Although notebook and tablet sales were significantly boosted by the stay-at-home economy in the second quarter in the wake of the coronavirus outbreak, IT companies have mixed views about the prospect of such demand continuing in the third quarter, according to sources from the upstream supply chain.
However, they all expect demand for datacenter- and server-related hardware to stay robust until the end of 2020, the sources noted.
The sources pointed out that most short lead-time orders for PCs and tablets in the second quarter were already fulfilled completely by the end of June and makers' utilization rates have also started returning to regular levels.
However, most of their order visibility for the third quarter at the moment is only about one to 1.5 months, creating a rather big uncertainty, the sources said.
These suppliers are also divided about whether brand clients will still aggressively unveil large amounts of new products for the second half of 2020 as they did in the past few years, the sources noted.
Since demand for datacenter servers continues picking up, component suppliers will still see the server segment of their third-quarter revenues grow sequentially, the sources added.
IT companies expect server demand to remain stable in 2H20
Photo: Digitimes file photo
Article translated by Joseph Tsai
