July 27, 2000

Taipei - - The total volume of barebone PCs delivered by all Taiwan manufacturers is forecasted to constitute 40% of the global production volume, International Data Corp. (IDC) announced. Worldwide demand for desktop PCs this year will increase by 18,3% from last year to 100 million, it said.

IDC analyses the increase due to the trend toward low-price PCs, driving the world's top five PC brands to place more orders with cost efficient Taiwan manufacturers, either on OEM or ODM basis this year.

In detail, Hon Hai Precision Industry Co. Ltd. Will supply more than 17 million units this year, including OEM production of i-Macs for Apple. The company is even aiming at 20 million units this year.

Enlight Corp. sold 2,6 million PCs so far this year, but forecasts it's minium delivery volume for 2000 at nine million, including three million for Compaq and one million for Hewlett Packard. The volume might even reach 10 million the company said.

Lite-On Electronics Inc. and Song Cheer Computer Co.Ltd. cooperate to make barebone PCs and expect to ship seven million this year.

Delta Electronics Inc. and it's partner Loyalty Founder Enterprise Co. Ltd. forecast sales of 2,5 million units this year.

While Taiwan manufacturer's OEM or ODM production volume is on the rise, the average gross profit rate of barebone PCs has dropped from 15% to 11 - 13% this year, IDC said.