Shipments of notebooks from Taiwan-based ODMs will remain strong in the first quarter of 2017 as some brand vendors have been pulling in more orders on short supply of some key components, including display panels, memory products and graphics cards, according to sources from supply chain makers.

Meanwhile, continued replacement demand for business-use Windows 10 models and strong sales of new MacBook Pro products will also keep ODMs busy in the first quarter of 2017, the sources added.

Current supply of some key components are falling short of demand by 20%, and therefore some shipments have been delayed to the first quarter of 2017, a traditional off-peak season for the notebook industry, said Ray Chen, president of Compal Electronics.

Prices for notebook-use panels are also rising, notably the quotes from Innolux, as the supply of notebook displays has been squeezed by strong demand for panels from TV vendors, the sources noted.

The replacement demand for Windows 10 business models that has begun since the second half of 2016 will continue to gain momentum in 2017, added the sources.

Quanta Computer, the sole producer of MacBook Pro products, expects its notebook shipments to be better than expected in the fourth quarter of 2016 and will slip only 2-3% on quarter from the previous quarter, according to company vice chairman CC Leung.

Orders for MacBook Pro models will remain strong in the first quarter of 2017, stated the sources.