Taiwan's notebook battery makers enjoying rising global market shares

Taipei, April 11, 2005 (CENS)--Along with the rising global market shares held by Taiwan's makers of notebook computers, demand for upstream battery modules made by domestic manufacturers, including Simplo Corp. and DynaPack Corp., is also rising.

Simplo and DynaPack, Taiwan's two leading manufacturers of notebook computer battery modules, see their combined share of the global market run close to 30%. Simplo is very likely to unseat Sanyo of Japan as the world's largest producer in the line this year.

Both Simplo and DynaPack will see after-tax earnings per share exceed NT$6 (US$0.19 at US$1:NT$31.3) this year, outpacing those recorded by such large-sized manufacturers of notebook computers as Quanta Computer Inc. and Compal Electronics Inc.

To offset the impact of the slim-margin era, domestic contract manufacturers of notebook computers have won the support of big brands to procure needed parts and components at home, which has benefited the manufacturers of such hi-tech electronics parts as game-console connectors and components for cell phones and notebook computers in terms of shipments and market shares, given the appreciation of the New Taiwan dollar against the U.S. greenback.

Simplo said it would see shipments reach 11 million battery modules for a 20% global market share this year, compared with last year's 17%. DynaPack will aim to ship 4.53 million battery modules to raise market share to 8.24% this year from last year's 5.8%.

DynaPack said its shipment growth this year would be contributed by the increase of orders from Hewlett Packard and the inclusion of a new customer—Apple Computer Inc.

At present Sanyo Corp. and Sony Corp. of Japan are among the world's leading manufacturers of lithium battery modules, but they are gradually shifting production to such electronics products as cell phones and digital still cameras.

Simplo president Sung Fu-hsiang said his company shipped 7.5 million lithium battery modules for a 17% global market share last year, only behind Sanyo of Japan. Despite the rising of local currency, Simplo said it would see a sharp growth in orders from such big names as Hewlett Packard Inc. and Dell Computer Inc.