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Quanta Computer, a major Taiwanese producer of notebook and other small form PCs is blaming the fact that they are making too many Netbooks for a drop in profits in August.

Overall Quanta shipped 3.1 million notebooks and Netbooks in August, an increase of 200,000 units over last August…however it took in 18.5 percent less cash for them. Quanta, which produces the Acer Aspire One as well as upcoming Netbooks for Lenovo and Sony. Apparently Quanta is expecting those products to take their Notebook/Netbook shipments to record highs, and perhaps their profit margin to record lows.

There is clearly a gloomy lining in the silver Netbook cloud that has many Asian PC producers working their factories overtime. The profit margin is so low, and competition so fierce in the popular Netbook lines that they just aren’t making the revenues they do on the much more expensive Notebooks that used to be their bread and butter.

I am quite sure this is a sign of the times and companies are going to have to find new business models to adapt to the changing reality of the market. Vendors that were used to creating premium priced luxury products will have to find creative ways to keep their profits up with lower cost products, more popular devices such as Netbooks.

Don’t weep too many tears for Quanta, however…they are also a producer of Apple’s iPhone.

(Source – Digitimes)

Zealot (446 Posts) - Website | Twitter | Facebook

By day a department manager and writer for a major network device vendor...by night Zealot stalks the mean magnetic streets, striking fear into the hearts of bandwidth abusers and theme park mascots. Zealot has been involved with mobile devices for more than a decade now, starting off with dumb phones, moving to PDAs and then to smartphones, notebooks and netbooks with the odd PMP thrown in. Most of his mobile time currently is spent on a Treo Pro, Zune HD, Thinkpad T61, Gigabyte M912M or a Hackintoshed Compaq Mini 704. He proudly groks the Geek community and considers himself a Neo Maxi Zune Dweebie (thanks Will Wheaton!).