Taipei, Nov. 24, 2008 (CENS)--Better-than-expected sales at Dell and HP in the quarter ended in October have given a huge boost to Taiwanese contract suppliers, indicating business downturn in global high-tech industry is not as terrible as expected.

The festering global economy has dealt a heavy blow to various industries including the high-tech sector, heavily battering share prices of Taiwanese hi-tech contact suppliers like Hon Hai Precision, Quanta Computer, Wistron and Compal Electronics.

Previously, some institutional investors forecast Dell to receive heavier blow from the impact of the global financial crisis shortly after HP released pleasant results for the quarter ended in October. However, Dell`s results beat their forecasts by presenting better-than-expected performances.

Shinning financial results finally cap 14 consecutive days of excessive sales of Taiwanese contract electronics manufacturers` shares by foreign institutional investors.

Some institutional investors pointed out Taiwan`s hi-tech shares had stumbled too much in the latest round of correction. They noted encouraging results of Dell and HP will give investors a sign of relief.

Market analysts pointed out Dell and HP would speed up outsourcing while closing down some inefficient in-house production lines, a bright outlook for Taiwanese contract suppliers.
(by Ken Liu)