Micro-Star International (MSI) expects its notebook shipments in 2010 will grow 50% on year and EPS will return to the level of NT$2.25 (US$0.07) seen in 2008 due to adjustments in its R&D process and reorganization of the company structure, according to company chairman Joseph Hsu.
Hsu said that failures in the company's notebook strategy and inventory management in 2009 caused the company to ship fewer notebooks and netbooks than expected.
For 2010, MSI will use Wind series netbooks, and Classic, Entertainment and Gaming series traditional notebooks to cut into different pricing segments. The company also expects the proportion of its X-Slim ultra-thin models, out of total notebook shipments, will rise from less than 10% in 2009 to 15% in 2010 on the addition of dual-core CPU models and entrance into the business market, Hsu noted.
MSI expects its motherboard and graphics card shipments for 2010 to reach 18 million and eight million units, Hsu noted.
Motherboard and graphics card businesses currently still account for 60% of MSI's overall profitability and helped cover the losses from the notebook business, Hsu added.
Commenting on Asustek's plans of gaining a 50% share of motherboard market in 2014, Hsu only said he wishes them luck.
MSI's all-in-one PC and auto electronics businesses both recently turned profitable and Hsu expects the two will both enjoy strong growth in 2010.
As for Apple's iPad, Hsu pointed out that the company's Nvidia Tegra-based tablet PC (mPad), which uses the Android operating system, will start mass shipments as soon as market demands it. The company will work with telecom carriers to offer bundling services. Hsu added that the company will shelve development of e-book readers.
Hsu also noted that upstream component makers currently have a labor shortage gap of about 30% which is expected to worsen after the Lunar New Year. However, since most of MSI's components are built in-house, the company will have see less impact from the shortages.
Joseph Hsu, MSI chairman, holding the company's Tegra-based tablet PC
Photo: Monica Chen, Digitimes, January 2010
Article translated by Joseph Tsai
