Quanta to Benefit From RIM's FIPS-Certificated Playbook Tablet

Aug 04, 2011 Ι Industry In-Focus Ι Electronics and Computers Ι By Steve Chuang, CENS
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Taipei, Aug. 4, 2011 (CENS)--As Research In Motion (RIM)'s tablet PC Playbook has won the FIPS (Federal Information Processing Standard) certification, Quanta Computer Inc., the contract manufacturer of the device, is expected to gain steam in the near future, according to institutional investors.

Although outsold by Apple Inc.'s iPad and most of Android models, Playbook, however, has become the only tablet PC certificated by FIPS for the moment. This will make business of government procurements accessible for RIM, while granting its contract manufacturer Quanta huge business potential.

Noteworthily, Taiwanese PC parts and component suppliers will also enjoy a share of the business pie, including Cheng Uei Precision Industry and Simula Technology (connectors), Catcher Technology (PC housings), Career Technology (flexible printed circuit boards) and Unitech Electronics (rigid PCBs).

In addition to RIM, Quanta has also garnered contract orders for tablet PCs from Amazon and Sony. Since the beginning of July, the PC manufacturer's production lines have been rolling for Amazon, which demands 800,000 to 1 million units of its model per month from August through October. Industry insiders indicated that Quanta's tablet PC shipment to the customer alone will near 3 million units, and contribute an additional NT$24-30 billion to the annual revenue of the year.

Accordingly, Amazon's tablet PC features simpler technical specifications than competing models on the market and hence is cost efficient, reflecting the newcomer's ambition to quickly gain a huge consumer base in the competitive landscape with budget-priced hardware and steadily carve out big profits with application software.

Fueled by customer's orders, Quanta's overall tablet PC shipment is estimated to reach between 4 million and 5 million units in the third quarter.
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