NB will account for 80% of global market share in 2006, say MIC

Dell and HP both held positive projection toward lap-top computer (NB) market next year and also increased the orders placed toward Taiwan.

The volume of HP next year would be accounted for 12 million units with a 23 percent growth. According to JP Morgan, Dell would also have 13 million units next year to grow 20 percent from this year. Dell's OEM strategy toward Taiwan was also changed to include more OEM partners from Taiwan. The newest two consumer models were OEMed by Wistron.

According to the statistics, the four out of the top 5 global brands already placed the OEM orders toward Taiwan at the volume of 41 million units which might be accounted for over 50 percent of total global NB production volume which would be 72 million units. Besides the OEM orders from Fujitsu Siemens, Apple, NEC, Sony, MIC indicated that Taiwan OEM manufacturers would gain over 80 percent market share in terms of production volume.

In terms of Dell's OEM strategy in Taiwan, Dell would adopt 3 major suppliers and one minor supplier in the next year. Three major OEM partners included Quanta, Compal, and Wistron when Samsung might OEM smaller quantity for Dell. JP Morgan indicated that with the global OEM risk control management, major global NB brands would cater more opportunities for more OEM partners. The OEM volume from Quanta and Compal had been accounted for 45 percent of global NB OEM volume. That's why Wistron would be another OEM partner.

Between the year 2006 and 2007, Inventec might be another potential OEM partner for global brands' pick. According to MIC report, the global NB production volume would be 72 million units next year grew 19.8 percent from this year with 59.43 million units. Mr. Kai Hsiao, Director of Asia IPO, HP, said that HP's volume of next year would be more than 12 million units with growth rate about 23 percent to 27 percent. From the internal projection of Dell, the annual volume of Dell would be 13 million units next year grew 20 percent. The Chairman of Acer, Mr. J. T Wang said that the NB production volume might be reached 10 million units grew over 60 percent from this year with 6 million to 7 million units.

Toshiba's OEM orders toward Taiwan might be increased to 62 percent to 65 percent with about 9 million units which would grow 2 to 5 percent from this year.