The worries about a slowdown in PC demand are beginning to pile up.
A bevy of analysts either downgraded or went cautious on the prospects for Intel and AMD after checks in the Asia supply chain.
- Wedbush analyst Patrick Wang said "following a round of industry checks, we come away incrementally more negative on the PC supply chain, in light of lowered 3Q forecasts for both Intel and AMD as well as an expectation for softer DRAM pricing and questionable demand."
- Analysts said that inventories are rising and visibility into demand is hazy at best.
- Notebook builds were tepid in July and distributors are cutting inventory levels.
- Back-to-school demand just isn't there. Barclays Capital analyst Tim Luke said "while still early in back to school cycle, broader PC trends for 3Q have continued to remain subdued & seasonal sales
- guidance may prove bold."
- Meanwhile, Baird downgraded Intel based on weak PC demand. J.P. Morgan noted that PC orders are falling off a cliff.
What's the culprit? Analysts weren't so sure. A few noted that Apple's iPad is stealing sales from netbooks and low-end notebooks. Others just cite weak demand. Simply put, there appears to be a correction in the PC market underway despite upbeat what Intel and AMD are saying.