Jobs was referring to Apple’s product mix in which sales of notebooks now make up some 50% of total sales, replacing the traditional desktop PC. According to DisplaySearch, global notebook PC shipments will increase 20% in the third quarter of 2003.
In fact, DisplaySearch predicts that the period between third-quarter 2003 and fourth-quarter 2004 will experience higher growth rates than the preceding 10 quarters, with increases averaging 20% to 25%.
This replacement trend is boosting Taiwan manufacturers, who will make 76.9% of the world’s notebooks in 2003, up from just 34.4% in 1997.
Taiwan’s top notebook PC makers in 2003 will continue to be Quanta, who will make an astonishing 25% of the world’s notebooks, and Compal with some 16% of all notebooks. Other major Taiwan makers include Inventec, Wistron, and ASUSTeK.
What is driving this newfound growth in notebooks? According to DisplaySearch, the 10 key drivers are:
- Powerful video graphics controllers manufactured by NVIDIA and ATI.
- More wireless convenience. Proliferation of so-called “hotspots” through airports, cafes, etc. that allow true mobility.
- Desktop replacement. Notebook vs. desktop PC
- New CPU introduction and promotion—Intel Centrino, AMD, and Transmeta promoting wireless access.
- Power consumption reduction, meaning longer battery life.
- Better thermal solutions to solve overheating problems common in earlier models.
- A one-computer policy at major corporations, rather than one desktop and one notebook.
- More attractive form factors—slim, lightweight, and wide aspect viewing widen the appeal for users in all segments.
- Asia market growth potential, not just U.S./European growth.
- Prevailing Standard Panel Working Group (SPWG) Mechanical and Electrical Display standard means panels are becoming standardized.
Aggressive promotion of low-priced consumer notebook PCs by leading brand-name vendors drove Taiwan notebook PC shipments to a record-high 5.6 million units for year-on-year growth of 22.5% in the second quarter of 2003, according to Taiwan’s Market Intelligence Center (MIC).
In terms of display sizes, models bundling 15-in. panels comprised 51% of total shipments, with 14-in. displays making up 39% of Taiwan notebook PC shipments.
Shipment value, fuelled by strong volume growth accompanied with gentle price declines, increased 6.2% year-on-year to a new high of $3.6 billion.
For more information, visit www.taiwantrade.com.tw.