Wistron expects revenues of its after sales service division to increase over 60% to reach NT$15 billion (US$471.99 million) in 2010, according to market sources.
With the average gross margin of after sales services able to reach above 20%, the division could contribute about NT$3 billion in profits in 2010, a lot higher than the average gross margin of 4-5% from hardware OEM businesses.
Wistron used to only provide after sales services to Acer. Consumers send their defected notebooks to a local Acer service center, which then arranges for hardware repairs to be done by Wistron.
There are already several other brand vendors planning to outsource their after sales services to Wistron in 2010 as the company has expanded to provide servicing for non-Wistron made notebooks.
Wistron has service centers worldwide including Shanghai in China, Dallas in the US, Holland in Europe, Tokyo in Japan, Bangalore in India and several locations in Southeastern Asia, and will continue to increase its service center numbers in 2010.
In addition to after sales services, Wistron also has investment in electronic waste recycling and is planning to establish new plants with Super Dragon Technology in China and other countries.
Article translated by Joseph Tsai
