BenQ aims to join notebook top 10

BenQ Corp, Taiwan's biggest mobile handset maker, yesterday vowed to become one of the world's top 10 notebook computer-makers by 2007, with shipping volumes amounting to 1.5 million units.

"A strong brand image, ample panel supply and mature channel deployment in strategic markets will differentiate BenQ from its competitors," Hank Horng, general manager of the computer product strategy business unit, told reporters at a notebook launch yesterday.

The company will meet its target set earlier this year, which is to ship around 250,000 notebooks worldwide by year's end. Production is expected to peak in this quarter at over 100,000 units, he said.

Next year, production will more than triple to 800,000 units before reaching 1.5 million in 2007, enough to make BenQ a top 10 laptop-maker, he said.

Instead of focusing on all markets, the company will dedicate resources to China and major European countries as these markets are currently driving its growth, he added.

Horng admitted that the company does not fare well in Taiwan, due to an imbalance of resources allocated among various product segments.

As the local market can only account for around 600,000 laptops annually, BenQ has set its sights on larger markets such as China and Germany, as each can absorb around 4.5 million notebooks next year, he said.

However, analysts said that compared with local peers such as Acer Inc and Asustek Computer Inc., BenQ still has a long way to go to become a notebook giant.

"It is doubtful that BenQ will reach its target to become a top 10 player within the next two years," said Simon Yang, an analyst with the Topology Research Institute.

At best, BenQ's notebook shipments will most likely reach around 500,000 units next year, far below the target of 800,000 units, he said.

Computer makers will need to produce at least 2 million notebooks to enter the top 10 club in 2007, half a million units more than the figure of 1.5 million units quoted by BenQ, which the company will in any case most probably fall short of, he added.

According to Yang, BenQ trails far behind Asustek and Acer in Taiwan, due to unattractive pricing strategies, weak channel deployment and limited product ranges.

"It would be advisable [for BenQ] to strive to first establish a name for its core handset business, which will then enhance the image of its notebooks," he said.

source: Taipei Times