Wistron out of Acer 2014 main notebook ODM list, say Taiwan makers [Global Data Point]
(Global Data Point Via Acquire Media NewsEdge) Acer has not released orders for mainstream notebook models to be shipped in 2014 to Wistron, currently one of its main ODMs, which indicates it will not use Wistron as one of its main ODMs in 2014, according to Taiwan-based supply chain makers.
Acer originally had four main Taiwan-based notebook ODMs, with Quanta Computer, Compal Electronics and Wistron each responsible for about 30% of its total shipments and Pegatron for about 5%, the sources indicated. For notebooks to be shipped in 2014, however, Acer has released no ODM orders to Pegatron and placed on limited orders for non-mainstream models with Wistron, leaving Quanta and Compal as its two main ODMs, the sources said.
Wistron's lose of orders is possibly due to its organizational restructuring in which the original independent team specifically responsible for Acer notebooks has been combined with other teams into a new group to handle notebooks for several vendors, the sources indicated. The combined team has made Acer worried that R&D and production resources will not be allocated to its notebooks, the sources claimed.
Another reason is that Acer has adjusted its strategy by focusing on product quality instead of shipment volumes, and therefore its notebook shipments in 2014 are likely to decrease on year. As a result, Acer has to concentrate ODM production with Quanta and Compal to reach an economic scale and increase its bargain power for lower ODM prices, the sources analyzed.
Wistron has been shifting focus from notebooks to smartphones, tablets, desktops, LCD TVs and mobile devices, aiming to decrease the revenue proportion for notebooks to below 50% in 2013, the sources noted.
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