Taipei, Sept. 22, 2008 (CENS)--Wistron Corp., one of the leading makers of information technology products in Taiwan, is assessing the feasibility of taking over Dell`s overseas assembly factories, which Dell plans to sell in hope of cutting costs and streamlining production process, according to the firm`s chairman Simon Lin.

Dell`s executives said market for the company`s products has yet to improve as a result of downsized orders from governments and small- and mid-sized businesses. Dell is currently the world`s No.2 notebook-computer supplier.

Although the global economic downturn has undermined the willingness of enterprises to buy information-technology products, Lin said his company has been free from the impact thanks to its diversified product portfolios. Institutional investors recognize Wistron as Taiwan`s most diversified supplier of notebook computers, whose product lines also include mobile phones, LCD TVs and servers. Totally, these none-notebook products will account for 30% of the company`s revenue this year.

Lin pointed out that market for consumer-end IT products would not likely see excessive inventory backlogs by the end of this year from retailers` data. But he is not sure about whether the enterprise market will remain as strong in the fourth quarter as the third quarter.

Lin added that although enterprises might become conservative about IT procurements in the fourth quarter, the shrinkages would pose a relatively moderate effect to his company`s earnings performance for this year. Industry watchers pointed out that Wistron`s notebook business has been mostly focused on consumer market, raising the possibility that the company`s notebook shipments will continue growing into the fourth quarter. Industry watchers estimated the company`s notebook shipments to rise 35% in the third quarter from the second quarter, higher than the company`s projected 20%.

Wistron projects shipments of notebook computers at 21 million systems throughout this year. Lin said the goal would not be adjusted regardless of the economic slowdown. The company delivered 1.7 million systems in August and the figure will surge to two million systems in September. Peak time, he said, would continue into November this year.

Market prospects may not be as bright as for Compal Electronics Inc., which specializes business notebook computers and has been contracted to supply the wares to Dell. Compal`s president, Ray Chen, recently cut the company`s shipment goal for this year by 10%, to 28-29 million systems.

(by Ken Liu)