Upstream notebook supply chain players predict that notebook shipments in the second quarter of 2011 will have a chance to grow 15-20% sequentially benefiting by Intel's fixed notebook platform to start mass shipping plus a PC replacement trend will start among enterprises.

However, the biggest concern toward such growth is the damage from tablet PCs since most of the brand vendors have chosen the second quarter for launching their tablet PCs and the strategy should directly impact notebook sales.

As for the first quarter, some component makers believe that the top-five notebook makers will see a sequential shipment drop of 4-6% in the first quarter because of fewer working days in February and Intel's defective chips that delay brand vendors' plan of mass shipments.

Since Hewlett-Packard (HP) has reduced its order volume of the new models, Foxconn Electronics (Hon Hai Precision Industry) in the first quarter only received about 1.5-1.7 million units from HP and with the orders from Apple and Sony, Foxconn will ship less than three million notebooks in the first quarter of 2011.

However, starting in the second quarter, Foxconn will have chance to see its notebook shipments increase to five million units.