Notebook component makers to see dropping prices in 2010
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Taiwan-based makers of notebook components such as connectors and hinges, are expected to see their selling prices drop in 2010 as notebook makers are transferring the pressure from falling quotes to them, according to sources from component makers. However, since overall notebook shipments will increase in 2010, component makers may see gross margins drop, but profit may still see growth, the sources added.
Notebook makers have competed fiercely by cutting their quotes to vendors, are now asking component makers to adjust their prices to help maintain gross margins. They have also increased the frequency that prices are renegotiated from annually to quarterly, and some are even demanding adjustments on a per order basis.
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