Will notebook demand slacken in second half of 2010?

Will notebook demand slacken in second half of 2010?

Summary: With the economic recovery appearing to slow down in the past couple of months, there's concern that consumer spending will fall off before it's even had much of a chance to build back up. That may already be impacting the laptop market.

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With the economic recovery appearing to slow down in the past couple of months, there's concern that consumer spending will fall off before it's even had much of a chance to build back up. That may already be impacting the laptop market.

As reported by Digitimes, the inventory level for notebooks in Europe and North America is higher than normal, a possible indication that demand is slowing. Such inventory usually totals 3 to 4 weeks of supply, but current inventory has grown to 5 to 6 weeks, according to sources in the component industry. Perhaps as a result of bulging inventories, component orders from laptop manufacturers were down last month.

Given the role tech spending has played in the mild recovery that's occurred thus far in 2010, weakening demand for laptops could be a disappointing sign of an economy slowing down again. Back-to-school season will move many units, as always, but what happens after that for notebook sales in the remainder of the year could tell us a bit about the health of the recovery. Will expanded inventories eventually give rise to slashed prices, or will demand improve to bring those inventory levels back to a more typical amount?

Topics: Hardware, Laptops, Mobility

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4 comments
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  • One would think that economic problems would

    increase the demand for notebooks? After all they cost less and some argue all the time that less is more.

    Pagan jim
    James Quinn
    • I don't understand your response, Jim ....

      @James Quinn - 'they cost less' than what? Desktop units? Maybe Apple, but not PC. A high end notebook PC starts at $600-$700 dollars, and goes up from there. I can get a desktop box with MUCH better specs for the same money, and be upper high end.

      If you are referring to the cheaply built $400 notebooks, I think I can still get a much better desktop system for the same price at Wally World or TigerDirect(CompUSA). You can even buy a 22" HD monitor for $150 now if you look around.

      Not ragging on you, just wasn't sure what you meant.
      babyboomer57
    • RE: Will notebook demand slacken in second half of 2010?

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  • Inventory Levels

    "the inventory level for notebooks in Europe and North America ... has grown to 5 to 6 weeks, according to sources in the component industry."

    Has anyone looked at automobile new-car inventories lately? How about major-appliances like refrigerators, washing machines, etc?

    News flash: Inventories of consumer goods are up, all over the world. To paraphrase Chicken Little, that doesn't mean "the sky is falling"
    oldbaritone