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TFI Chief Economist Matt Chanoff and Founder and President Pamela J. Gordon point to three factors that threaten China's position as the world's electronics producer, three factors that strengthen that position, and then provide their take on the information.
Quanta Computer and Compal Electronics are both expected to see falling gross margins in the first quarter of 2012 with Quanta's problems due to its weak shipments for non-notebook businesses, while Compal is affected because of the weak utilization rate caused by the slow season.
The Taiwan-based Wistron Corporation, a globally leading contract manufacturer of notebook PCs by market shares, reported full-year EPS (earnings per share) of NT $4.36 for 2011 to outpace its Taiwanese counterpart Compal Electronics Inc. as the second most profitable company of this kind on the island.
Taiwan-based notebook ODMs expected ultrabooks to contribute 10% of their shipments in the second quarter as notebook vendors such as Apple, Sony, Hewlett-Packard (HP), and Toshiba are all set to mass produce or launch new ultrabooks in the quarter.
Foxconn Electronics Chairman Terry Guo on April 4 said the company will significantly raise salaries for its employees in Taiwan in July, according to a Chinese-language United Daily News (UDN) report.
PC ODM Quanta Computer and chassis supplier Foxconn Technology are expected to benefit from the launch of Apple's latest iMac desktops, which are set to launch in June with Intel's latest Ivy Bridge processors.