Like other Taiwanese companies, notebook PC maker Compal faces a simple problem: Dell giveth and Dell taketh away. The American giant is increasing the amount that it buys from Taiwanese suppliers by 20% this year, to $12 billion. But Dell, determined to slash prices to compete with Hewlett-Packard and Lenovo, also is putting more pressure on suppliers like Compal to lower costs. As a result, investors fret that Compal's already slim profit margins will shrink even more. To reduce its reliance on notebook sales to the likes of Dell, Compal is expanding in displays. In May, Toppoly Optoelectronics, an LCD panel maker in which Compal is the largest shareholder, won Taiwanese government approval to take over the display subsidiary of Philips Electronics.
(over prev. year)
|Return on Equity||
|Total Return on Sales (12-mo.)||
As of 5/31/06
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|Industry||Computers & Peripherals|
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