Compal server business to benefit from Lenovo, Dell orders
Compal Electronics has recently expanded its server R&D team to 300 technicians and will continue to recruit more talent because of increasing server orders from Lenovo and the existing ones from Dell, according to sources from the upstream supply chain. Compal declined to comment on its clients, but said the company’s server business will see a much smaller loss in 2015 and have a chance to turn profitable in 2016.
With weaker-than-expected global notebook shipments in the first half of the year, related players are concerned that overall shipments may drop 5-10% on year in 2015. Seeing the trend, most ODMs have turned to non-notebook product lines to seek a new growth driver.
Currently, Quanta Computer, Wistron, Inventec and Pegatron Technology all have operations in the server industry, while Quanta, Wistron and Inventec are major server suppliers worldwide. Although Compal is a latecomer in the industry, the ODM has recently started receiving orders from clients after being expanding its server R&D team.