anticipated upturn in the market, but by fears of future supply problems.

Either way, that's not good for component makers. Even if no restrictions are placed on commercial flights, unless demand picks up significantly PC makers will be left with inventory they need to clear and that means future orders will fall. Sales will also fall off is there are subsequent limitations placed on the number of flights.

"As long as the short-lived demand of overseas companies is fed, local electronics firms will face adversity of sharply decreasing orders for contract manufacture, which may dent their performance for next year," said the III. Indeed, said the III, thanks to the aftermath of the 11 September attacks, the output value of Taiwanese IT production could fall by as much as NT$130 billion ($456.34 million) or 15 per cent this year. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.