Taiwan-based notebook ODMs, mainly Quanta Computer, Compal Electronics, Wistron and Inventec, will find it considerably difficult to increase operations in 2016 mainly because global notebook demand will shrink and possible growth in non-PC shipments will not be enough to cover the decrease, according to Taiwan-based supply chain makers.

Quanta originally expected its revenues to reach NT$1 trillion (US$30.51 billion) in 2015, but the company is now only expected to achieve NT$996.8 billion. Despite seeing stable notebook shipments, weaker-than-expected Apple Watch shipments were the main factor for the ODM's failure to achieve its goal.

In 2016, Quanta will remain the main notebook supplier of Hewlett-Packard (HP) and Apple and will see increasing orders from Asustek Computer and Acer. However, with HP, Asustek and Acer's notebook shipments expected to be weaker than those in 2015, plus Foxconn Electronics (Hon Hai Precision Industry) will share part of Apple's second-generation Apple Watch orders, whether Quanta will be able to maintain shipment growth in 2016 is still uncertain.

Compal will be the main notebook supplier for Dell and Lenovo in 2016. The ODM's shipments to Lenovo are expected to stay flat in the year, but its orders from Dell, Acer and Asustek will turn weak, causing the ODM to have a low chance to achieve notebook shipment growth.

Compal's LCD TV and smartphone shipments will benefit the ODM's operations in 2016, but the effect will be limited.

Suffering from two years of weak operations, Wistron will have a chance to achieve major growth in 2016 depending on its iPhone orders from Apple. Wistron's notebook shipments are unlikely to see growth in 2016, but the company is rumored to have landed orders for the next-generation iPhone.

Inventec's fourth-quarter revenues had flat performance compared to the third and the ODM is expected to suffer a 10% on-year revenue drop in 2015. Inventec is also expected to have a low chance of achieving shipment growth in 2016, and shipments of non-notebook products such as smartphones and wearable devices, will be the main factors deciding Inventec's performance in 2016.