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Compal eyes 50% revenues from non-PC businesses by 2020
Source: DIGITIMES   Editor: Helan   Update Time :2017/8/11 15:05:49

Compal Electronics is planning to raise its non-PC businesses' revenue contribution to 50% by 2019 or 2020, up from second-quarter 2017's 31%, according to company president Ray Chen.

Chen pointed out that the revenue proportion for the non-PC businesses went up from 24% in the first quarter to above 30% in the second and the company expects the percentage to rise to 35% in 2018 and above 40% in 2019.

Although the revenue proportion of the PC business will decline, Chen said the company will try to prevent the actual revenues from falling. Some market watchers pointed out that Compal has turned conservative about the smartphone business recently because of LeEco's bad debts and therefore, the company's non-PC business focuses are likely to be tablets, Internet of Things (Iot) and wearable devices.

Compal originally expects its PC shipments to reach around 40 million units and smart handheld devices 36 million in 2017, but the goal for smart handheld devices has recently been reduced to 31 million units because of LeEco.

With iPads gaining momentum in shipments in the second quarter of 2017, Chen is optimistic about tablet demand in the second half of 2017, while wearable devices and smart speakers are also expected to drive growth for non-PC businesses. Compal expects its wearable product shipment ratio for the first and second halves of 2017 to reach 3:6.

Compal has also been aggressively expanding its server business, but so far the server business only accounts for a tiny portion of its revenues. However, Compal has been landing orders from major server players and will see surging growth in 2018-2019.

The Taiwan-based ODM expects its third-quarter PC shipments to enjoy a 5-10% sequential growth and smart handheld device shipments over 10%. In the fourth quarter, both notebook and smart handheld shipments will stay flat from the third quarter with revenue ratio for the first and second halves of 2017 reaching 45:55.

Compal shipped three million notebooks in July.

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