Taiwan-based notebook component makers originally planned to raise quotes to reflect increases in labor and material costs, but it is practically impossible for their clients to accept price hikes in the first quarter 2011 when the market is off-season, according to sources from component makers, adding that they are resting hopes on the second quarter when vendors are expected to launch new models at higher retail prices.

Sources from notebook makers pointed out that downstream brand vendors are also facing issues of weakening market demand and are hoping that their upstream component partners can bear with their difficulties.

As the notebook industry gradually steps into maturity, notebook prices in the future will only decline. In order for upstream makers or downstream vendors to survive through the crisis, boosting their production efficiency and lowing costs, as well as cutting into non-notebook product lines, which have better profitability, are strategies most of the players are working on, the sources pointed out.