Quanta Computer has expressed optimism about its performance next year, and believes its manufacturing flexibility will be able to encourage customers to place more orders, according to company vice chairman CC Leung.
Leung pointed out that Quanta's notebook shipments are expected to slip on year in 2019, but the lost volumes will be fully retrieved in 2020.
Quanta reported consolidated revenues of NT$265.14 billion (US$8.6 billion) for the third quarter of 2019, up 7.9% sequentially, but down 6% on year. The company's gross margin for the quarter was 4.8% with net profit rising 9.3% sequentially but slipping 7.9% on year to come to NT$4.34 billion.
Since Quanta has established new plants in both Taiwan and Thailand to serve clients' US-bound shipments, the company is expected to obtain more orders for 2020.
As for the market rumor that Quanta will no longer be producing Apple Watch in 2020, Quanta has declined to comment on specific clients, but noted that profits are the most import thing for a company, and product lines that require intensive labor but offer low profitability are indeed not the focus of Quanta's business development.
Quanta expects server shipments in 2019 to grow a double-digit percentage on year and the volumes will continue to pick up in 2020. Quana shipped a total of 25.3 million notebooks in the first three quarters of 2019, down 9% on year.
Quanta vice chairman CC Leung (left) and chairman Barry Lam (right)
Photo: Aaron Lee, Digitimes, November 2019
Article translated by Joseph Tsai
