Compal Electronics aims to increase the revenue proportion for non-notebook product lines in 2016 to 30%, according to the company.

Compal president Ray Chen pointed out that the company's notebook ODM shipments are expected to stay flat or drop by a single-digit percentage on year in 2016, while revenues from the business will be about the same. If the company's revenues from non-notebook businesses increase, it will benefit the company's gross margins.

Compal noted that smart handheld devices including smartphones and tablets will be the main growth driver for the non-IT product revenues. In addition, Compal has also been aggressively planning for industrial PC and Internet of Things (IoT) applications, and these new businesses are expected to start contributing revenues in the second half of 2016.

As for its smart medical device business, Compal has also recently established R&D centers for the product line. The company also has an exhibition room for its medical devices at its headquarters.

Chen expects its IoT and wearable device shipments to grow dramatically to 5.6 million units in 2016.