Quanta Computer is generating record-high profits amid a sharp decline in staff count. From the high of 112,000 employees by the end of 2018, Quanta's workforce has decreased by 49.1% to around 57,000 by the end of 2023.
The AI boom is shifting the revenue structure of original design manufacturers (ODMs) to the production of servers and automotive products, which involve more automation in production than the previous focus on notebook (NB) and Apple Watch manufacturing. These changes effectively reduce product line staff and boost profits.
The stronger growth in server and automotive products is slowly changing the composition of the ODM revenue structure.
Winstron's PC-related sales (NB, desktops, and monitors) accounted for 80% of all revenue in 2023 but are expected to drop toward 75% in the next year. Non-PC-related sales profits already account for 65% of profit share, and will most likely increase with further AI server development.
Quanta's notebook revenue share dropped to 30~35% in the first quarter of 2024, from 35~40% in the third and fourth quarters of 2023. The decline in notebook revenue share reflects the rapid growth of AI servers. Quanta's continuous efforts in the automotive market also maintain a double-digit growth momentum.
Barry Lam, the founder and chairman of Quanta Computer, argues that the barrier to entry into the autonomous automotive industry is higher than ever, EVs and EUVs alike. In addition to a long product life cycle, high factory standards, tariff protection policies, and integrated AI computers, manufacturers must consider measures to withstand extreme temperatures and suspension.
