Compal Electronics saw the revenue proportion for PC products slip from over 70% in the past to 68% in 2017 and expects the percentage to further drop to 65% in 2018, as shipments will increase for smart wearables, as well as for medical care and biotechnological segments, according to company chairman Rock Hsu.
However, Hsu still expects Compal's PC shipments to grow a double-digit percentage on year in 2018, far better than the industry's average. Having declined for several years at an annual rate of 5-7%, worldwide notebook shipments reached a supply/demand balance at 165 million units in 2017 and the chance for the volume to drop dramatically is rather slim, Hsu said.
For the smart medical care industry, Compal has cooperated with several veterinarians in Taiwan and jointly established a veterinary hospital in 2017. Compal is mainly responsible for supplying equipment the hospital needs.
Compal has also been developing smart clothing, bracelets and smartwatches to detect users' body conditions.
As for the progress of selling its stakes in its notebook manufacturing joint venture with Lenovo, Hsu pointed out that all the work has already been completed and the company is now only waiting for the Lenovo management's final confirmation before Compal is able to disclose any detail.
Some market watchers expect Compal to earn a profit as high as US$600 million from the transaction, which will increase the company's EPS by NT$2.26 (US$0.08) in the first quarter of 2018. |