PC Demand Falling Stock Still An Issue, Is A Dry Spell Looming?
As Australian retailers struggle to get stock of new PC’s manufacturers of component are claiming that global demand is starting to slow down
An executive at Taiwanese memory chip maker Micron Technology, who are among one of the biggest manufacturers in the world, said at a recent investor conference that demand for consumer PCs is slowing and that some of its customers have more chips lying around.
A day later, Morgan Stanley downgraded several chip stocks in a note titled “Winter is Coming.”
The analysts said PC inventory is rising and that the smartphone market is likely to experience similar deterioration.
Terry Smart the CEO of JB Hi Fi told ChannelNews that stock levels are still an issue and that he anticipates that this will continue till the end of the year. He said that the big retailer was currently “cycling extremely low levels of stock” at the moment.
Global PC shipments grew by 13% in the second quarter, according to research firm IDC. That was below Evercore ISI’s expectation of 18% and a big deceleration from the 55% rise in the first quarter.
In Australia shipping is still one of the biggest issues for suppliers of PC’s and related components, also under pressure are suppliers of network gear, US Company Netgear recently delivered disappointing guidance claiming that those sales were worse-than-expected in its consumer networking category.
In Australia the brand has delivered hardly any new products during the past 18 months and management have taken to not returning calls.
Outbreaks of the delta variant and the long-term efficacy of vaccines make predictions even harder than usual claim analysts who point to the lack of gaming consoles. Some PC manufacturers are telling ChannelNews that supply issues will not go away until mid-2022 at the “earliest”.
Another issue facing retailers and suppliers is that during the early days of COVID lockdowns demand for notebooks soared but as one Harvey Norman manager pointed out Once person buys a new notebook “They don’t need another one for several years”.
This they claim could see demand fall as many households purchased new notebooks and home PCs for home schooling last year and during recent lockdowns.
The waning demand for PCs will likely last for at least several more quarters.
Memory prices are dropping precipitously on fears the chip cycle is over.
But it’s good news for anyone looking to buy a notebook printer, webcam or router claims Bloomberg.