Compal Electronics president Ray Chen has pointed out that Foxconn Electronics' (Hon Hai Precision Industry's) involvement of notebook manufacturing business already has some effect on the industry and he expects Foxconn to have a chance of gaining 8-10% of global notebook ODM/OEM orders in 2011, a shipment volume more than 20 million units.

Market watchers forecast that Foxconn will ship 5-10 million notebooks in 2010, and if the company is able to double the volume in 2011, the company will have a chance to advance as a global top-four notebook maker.

As Quanta Computer and Compal only had consolidated gross margins of 4.1% and 4.2%, respectively, in the first quarter of 2010 due to price competition, Chen believes price competition will not last forever and after brand vendors settle their order distribution plans for 2010-2011, the competition for market share should stop.

Compal expects its notebook market share will reach 25% in 2010. Although there are new competitors competing for share, Compal is confident of maintaining its position in 2011, Chen noted.

Chen also commented on the company's competitors which are working aggressively in diversification and dropping their revenues proportion from notebooks, saying that this is due to lack of competitiveness.

Chen pointed out that the company's strategy is to work aggressively on expanding its vertical integration and also on increasing its in-house made component capacity. Meanwhile the company will focus on developing unique industrial designs.

Chen also noted that the company will not rule out the possibility of competing for orders from Asustek Computer in the future.