Companies engaged in the notebook industry supply chain are still uncertain about end-market demand in the second half of this year but are confident that 2024 will be stronger, according to industry sources.
Consumer market sales for China's 618 shopping festival remain weak with rumors that JD.com may extend 618 sales promotions, which typically run from June 1–18, to the end of June to stimulate spending.
Gaming notebook sales will continue to grow this year in China, sources said.
Taiwan-based notebook ODM Clevo, which focuses on China's gaming PC market, expects to see recovery in the second quarter of this year, benefiting from replacement momentum brought on by new graphics cards.
Accumulated revenue from January–April from Cleveo's notebook business increased 16% on year. Notebook revenue in the second quarter is expected to witness double-digit sequential and on-year growth.
Supply chain players noted that notebook inventory corrections have come to an end and prices for some components have begun to rebound, indicating market demand is there and customers will need to replenish inventories. However, demand for finished products remains sluggish. Whether the market will recover in the second half remains unclear.
Acer chairman and CEO Jason Chen stated in a recent interview that the market will not see significant growth in the second half of the year, despite distributor inventory corrections reaching an end. Chen estimates the PC market will see a double-digit decline for the year, adding that getting back to pre-pandemic levels will take a lot of work.
Despite a slow year in 2023, Chen said opportunities in the industry will always exist, it is just a question about how much. Chen's view echoes that of the top two notebook ODMs, Quanta Computer and Compal Electronics, both of which expect shipments in 2023 will witness a double-digit slide compared with 2022.
ODMs believe the second half of the year will outpace the first but emphasize that it does not mean the market has recovered or that there is a strong chance for the market to rebound in the second half.
Many supply chain players have expressed that stability in the second half would be sufficient, as current order visibility is low. Industry players expect to see short lead-time orders and short-term orders in the second half; however, large orders and long-term orders are unlikely.
At the ongoing Computex 2023 show in Taipei, Taiwan, graphics cards from Nvidia and Advanced Micro Devices (AMD) are being showcased, as well as new processor platforms from Intel and AMD.
Intel is also demoing its Meteor Lake processor, which is expected to launch in 2024. Notebooks equipped with the new processor are not expected to hit the market until first-quarter 2024.
Article translated by Eifeh Strom
