Apple's Taiwan-based iMac manufacturer Quanta Computer has seen its profit margins fall by approximately 30 per cent in the first half of its business year, reports DigiTimes.
Quanta's margins fell from 13.48 per cent in the same period last year to 9.3 per cent in the first half of this year. Like many manufacturers, the company's been cutting prices in an attempt to secure orders. The production of 15-inch LCD iMacs was to have been the company's top product for this year, but DigiTimes reports that production of these at Quanta was discontinued in July.
The company expects to ship between 450,000-500,000 notebook PCs in August, the majority to Dell, and 40,000 17-inch iMacs for Apple, DigiTimes claims.
Taiwanese manufacturers are facing increasing downward-pricing pressures from customers, such as Apple and Hewlett-Packard, in the face of the slow IT market. The wave of consolidation within the industry has also reduced Taiwanese manufacturers’ bargaining power.