Gross margins of PC ODM players are expected to return healthy in 2012 as the notebook supply chain has already reached a mutual consensus to refuse low-margin orders in the future, according to sources from PC vendors.

Taiwan-based PC ODM Quanta Computer, on August 31, also pointed that the company's future order strategy will focus on high profitability and it will no longer push for volume, while Compal Electronics president Ray Chen, on the same day, also noted that the PC industry is not a sunset industry as the market is already starting to turn healthy.

Chen also pointed out that every industry will start seeing growth declines after reaching maturity; however, although the PC industry is unlikely to see a 20-30% growth each year as in the past, as players in the market will soon all be involved in either mergers or acquiring others, the process will significantly reduce the number of competitors in the market and help competition in the future to become more healthy with profitability to also start growing.

As for Microsoft's Windows 8, Chen believes the operating system will trigger a new replacement trend in the PC industry and will affect both tablet PCs and traditional notebooks, especially enterprise tablet PCs.

Commenting on Intel's new Ultrabooks, Quanta vice chairman CC Leung is optimistic about the new product and believes models with prices as low as US$499 will appear by the second half of 2012 to help push the traditional notebook market.

As for the weak prospects for the second half of 2011, Leung believes that back-to-school demand has been delayed because of the weak economies in Europe and the US and the effect may be sustained to the year-end holidays. Meanwhile, Chen also pointed out that consumer demand in the second half will be weak and brand vendors are turning conservative about their orders.

Source:digitimes