Compal Electronics expects its notebook shipments to reach 40 million units in 2014, up slightly on year, with shipments of tablets to grow significantly to 15 million units, according the company president Ray Chen.

　　Chen pointed out that the company's notebook clients have started placing extra orders since October and expects strong year-end sales in 2013. The notebook industry will have a chance to see shipment growth in 2014 with a PC replacement trend in the enterprise market.

　　However, Chen remains conservative about touchscreen notebooks and expects the products to only account for less than 15% of total notebook shipments. In 2014, the percentage will remain at around 15-20%. Because of the low penetration, Compal's touch panel subsidiary is currently suffering from losses and is expected to achieve break-even operations in the second quarter of 2014.

　　Compal has announced revenues of NT$164.85 billion (US$5.57 billion) for the third quarter, down 1% sequentially with gross margins reaching 4.2%.

　　Compal shipped 37 million notebooks in 2012 and is expected to ship 38 million in 2013.

　　As for market rumors that Compal's subsidiary has landed iPad mini orders from Apple, Chen declined to comment on specific clients, but pointed out that the company has landed tablet orders from both new and existing clients and will start mass shipments in April or May 2014.

　　Chen pointed out that Compal has already started mass producing servers for its existing clients and will have a new client in 2014, which some market watchers speculate to be Lenovo.

　　In the third quarter, 82% of Compal's revenues were contributed by notebooks and the percentage will drop to 80% in the fourth quarter. After acquiring Compal Communications in 2014, the percentage will drop further to only 70%.

　　Compal is expected to ship three million LCD TVs in 2013 and the company's relationship with Toshiba has become tighter after the announcement it will acquire the Japan-based vendor's plants in Poland.