Chinese Paper Reports Reduced Apple Notebook Orders

by: Mr. EB November 12, 2008 | about stocks: AAPL    

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Chinese-language paper wrote that Apple cut notebook orders with their manufacturing partners by 20-30% this fourth quarter. Source: Digitimes

Apple and Asustek Computer recently reduced their notebook outsourcing for the fourth quarter this year by 20-30% impacting the two vendors’ main OEM partners Quanta Computer and Pegatron Technology, according to a Chinese-language Commercial Times report.

Asustek has estimated notebook shipments in the fourth quarter this year will only reach 1.7 million units making it unlikely the company will be able to reach its annual shipments goal of six million units, noted the paper.

With demand in the first half of next year likely to continue to decline, low outsourcing volumes from the two vendors are expected to be ongoing, added the paper.

On the last earnings conference call, Apple said they were worried about PC demand as it was weak before their new notebook updates. Although sales picked up right after the launch, the company was cautious on whether it was sustainable or not due to the macro-economic factors. You can read my notes of the earnings call here.

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This article has 14 comments:

  •  
    Nov 12 05:13 AM
    Why would Asustek reduce its production? I thought its netbooks were flying off the shelves.
    Reply | Link to Comment
  •  
    Nov 12 05:42 AM
    Now go back and take a look at how accurate digitimes has been with their reporting on Apple. The media is not a source in and of itself. Digitimes is not a research group. And as a media source, it has had quite an unreliable track record.
    Reply | Link to Comment
  •  
    Nov 12 05:42 AM
    Now go back and take a look at how accurate digitimes has been with their reporting on Apple. The media is not a source in and of itself. Digitimes is not a research group. And as a media source, it has had quite an unreliable track record.
    Reply | Link to Comment
  •  
    Nov 12 06:48 AM
    hkhk
    Reply | Link to Comment
  •  
    Nov 12 06:49 AM
    Typical short-seller BS 'news'.
    Reply | Link to Comment
  •  
    Nov 12 07:01 AM
    Aside from whether this is true or accurate, I guess what I don't understand is why the (predominantly) Chinese suppliers share confidential information. They seem to pass these rumors and 'supply chain checks' like a bunch of giggling schoolchildren pass a note around the class. Why would you publicly share what should be a private matter between you and your customer?

    Perhaps it's just a difference in business culture that is accepted in China, but once the information reaches the American business journals it works an insidious effect on the stock, which doesn't help in the current climate. Currently, the bump you get from massively exceeding earnings (like in Apple's Q4'08) is less than the dip from all of the downgrades and silly half-true gossip.
    Reply | Link to Comment
  •  
    Nov 12 07:59 AM
    On a brighter note, the authors of these "stories" (Mr. EB, and Joseph Tsai of Digitimes) are doing spendidly in their studies, and each fully expects to graguate to the 3rd grade next year!
    Reply | Link to Comment
  •  
    Nov 12 08:09 AM
    On a brighter note, the authors of these "stories" (Mr. EB, and Joseph Tsai of Digitimes) are doing splendidly in their studies, and each fully expects to graduate to the 3rd grade next year!
    Reply | Link to Comment
  •  
    Nov 12 09:40 AM
    mmm wish I could read Mandarin myself... I also can't imagine for the life of me why this info gets bandied about publicly...
    Reply | Link to Comment
  •  
    Nov 12 10:16 AM
    i just can't imagine the Chinese sharing this 'information'. The rumor mill churns hourly... and we know that some are alive whom others called dead...so...that's about where this is.
    Reply | Link to Comment
  •  
    Nov 12 10:51 AM
    If Apple caused Think Secret to cave because of its rumour accuracy, I don't see why they don't light a fire under their outsource producers for revealing damaging confidential data about orders to a newspapers.
    A good way to ensure supplier integrity is to rotate suppliers every so often or in the event of a serious breach, such s this act of commercial client disloyalty.
    Reply | Link to Comment
  •  
    Nov 12 11:33 AM
    I could understand Apple having to cut back production on it's so-called extremely over-priced MacBooks and MacBook Pro's. But why would Asus be cutting back on it's netbooks. Everyone that was going to buy an over-priced Apple notebook was supposed to go and buy cheap Asus netbooks instead. That's very odd. Instead of buying one MacBook, a person could buy three netbooks for the same money. The netbooks should be flying out of Asus at least twice as fast as before. They say that netbooks will be replacing nearly all other computing devices due to their diminuitive size and cheap cost. This Christmas is the year of the netbook. A netbook in every Christmas stocking. Ho, ho, ho.
    Reply | Link to Comment
  •  
    Nov 13 06:32 AM
    One could weave a jacquard knit with the pattern inherent in Apple rumors over time.
    Same old stuff.
    Ridiculous.
    Reply | Link to Comment
  •  
    Nov 14 08:20 PM
    Commenting on those who were wondering why the Chinese manufacturer are releasing such confidential information. Note that they don't have to, but under Taiwan SEC law, they will need to report any potential loss.

    Note that above report were showing Quanta and Pegatron getting cancelled order, now one had seen how much were being cancel for other OEM manufacturer like FoxConn, Winstron, Uhihan to name a few.
    Reply | Link to Comment
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