STAMFORD, CT – Worldwide PC shipments increased by 8.9%, totaling 62.7 million units in the first quarter of 2007, according to Gartner.
The U.S., Europe, Middle East and Africa, and Latin America performed better than the previous forecast, while Asia/Pacific and Japan shipments were lower than expected. Asia/Pacific surpassed the U.S. For the first time, PCs will take second place in shipments.
In the first quarter, HP's worldwide PC shipment growth outpaced the industry average, increasing 28.7%. Meanwhile, Dell experienced below-average growth across many regions. Acer moved into the third position for worldwide PC shipments, exceeding the industry average across all regions. Lenovo dropped to fourth, but achieved its highest year-over-year growth rate since acquiring IBM's PC division.
In the U.S., PC shipments grew 2.9% for the quarter year-over-year. These results were higher than Gartner's forecast of 0.6% growth. Dell maintained the lead in U.S. shipments; however, HP narrowed the gap for the top spot in the U.S. market.
PC shipments in Europe, the Middle East and Africa totaled 21.6 million units, a 13.7% increase from the same period last year. In Asia/Pacific, PC shipments reached 15.7 million units, a 10.3% increase year-over-year. The PC market in the first quarter in China grew 15.2%, with desk-based PC growth of 10.1% and mobile PC growth of 38.3%. PC shipments in Latin America totaled 5.1 million, a 21% increase year-over-year; mobile PC shipments increased 86%. Japan surpassed 4 million units in the first quarter, a 6.8% decline from the same period last year.
STAMFORD, CT – GartnerInc. lowered its capital equipment spending forecasts for 2007 and 2008. Overall capital spending is projected to hit $55.2 billion in 2007, down 1.5% year-over-year. In 2008, capital spending is projected to grow 10.7% to $61.1 billion, said the research firm.
Worldwide semiconductor capital equipment spending is forecast to total $40.6 billion in 2007, a 3.2% decline from 2006. The market is expected to rebound in 2008, with spending expected to reach $46.7 billion, a 14.9% increase, said Gartner. This is below its previous forecast at the end of 2006.
After growing more than 18% in 2006, packaging and assembly equipment market revenue is projected to decline 12.2% in 2007, but will grow 20.2% in 2008. ATE sales will slow in 2007, with an expected decline of 11.2% for the year, the firm said.
RESEARCH TRIANGLE PARK, NC – Top-five PC maker Lenovo will lay off 650 workers and move 750 jobs closer to the company’s suppliers and manufacturing operations. The company will take a pretax restructuring charge of $50 million to $60 million, most in the current quarter.
The move will save the former IBM PC unit about $100 million in the current fiscal year. The 1,400 positions represent about 5% of its global workforce, and Lenovo expects to complete most of the changes in the next 12 months.
BOSTON – Transit times from Asia are leveling as the region is reporting typical, slow market conditions characterized by adequate space to meet demand and stable rates, says Trans Global Logistics in a recent update. Airfreight demand in May will pick up, the logistics provider said.
Southeast Asia experienced strong demand for airlift late last month; transit times were longer because of congestion at regional air hubs. A number of carriers have imposed fuel surcharge increases, and TGL expect more increases this month.
While May demand will rise, adequate capacity should keep transit times and rates in line. The weeklong Labor Day Golden Week holiday starts May 1. Factories close for the week and, as a result, the company expects a surge of air shipments before the holiday.
WASHINGTON – Congress this week introduced into legislation The Patent Reform Act of 2007, a bill aimed at helping the filing process and to ease the financial burden to companies that infringe on existing patents.
The Senate bill is cosponsored by Patrick Leahy (D-VT) and Orrin Hatch (R-UT), while the House version is cosponsored by Howard Berman (D-CA) and Lamar Smith (R-TX).
The reform includes provisions to “balance” awards for damages, limiting them to only economic value of the improvement; establish fair standards for punitive damages; restrict forum shopping, and improve patent quality. In addition, the bill would create a “first-to-file” system (the American system is the only one in the world that still grants patents to the first inventor rather than the first to file an application); according to patentlyo.com, the bill makes it easier to file a patent application without the inventor's cooperation. Leahy says the bill creates a more streamlined and effective way of challenging the validity and enforceability of patents. He also claims, “American IP industries account for over half of all U.S. exports, represent 40 percent of our economic growth and employ 18 million Americans,” which makes strengthening intellectual property that much more important to economic growth.
SAN JOSE – SEMI this week revised its January and February semiconductor equipment book-to-bills. Corrected figures for February show the three-month average for bookings was $1.4 billion, with billings at $1.43 billion, and a ratio of 0.98.
Corrected figures for January show the three-month average for bookings was $1.45 billion, with billings at $1.45 billion, and a ratio of 1.0.
The trade group had earlier reported book-to-bills of 1.04 and 1.05 for January and February, respectively.
The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.
WASHINGTON -- An English translation of the final Korea RoHS legislation, adopted April 2, is available.
Information on differences between the draft bill and final bill (also in English) are available here. The translations were made available by Eco-Frontier.
Separately, China’s Ministry of Commerce has promulgated Management Measures for Recycling Renewable Resources, which goes into effect May 1.
SHANGHAI – Global mobile phone shipments were approximately 970 million units with a production value of about $79 billion in 2006. Nokia ranked first in sales volume, at 347.5 million units, according to the just-released China Mobile Phone Industry Chain Report, 2006-2007.
EL PASO, TX – Powell-Mucha Consulting, Inc. and SMTA have announced a series of online presentations on building a competitive EMS brand. The first, Understanding Competitive Advantage in EMS Services, is scheduled for April 25 from 1-2 pm EST. The presentation will cover classic models of competitive advantage and how they relate to EMS strategies; typical services offered within the industry; a methodology for analyzing your company’s strengths and weaknesses prior to marketing strategy development, and key considerations in developing a unique value proposition. For information and registration visit: http://smta.org/education/presentations/presentations.cfm#competitive. The cost is $75 for SMTA members and $150 for nonmembers. Mucha, a regular columnist for Circuits Assembly, is a former EMS executive. In 2001 she founded Powell-Mucha Consulting Inc., an EMS consultancy specializing in market positioning, strategic planning assistance and training.
BANNOCKBURN, IL – The IPC Solder Products Value Council has released a white paper addressing current global supply and demand of tin and silver. The cost of tin and silver has reached 19-year highs, says the council, and global demand for tin will exceed production by 30,700 metric tons, according to The International Tin Research Institute. The primary reason behind this shortage is a 30% reduction in tin exports from Indonesia, according to the white paper. In the past six months, the price of tin has increased more than 40%, and lead-free solder paste contains more than 85% tin. Over a 15-month period, the cost increase of tin and silver combined in solder paste is $6.58 ($12.28 -$5.70) for tin, and $4.53 ($12.22-$7.69) for silver, a total of $11.11 in higher costs per kg of solder paste, reports the council. This represents a cost increase equivalent to between 20 to 30% of the global average sales price for solder paste sold for electronics assembly. The council recommends electronics assemblers closely communicate with soldering material suppliers regarding supply and availability during this period of volatility in the market price of metals.