Shipments of Notebook PC ODM Industry Increased Significantly in 2Q19

Shipments of Notebook PC ODM Industry Increased Significantly in 2Q19
Fotolia

The global production volume of notebook PCs by the ODM/EMS industry increased 11.4% year over year to 39.7 million units in the second quarter of 2019 (2Q19), according to IDC. The growth in ODM shipment volume was driven by the increased availability of Intel CPU supply and growing OEM orders.

"The ODMs' new production facilities weren't yet ready to mass produce in the second quarter of 2019; therefore, preparing additional inventory to avoid the impact of the USA tariffs is the main reason for the increase in shipments," said Annabelle Hsu, associate research director for IDC's Worldwide Hardware Assembly Research. "Notebook PCs sold to the USA market must be produced outside China before the deadline of imposing the tariffs.

The worldwide production share of the Taiwanese notebook PC ODM/EMS industry reached 82.3% in 2Q19. However, the global manufacturers' production locations remained concentrated in China. As for the top 5 ODMs, Compal maintained its first place position, while Quanta's customer base is the most extensive.

Worldwide Top 5 Notebook PC ODM/EMS Companies, 1Q19 - 2Q19

Ranking

ODM/EMS

1Q19 Share

2Q19 Share

1

Compal

26.0%

30.5%

2

Quanta

20.3%

21.0%

3

LCFC

13.5%

10.0%

4

Wistron

9.7%

9.4%

5

Inventec

10.2%

9.1%

For the worldwide notebook PC ODM industry forecast, the new production facilities outside China will be ready to mass produce soon. As a result, IDC expects the shipments of worldwide notebook PC ODM/EMS will decrease in the fourth quarter of 2019 due to the inventory preparing in earlier this year.