Manufacturing News

Taiwanese Contract Suppliers Benefit from Hot Sales of Kindle Fire

Considerable presale orders for its Kindle Fire tablets have driven Amazon to place rush orders with its contract manufacturers for 40-50% more supply of the devices. Taiwanese suppliers involved in Amazon's supply chain have also enjoyed slices of the business.

The popularity of Kindle Fire has been endorsed by Best Buy, one of the U.S.'s largest online PCD (portable communication device) retailers, which has forecast that the tablet PC will become its best-selling product during the Christmas and year-end sales season. Some market observers also predicted that sales of Kindle Fire would exceed 5 million units in the remaining two months of this year, and cap iPad's first-month sales.

To fill huge consumer demand, Amazon has reportedly placed rush orders twice with its contract suppliers, thus having benefited a couple of Taiwanese electronic manufacturers in the form of growing revenue figures since October.

For instance, Quanta Computer Inc., the contract assembler of Kindle Fire, attained a 21% monthly growth in its combined revenue of NT$107.2 billion for October, and Prime View International Co., Ltd., Amazon's e-paper display supplier, also recorded a new high of NT$5.329 billion for October revenue.

In addition, Foxconn Technology Co., Ltd., a PC case maker, also scored combined revenue of NT$14.3 billion in October thanks to rush orders from Amazon, while ILI Technology Corp., a touch sensor IC designer locked in Amazon's supply chain, earned NT$1.048 billion in sales revenue.

Noteworthy is that Hon Hai Precision Industry Co., Ltd., the world's largest EMS (electronic manufacturing service) provider, will also likely join Amazon's supply chain in 2012, when the Kindle Fire 8.9-inch models are believed to be manufactured by the Taiwanese company.

Institutional investors noted that Kindle Fire, retailing for only US$199 per unit and featuring an exclusive access to Amazon's plentiful digital content and application services, is very likely to threaten iPad's dominance in the global market for tablet PCs in the years to come, a good news to Amazon's Taiwanese contract manufacturers.

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