Ability Enterprise, a Taiwan-based ODM maker of digital cameras, has downwardly adjusted its target shipment volume for the fourth quarter of 2010 from an originally projected on-quarter increase of 5% to flat growth, according to the company.

As a result, the revenues for the fourth quarter of 2010 are likely to drop sequentially by 5-8%, Ability Enterprise indicated.

The lowering of fourth-quarter 2010 shipment goal is because short supply of key components and the negative impact of appreciation of Taiwan dollar against the US dollar, Ability Enterprise pointed out. The selling of the iPad and iPhone 4 has caused short global supply of small- to medium-sized panels, while ODM makers of notebook PCs have procured key components also used in digital cameras in earlier than expected preparation for the peak sales period before the 2011 Chinese New Year (early February), the company indicated.

Ability Enterprise shipped 4.80 million, 5.85 million and 6.20 million digital cameras respectively in the first, second and third quarters of 2010. Despite lower than expected shipments in the fourth quarter, Ability Enterprise is confident of attaining the 2010 shipment goal of 23.0 million digital cameras and expects 15-20% sequential growth in 2011.