We expect the sequential growth to extend on the back of increased orders from its well-diversified client base. Thanks to the success of a low price strategy in the down cycle, Dell surpassed Compaq in 1Q01 as the world's largest branded PC vendor in terms of market share. Dell forecasts NB PC shipments of around 3.5-4.0m units in 2001, versus 2000 shipments that totaled 3.0m. NB PC output will be the driving force behind Quanta's growth this year, while revenue from handset and server business remains idle. Better than expected gross margin and revenue growth has given a big boost to operating profit.
Profitability also stands above local peers.
In addition, we see lower component costs and depreciation of the Taiwan dollar offsetting lower price strategies adopted by branded PC venders. We believe Quanta will be the biggest winner in the current PC sector downturn on the back of its entrenched leadership position and successful marketing strategy.