Compal Reportedly Garners HP's Big Order for New Chromebook

Taiwan-based Compal Electronics Inc., a globally leading contract maker of PCs by shipment, has reportedly garnered HP's big order for over 1 million units of the new-edition Chromebook scheduled for launch in the third quarter of this year, according to industry sources.

Declining to confirm the news, Compal's president, Ray Chen, said at an investor conference held earlier that his firm has seen contract orders for the laptop models continuously increase.

The new Chromebook laptop is regarded as HP's growth driver for the global notebook PC segment in the short term. Recently, the PC giant has shown growing ambition to explore the segment for Chrome-powered computers, hence aggressively promoting its Chromebook. In addition to the said new Chromebook in the third quarter, it will also launch its Chromebox mini desktop in June.

HP's foray into Chrome-installed computers will surely benefit Compal, which predicts that Chromebook laptops will notably increase to make up 5-10% of its total shipment next year, mainly on strong demand in the education segment, compared to less than 5% forecast through the fourth quarter of this year.

As to outlook in the second quarter, Compal says that despite a low season, its shipments of both laptops and smart handsets are expected to rise double-digit over the first quarter, mostly thanks to new orders and new products.

After finishing the first quarter with notebook PC shipment of 8.9 million units, the firm shipped some 2.7 million units in April. Based on the abovementioned growth forecast, institutional investors project the company's shipment in both May and June to shoot up to 3.5 million units.

Compal's banner shipment is expected to continue into the third quarter, the peak season. (SC)