Laptop computer distribution worldwide may reach 128 million units this year, as PC makers including Dell flock to produce low-cost notebooks.

Jane Tseng, an analyst from the Topology Research Institute in Taipei, has increased her earlier market estimate of 120 million units by almost 7 per cent, as key PC manufacturers follow Asustek Computer’s focus on low-cost models. The new projection exceeds last year’s notebook shipment figure of 93 million units by 37 per cent.

February’s forecast of 3-5 million units has now been raised to around 10 million units. Tseng also revealed that during the first half, Asustek sold two million Eee PCs. On the basis of huge demand, local contract makers of notebooks, headed by Quanta Computer, have also predicted an 8-10 per cent increase in notebook supply.

While there may be a risk of consumers opting for low-cost laptops over standard laptops, due to inflation, there would be no ill-effects for the economy as a whole. Tseng expects a slow growth rate of notebook shipments due to the delay in sales of Intel’s new Montevina chip, the second-generation version of its mobile Centrino platform.

A better supply of battery cells is expected in the third quarter, as well as the possibility of a tight supply of LCD panels and plastic casing, because of the growing demand for notebooks. X

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