As Wistron suffered a decline in 2011 gross margin to 4.91% from 5.61% in 2010, market watchers pointed out that Taiwan-based first-tier notebook makers Quanta Computer and Compal Electronics are both expected to see gross margins lower than 5% for 2011.

Among the first-tier notebook makers, Wistron is the most aggressive over business diversification and the strategy has helped the company to achieve a gross margin above 5% in 2010.

Quanta's gross margin in the fourth quarter of 2011 is expected to have dropped to 3.3% from 3.7% in the third, while Compal is expected to see its percentage dropped from 5% in the third quarter to 4.8% in the fourth.

The market watchers also pointed out that the drop in gross margin is due to weak notebook shipments, low utility rates and depreciation over the plants in western China were also parts of the reason for the drop.

Source:digitimes