Taiwan's Compal to raise laptop part prices

Acer, Dell and Hewlett-Packard would pay more for notebook contracts

Compal Electronics, one of the world’s biggest contract laptop makers, will raise component prices this year to shore up a drop in profits, affecting computers made for Acer, Dell and Hewlett-Packard, the company said on Wednesday.

The Taiwan-based firm that produced 48 million laptops last year will gradually raise prices over 2011 on casing and copper for printed circuit boards, said investor relations head Chang Chih-ming.

The increases, which also reflect higher petrochemical prices and a surge in the local Taiwan dollar currency since late 2010, will be passed on to the three major notebook vendors, Chang said.

Acer, Dell and Hewlett-Packard have not indicated whether they would raise final consumer prices of laptops, he said.

"We are trying to improve our margins," Chang said in an interview. "But I cannot judge what our clients are going to do."

He would not say how steep the component price increases would be.

The notebook maker with US$12.8 billion in annual revenues told Taiwan’s semi-official Central News Agency that producers of components and accessories, including connectors and power supplies, had already raised prices on their products.

Compal is one of many Taiwan companies that do original design manufacturing for better-known sellers of notebook computers based overseas. Apple has also tapped Compal to assemble a new line of iPads, according to one report.

Compal also joins other Taiwan computer makers in raising prices on vendors as the currency appreciates, petrochemical prices go up and minimum wages rise in mainland China where end-products are often put together, said Wai Ho Leong, regional economist with Barclays Capital in Singapore.

Minimum wages in coastal China increased 25 to 30 percent in the third quarter of 2010.

Notebook prices for everyday users will increase 10 to 15 percent, Leong forecast. “Inflation is going to keep getting exported to overseas buyers,” he said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags pc componentsCompal Electronicshardware systemsComponentslaptopsacerHewlett-PackardnotebooksAppleDell

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?