Taiwan-based makers of PC cables, power supplies and cooling modules have upwardly adjusted quotes to notebook makers to reflect increased material cost as the international copper price is maintaining at around US$7,400 per metric ton, sources from component makers noted.
Compal Electronics president Ray Chen also previously estimated that some component quotes will start rising in May which would impact related industries in June.
Sources from cable makers noted that several makers have already successfully transferred some costs to their downstream clients and expect to see stronger gross margins in the second quarter than in the first.
Meanwhile, sources from a power supply maker also noted that the company has increased its quotes by about 10% and its clients' reaction toward the increase has so far been positive.
Sources from cooling module makers noted that their quote increase will be based on a per project basis. Orders with large volumes, but low profits will be priority for adjustment.
In addition to increasing their quotes to downstream players, makers are also contacting upstream raw material suppliers to cut their prices.
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