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 2^nd 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 3^rd largest contract notebook manufacturer in the world. Wistron Corporation is an electronics manufacturer based in Hsinchu, Taiwan.

#4) Pegatron Corporation (TPE: 4938) is the 4^th 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 5^th 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.

Infrastructure Investing

Infrastructure Investing is breaking down a leading technology company's product or service components and pinpointing who their suppliers are and then analyzing those suppliers and if those suppliers meet your investment risk tolerance, investing in those suppliers.

Take as an example the wonderful smartphone product from Apple, Inc. who owns the very popular iPhone that is perhaps the most popular selling smartphone worldwide. What do we know about the suppliers of the iPhone? Well, we may or may not know that the iPhone is manufactured by Foxconn of Taiwan, but what makes the iPhone unique is its digital ecosystem, such as its operating system, iOS and the 200,000 plus applications (apps) available.

A cadre of companies supply the iPhone:

• Broadcom Corporation (NASDAQ: BRCM), Supplies the iPhone's GPS chipset.
• Balda AG (ETR:BAD), Manufactures the scratch-resistant, multi-touch sensitive control modules that give its touchscreen magical-like behavior when you interact with the screen.
• Infineon Technologies AG (ADR) (Public, PINK: IFNNY), supplies the iPhone's baseband, which is the core chipset to handle voice and data.
• Intel (NASDAQ: INTC), makes the Nor Flash Chips which makes the iPhone system software easy to update.
• Samsung Semiconductor (Private), makes the integrated circuit for the video processors.
• Sharp (ADR) (PINK: SHCAY) & Sanyo Epson (aka, Wolf Microelectronics PLC) (LON: WLF), supplies the display.
• Skyworks (NASDAQ: SWKS), makes the mobile radio amplifier.
• Micron Technology Inc. (NASDAQ: MU), makes the CMOS chip.
• Cambridge Silicon Radio (CSR PLC) (LON: CSR), makes the bluetooth Chip.
• Taiwan Semiconductor Manufacturing Company (TSMC) (ADR) (NYSE: TSM), the world's largest contract chip company by revenue makes the chip for the iPhone.
• United Microelectronics Corporation (UMC) (ADR) (NYSE: UMC) is the second largest contract chip company in the world also makes iPhone chips.
• National Semiconductor (NYSE: NSM) & Novatek Microelectronics Corporation (TPE: 3034), make the iPhone's display driver chip.
• Quanta Computer (TPE: 2382), assembles the iPhone & will be making RIM"s tablet computer, "BlackPad."
• Foxconn (ADR) (PINK: FXCNY), also assembles the iPhone, Wii, Playstation & Apple's ipod Touch.
  

This is the key to investing in the infrastructures that make up the most highly-sought after products today and if you go with a balance of the dominant manufacturers in their industry or niche, you will be okay, but for the truly spectacular margins, have a look at the rising technology manufacturers. As always, do your due diligence and profit from your understanding!