Global Notebook Shipments Down 4% and Expected to Fall More: Report
A new TrendForce study says it expects notebook shipments to fall even more in the second half of 2016, due to current high inventories.Shipments of notebook computers around the world fell 4 percent to 74.18 million units in the first half of 2016, compared to the same period a year ago, and additional declines are expected in the second half of the year, according to a new report from research firm TrendForce. The first-half drop in shipments and the anticipated further second-half shipment reductions come as the notebook market approaches its back-to-school sales season and end-of-year holiday sales opportunities. Part of the reason for the expected drop in shipments in the second half of the year is that inventories are high now in preparation for back-to-school sales, according to the report. "Notebook sales usually enter the peak period during the last six months of the year," Anita Wang, a notebook analyst for TrendForce, said in a statement. "For this year's second half, however, branded notebook vendors will be facing shortages and price hikes for numerous key components. This will create pressure that limits their abilities to promote their products." One example of this scenario, she said, is that "South Korean panel makers have announced that they will be scaling back or ceasing the production of high-definition twisted nematic LCD panels [HD TN panels]," she said. "These panels are used in the displays of mainstream notebook products, and their prices are now in an upswing on account of the suppliers’ plans. Additionally, prices of both DRAM and NAND flash have gone up entering the third quarter. Rising component costs will constrain the sales momentum of notebooks, resulting in an unavoidable decline in annual notebook shipments."
Due to these factors, TrendForce's projected annual second-half shipment estimates take into account the fact that "notebook shipments during the traditional peak sales season may be weaker than expected," according to the report.