Compal isn’t a very big name in the US. But the Taiwanese company is one of the largest computer makers in the world. Compal has contracts with big computer companies including Acer, HP, and Apple and actually manufactures many of the machines sold under their names.

So amid all the reports of declining profits in the computer industry, it only makes sense that Compal should see a revenue decline. Bloomberg is reporting that Compal’s first quarter income fell to about $83 million from the same period last year. Part of the reason is the demand for low-priced notebooks like netbooks has driven down the overall price of laptop computers. Compal has also lowered its estimate for how many notebooks it expects to ship this year, which seems in line with recent reports indicating that notebook sales are down across the board.

Compal is working on some low cost netbooks, including a model that may use the Google Android operating system. This move could help keep the company competitive while PC sales are declining, since netbooks are still one of the few bright spots in the industry.

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One reply on “Low price computer sales eat into Compal’s profits”

  1. Shouldn’t their ‘clients’ be asking/developing these devices and Compal doing the work to bring such things to market?

    It seems to me Compal needs better clients who don’t duck out of sight watching a market develop, prosper, and pass over them like a diesel locomotive running over hobos.

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