China Notebook Exports Double in May

Quanta rebuilds market lead in April and May.

Reflecting strong global demand for notebook PCs in the second quarter, China’s exports of these mobile computers in May hit an all-time high, nearly doubling the level of the same month in 2009, according to iSuppli Corp.

Both Chinese Original Design Manufacturers (ODMs) and Original Equipment Manufacturers (OEMs) exported 14.2 million notebook PCs in May, up 96 percent from 7.2 million one year earlier. Exports were also up 10.2 percent from 12.9 million units in April.

ODMs that conducted their manufacturing in China account for the vast majority of global notebook PC output, producing computers for well-known brand names including Hewlett-Packard., Dell and Apple. China also has its own notebook PC brands, most notably Lenovo.

China’s booming notebook exports are being driven by the increased preference of corporations and consumers for mobile computing compared to traditional desktop PCs. The strong year-over-year increase also illustrates the strong recovery of PC manufacturing and demand, compared to weak conditions during the recession of 2009.

Global mobile PC factory shipments amounted to 51.3 million units in the second quarter, up 4.4 percent from

49.2 million in the first quarter. Shipments in the second quarter were up 45.3 percent, compared to 35.3 in the second quarter of 2009.

The May export numbers appear to be running higher than the second-quarter totals because mobile PC OEMs are optimistic about demand during the back-to-school season and were building inventories to support expected sales.

Quantum Leap for Quanta
Quanta Computer Inc., a Taiwanese PC ODM that conducts its manufacturing in China, held on to its PC export lead in May, capping its charge to the top position during previous two months. During the period from February to April 2010, Quanta expanded its notebook PC exports by 74.3 percent, allowing it to storm past chief rival Compal Electronics Inc.—another Taiwanese ODM, to take the leading position in exports.

Quanta’s exports rose another 6.2 percent in May to 4.6 million units, up from 4.3 million in April. The company’s share of China’s notebook exports stood at 32.2 percent in May, up from 23.3 percent in February.

Quanta’s rise represents a major comeback for the company. After leading the China notebook ODM market in 2006, 2007 and 2008, Quanta saw its No. 1 position supplanted by Compal in 2009.

The company has managed to reclaim its lead in exports because of increasing orders from OEM clients and rising production in China. As a result, Quanta could retake its notebook ODM market lead for all of 2010.

Quanta has also benefitted from its strong partnerships with high-flying customers, including Apple Inc. In fact, the company in 2009 was Apple’s largest contract manufacturing partner for mobile PCs. Apple continues to make extensive use of Quanta manufacturing for its notebook products; the iPad, however, is not included.

Quanta’s largest PC OEM customer for mobile PCs is Hewlett-Packard Co., the world’s No. 1 notebook PC brand.