POS device and kiosk makers Posiflex Technology and Firich Enterprises have been hit by the coronavirus pandemic, but are expecting a rebound in 2021, according to the companies.

Due to the pandemic, marine shipping costs have sharply risen and some US and European clients have reduced or suspended orders, Posiflex said. The pandemic-fueled demand for notebooks has resulted in shortages of componets that IPC makers also need, Posiflex noted.

Posiflex established a joint venture with Lenovo in April 2020, sharing stakes of 35% and 65% respectively. The JV focuses on supplying Posiflex-produced POS devices and self-service kiosks mainly for Lenovo's existing clients. Starting operation in May 2020, the JV has won orders from three large retail chains in Europe and Asia, with small-volume production having alreay begun.

Currently, North America accounts for nearly 60% of Posiflex's consolidated revenues, Asia Pacific for 26% and Europe for 14%.

The pandemic has caused many US and European clients to defer planned investments, affecting operation of its regional distributors, Firich noted. Tiger de Crystal, a Russian casino for which Firich is a strategic investor and supplier of equipment, stopped operation during March-July 2020 due to the pandemic, and Firich recognized net loss of NT$87.3 million (US$3.0 million) for third-quarter 2020, the company indicated.

The pandemic has been driving development of online casinos, Firich said. To cope with the trend, Firich said it has developed video interactive slot machines for mobile devices. For licensing of video interactive slot machines, Firich will cooperate with Taiwan-based game developers and international online casino operators.

The slot machines have been under trial since October 2020 and may be launched in 2021, with China, Thailand and Vietnam to be major markets.

Source: Companies, compiled by Digitimes, December 2020