RISING COSTS: Rival computer contract maker Compal Electronics last week also reported falling gross margins due to continued increases in key component costs

Taipei Times
Date: Mar 27, 2018
By: Lisa Wang  /  Staff reporter

Quanta Computer Inc (廣達), Apple Inc’s main assembler for MacBooks and the Apple Watch, yesterday reported a 5.1 percent contraction in earnings last year as its gross margin continued to fall.

Gross margin fell for a fifth quarter in a row to 4.2 percent last quarter and averaged 4.47 percent for the full year, down 0.74 percentage points from 5.21 percent in 2016, company data showed.

The notebook computer maker, based in Linkou District (林口), New Taipei City, did not elaborate on what caused the gross margin decline.

However, its closest rival, Compal Electronics Inc (仁寶), last week said continuing increases in key components — especially passive components — had affected its margins.    [FULL  STORY]