Although the notebook market is expected to underperform during the traditional peak season in the second half of 2025, this has not deterred Clevo's hopes for sequential quarterly growth with its blue ocean strategy. According to the company, third-quarter shipments are expected to surpass second-quarter levels, due to stable demand in Europe and Japan, and easing tensions between the US and China. These conditions represent new opportunities for Clevo, which operates the Buynow computer and IT malls in China.
In the second quarter of 2025, high-priced notebook models targeting the "blue ocean" market accounted for 66% of Clevo's shipments, driving a quarter-on-quarter operating profit increase of 114% and a year-over-year growth of 6%. With improved supply of key components in the second half of the year, combined with ongoing replacement demand in Japan and Europe, the company is forecasting sequential growth throughout the remainder of 2025.
Recovering demand in Europe, other markets to drive shipments
As the traditional peak season arrives in the second half of the year, and the approaching deadline for the end-of-support of Windows 10, Clevo believes that business customers will continue to accelerate equipment upgrades. The company plans to expand its AI PC product line to optimize its portfolio, which will help achieve the target for increased shipments in the third quarter, based on shipment trends in July and August.
While many in the notebook supply chain anticipate a subdued peak season in the latter half of the year, signs of recovery are starting to show in Europe and other regions, with Acer chairman and CEO Jason Chen recently noting better-than-anticipated conditions in Europe as consumer confidence slightly rebounds.
Similarly, Clevo is focusing on markets in Europe, Japan, South Korea, and China. In the first half of 2025, these regions collectively represented 36% of shipments, with Japan and South Korea accounting for 17%, reflecting an impressive annual growth rate of 23%. By concentrating on white-label models targeting the high-end "blue ocean" market, Clevo emphasizes profitability over volume.
China accounts for 23% of Clevo's notebook shipments, and the company expects shipment volumes to increase in the second half of the year as the gaming market in China heats up, and vendors ramp up preparations for the Double Eleven shopping festival. Moreover, impacts from exchange rate fluctuations are expected to ease in the remainder of the year as the New Taiwan Dollar stabilizes, allowing the company to regain momentum in its core business.
Steady operations in sales channel business
Clevo has enhanced customer engagement and spending in its Buynow sales channel operations in China through offline experiences and promotional events, while its Chicony Square shopping malls in Wuhan and Chengdu maintain steady operations amid market challenges. With the easing of tensions between the US and China, Clevo expects its sales channel business to improve as China's economy recovers.
Due to overall market conditions, Chicony Square reported a net loss after tax of CNY 8 million (approx. US$1.1 million) in the first half of 2025. However, with steady operations in its main locations in Wuhan and Chengdu, coupled with major sales peaks such as the summer holidays, anniversary sales, Double Eleven, Double Twelve, and year-end promotions, Chicony Suqare—in which Clevo holds a 30% stake—aims to navigate challenges by growing revenue and adopting cost-saving measures.
Article translated by Kevin Wang and edited by Jack Wu
