Compal Electronics, a key player in the OEM industry, reported a February revenue of 57.522 billion yuan, marking a 10.2% decline from the previous month and a 14.1% decrease year-over-year, reaching its lowest point in 22 months. The cumulative revenue for the early part of the year also saw a downtrend, with a 6.26% reduction compared to the same period last year, totaling 121.581 billion yuan.
The company’s leadership attributes this downturn to the seasonal lulls impacting both its PC and non-PC segments, anticipating a double-digit decline in these areas. However, Compal remains optimistic about its future trajectory, projecting an overall annual improvement. This positivity is fueled by the anticipated uptick in server revenue, expected to grow by 3 to 4% year-on-year, alongside promising advancements in new business sectors set to kick in during the latter half of the year.
Compal’s laptop shipments in February stood at 2.3 million units, showing resilience with a 6.66% increase both month-on-month and year-on-year. Despite the prevailing economic uncertainties and geopolitical tensions casting shadows over the first-half forecasts, Compal is gearing up for a significant recovery post-mid-year. The company is betting on substantial annual growth in its automotive electronics, server solutions, 5G technology, and medical product lines.
For its PC business, Compal is cautiously optimistic, expecting a single-digit growth rate for 2024 over the previous year. This growth is anticipated to be driven by the introduction of AI PC products and an increase in the average selling price. Although the AI PC market penetration is projected to remain in the single digits for this year, Compal foresees a more pronounced expansion in the upcoming year, aligning with broader market adoption of AI technologies.
