PC maker Compal Electronics Inc is planning to move into the handheld and server markets. The Taiwanese company, which was recently ranked as the second most profitable systems vendor in the world, may be considering a merger with local CE-based Palmtop manufacturer, Palmax Technology Co Ltd, to help move into what the company sees as the post-PC era. In an interview with the Taiwanese Commercial Times, Compal’s general manager Ray Chen said that the firm envisaged a future of handheld devices and network terminals linked to the internet and company server networks that would be processing massive amounts of data.
Compal’s decision may also have been motivated by the changes that are occurring in the Asian PC market. The market shift towards white box PC manufacturing – stripped-down companies making OEM machines for retailers – has led to a lowering of margins for traditional manufacturers. Compal and other manufacturers had found notebook computers to be profitable but that market now appears to be becoming saturated.
