Friday, August 20, 2010

The Top 5 Contract Notebook Manufacturers


Being a notebook aficionado, I own several Apple products, a netbook, a pocket computer, a mobile Internet device (Archos 8), a touch tablet computer, a smartphone, a smartbook and a USB VOIP SIM card reader and softphone. Surprisingly, most of what I have were made by just a handful of electronics giants.

An advocate of Infrastructure Investing, I firmly believe that your most consistent earnings will come from the suppliers of the materials that make up the gadgets that consumers want by expressing their insatiable appetite for whatever that trendy mobile device or technology item happens to be. If, you're fortunate to invest early in those industries or niches before the growth of that entity softens, you will be happy you did. Since it isn't always possible for whatever reasons to get in early, you can at least to strive to ride the wave of earnings from those companies that supply or contract manufacture the items the public desires.

Here are the Top 5 Contract Manufacturers in the Notebook Industry and you will note that many if not all of these companies, specialize in other mobile devices and entertainment products as well.

#1) Quanta Computer, Inc. (TPE: 2382) based in Taipei, Taiwan is the largest contract notebook manufacturer in the world. Quanta Computer also makes GSM mobile phones, WLAN related products, PDA’s and LCD’s.

#2) Compal Electronics, Inc. (TPE: 2324) is the 2nd largest notebook manufacturer in the world. Compal Electronics is based in Taipei, Taiwan, with offices in the U.S., U.K., Mainland China and South Korea. Compal’s leading manufacturer facility is located in Kunshan not far from Shanghai.

Compal Electronics manufactures select models from Acer, Dell, Toshiba, HP/Compaq, Fujistu and Siemens. Compal also manufactures 3D televisions, IP-televisions and “all-in-one” computers.

#3) Wistron Corporation (TSE: 3231) is the 3rd largest contract notebook manufacturer in the world. Wistron Corporation is an electronics manufacturer based in Hsinchu, Taiwan.

#4) Pegatron Corporation (TPE: 4938) is the 4th largest contract notebook manufacturer and also produces consumer electronics (game consoles) and communications devices (mobile phones). Pegatron is based in Taipei, Taiwan. Pegatron was formerly Asustek, the maker of the Eee netbook computer.

Pegatron Corporation also makes smartbooks, MID’s (mobile Internet devices), motherboards, VGA (video graphics array), MP3 players, E-book readers and DPF (digital photo frames).

#5) Inventec Corporation (TPE: 2356) is the 5th largest contract notebook manufacturer and based in Taipei, Taiwan.

Your strategy should be to examine each computer manufacturer as well as the brand (Dell, Acer, Toshiba, etc.) to determine which shows the most promise for continued growth. Keep in mind also that between the top 4 contract notebook manufacturers, the notebook brands that contract with them generally don’t show loyalty to any one-contract manufacturer when their bottom line is at stake. Notebook brands generally go with whichever contract notebook manufacturer affords them the best margins, so choose wisely among them. Due your research and profit from your understanding.

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