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Wednesday, 21 September 2011 - Quanta says Taiwan staff down as client orders fall |
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The vehicle, developed at the city's Free University, negotiated traffic lights and intersections with the help of cameras and a laptop.  Video  Skin strengthened with spider silk can stop a bullet Holiday battle begins with “Gears 3” Follow Reuters Facebook Twitter RSS YouTube Read Congressman Phil Roe performs CPR on man at airport 20 Sep 2011 Actor Tom Sizemore arrested, held briefly in Los Angeles 20 Sep 2011 Eleventh victim confirmed killed in Reno air crash 20 Sep 2011 Philadelphia police complain about filthy stations 20 Sep 2011 Fed looks set to ease policy as U.S. outlook dims | 12:13am EDT Discussed 132 Obama to propose $3 trillion in deficit cuts 74 Geithner’s ”succinct” message irks Europeans 53 New York meetings open to avert Palestinian crisis Watched Self-driving car takes to the road Tue, Sep 20 2011 Human skin strengthened with spider silk can stop a bullet Tue, Sep 20 2011 Scarlett's naked pics, Tyler Perry is highest paid Wed, Sep 14 2011 Quanta says Taiwan staff down as client orders fall Tweet Share this Email Print Related News RIM will struggle to restore credibility: analyst Tue, Sep 20 2011 BlackBerry bashed as questions swirl about future Fri, Sep 16 2011 RIM results, outlook stun investors even after warning Thu, Sep 15 2011 Developers get early taste of Windows 8 Tue, Sep 13 2011 Apple wins German court ruling on Samsung tablets Fri, Sep 9 2011 Analysis & Opinion Tech wrap: RIM’s missteps stir talk of sale Tech wrap: Facebook delays IPO Related Topics Technology » Media » iPad » By Clare Jim TAIPEI | Tue Sep 20, 2011 11:23pm EDT TAIPEI (Reuters) - Quanta Computer Inc, the world's largest PC contract maker, said on Wednesday that employees at its Taiwan production line number less than 2,000, down from about 3,000 in the first half, following a decline in client orders. Quanta spokesman Elton Yang said the about 1,000 employees who had left were all contractors and the company would keep staff levels at the Taiwan production line at a minimum as order visibility remained unclear. Tang did not say what the minimum level was, and declined to say which client the affected production line served. Taiwan media on Wednesday reported that the reason for the move was a drop in orders from BlackBerry maker Research In Motion Ltd for its struggling PlayBook tablet device. Fubon Securities analyst Arthur Liao said Quanta's Taiwan factory was specifically for RIM production, and Quanta had shipped 1.5 million PlayBooks in the first half, while RIM had sold only 700,000. Last week, RIM said it shipped only 200,000 PlayBook tablets in the last quarter versus 600,000 tablets expected by analysts, which went on sale globally in June after weathering scathing reviews at a North American launch in April. RIM posted a sharp drop in quarterly profit, painted a dismal picture for the current quarter and said it expected to reach only the lower end of an already reduced full-year outlook. Liao said a cut in the PlayBook production line would have a limited impact on Quanta as RIM accounted for less than 1 percent of Quanta's revenue. Taiwanese contract makers manufacturing non-iPad tablets were likely to scale back production as sales of the products lagged those of Apple Inc, he said. Yet revenue at the contract makers would not be affected materially, analysts said, because tablet PCs, a market created only last year, accounted for a very small portion of their business. At 0300 GMT, shares of Quanta were down 3.33 percent, underperforming the broader market's 0.46 percent rise. Yang added that Quanta was looking to add jobs in China, and said overall notebook shipments in September would be better than expected. Hewlett-Packard Co (HP) said late last month that it planned to drop its TouchPad tablet, launched only six weeks earlier, after the product failed to challenge iPad. Taiwan's Acer Inc is expected to sell 1.5-2 million iConia tablets this year, short of its full-year target of 2.5 million. World No.2 PC contract maker Compal Electronics Inc manufactures Acer's iConia, but Liao expected Compal would not cut jobs like Quanta as its factories are all in China, offering more flexibility on staff mobility. (Editing by Chris Lewis) Technology Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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