The current market for notebooks is witnessing intense price reductions initiated by both retailers and brand vendors, a trend that is anticipated to persist until the end of this year, according to industry sources.
The notebook supply chain is currently experiencing a lack of succession, as evidenced by all factories indicating that inventory clearance has reached its conclusion, the sources indicated. However, market demand has not yet fully recovered, resulting in heightened price competition. This competition extends beyond the consumer market to include the bidding market, the sources said.
Diverse brand factories disregard cost considerations in their efforts to increase production, thereby impeding market improvement prospects, the sources noted.
Besides, key components from the previous generation or two generations are still available, such as CPUs, as the overall market consumption momentum is poor, the sources said.
In addition, despite the approaching back-to-school season, retailers in the US are pessimistic about demand, according to the sources. Foot Locker, for example, has revised its financial forecast twice, with inflation being the most significant factor.
In response to unfavorable market conditions, notebook manufacturers are compelled to reduce prices, the sources said. Companies such as HP and Dell have already warned of intensified price competition in the second half of this year.
Despite a better second half than the first, most notebook ODMs anticipate double-digit shipment declines in 2023.
Quanta Computer and Compal Electronics expect to post shipment drops of 20% and 15–20%, respectively, on year in 2023, while Wistron anticipates a more modest decline of 5–10%. Inventec predicts that this year's annual decrease in shipments will be in the single digits. The combined shipments of the four ODMs accounted for more than 60% of all notebooks shipped worldwide.
Article translated by Jessie Shen
