THT Research Releases IT OEM Procurement Data for 2005/2006
13 January 2006
CHICAGO, January 10 -- THT Research (THT) (http://www.thtresearch.com), a leading research firm covering information technology contract manufacturing, today announced 2005 and estimated 2006 Taiwan procurement figures for the world's leading information technology and electronics companies.
Total procurement of information technology products from Taiwan reached US$66B in 2005, up nearly 20% from original expectations, with the majority of orders coming from the 20 largest international procurement offices. "Notebook computers and handsets continued to drive Taiwan procurement, while TFT-LCD and LCD TV panel orders showed a significant rise," explained YD Gordon of THT Research. "The top procuring firms (with over US$2.5B in procurement) in 2005 were HP, Dell, Lenovo, Sony, Apple, Toshiba, and NEC.
Companies showing significant increase in outsourcing include Apple (from US$3B in 2004 to US$3.9B in 2004, US$5.0B in 2005, and an estimated US$6B in 2006); Dell (from US$7.2B in 2003 to US$9B in 2004, US$10.2B in 2005 and a forecasted US$12B in 2006); and Hewlett-Packard (from US$16B in 2003 to US$19.5B in 2005 and a forecasted US$22.5B in 2006), according to THT Research data and forecasts.
"Hewlett-Packard, the IT company with the largest procurement from Taiwan in terms of value, plans to strengthen its relationships with Taiwan suppliers in light of growing competition from Dell and Lenovo" explained YD. "HP procured around US$20.5B in IT products from Taiwan in 2005 and THT forecasts procurement of US$22.5B in 2006. In addition, HP's Taiwan-based Product Development Center (PDC) is the company's largest R&D facility and is responsible for designing and developing desktops, notebooks, servers, and handheld devices."
Sony, which procured around US$6.5B from Taiwan in 2005 and US$5.2B in 2004, is expected by THT Research to procure US$6.9B in 2006. Sony's orders focus on TFT-LCD panels, OLED panels for MP3 players, Sony VAIO PCs, game consoles, DVD players, and electronic components.
"In a continuing trend, the boundaries between OEM (original equipment manufacturing), ODM (original design manufacturing), and EMS (electronic manufacturing services) continue to blur," said YD. Singapore-based Flextronics, a leading EMS company, is working to increase the integration of Taiwan suppliers into its supply chain in light of the growing competition from Hon Hai (Foxconn) of Taiwan. Flextronics spent around US$1.2B in Taiwan in 2005 and THT forecasts that it will spend close to US$1.6B in 2006.
"Another interesting trend is the increasing independence of the China manufacturing arms of Taiwan companies - and the pressure this is putting on managers at headquarters in Taiwan," stated YD. "This year R&D decisions will increasingly be made by China offices and within a couple of years financial decisions will begin to be made there too. All of which means that IPOs will focus more on Shanghai, less on Taipei - something that was against the odds until recently. This is assuming that China continues its unsteady march toward a free, yet censored, economy."
About THT Research
THT Research is a leading provider of research and information on global information technology contract manufacturing. Managers throughout the IT world rely on THT's Contract Manufacturing Database to provide the answers they need for their business decisions. Covering over 13,000 companies, the database is updated weekly and fully searchable. Full, ongoing access to THT's database may be purchased, as well as access to company or sector-specific segments. In addition, with research teams in Asia, Israel, and the US, THT is adept at providing custom research on companies, sectors, and markets quickly and confidentially. Visit http://www.thtresearch.com and sign up for THT's free weekly e-newsletter to get the latest contract manufacturing news to your desktop.
Contact:
Samantha Lin, THT Research
office@thtresearch.com
Susan Myers, THT Research
pr@thtresearch.com
+1-312-224-8585
Source: prnewswire
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