Trade Resources Industry Views PC, Handset Suppliers Worry About Inventories

PC, Handset Suppliers Worry About Inventories

Suppliers in the PC and handset supply chains have begun to worry about piling up inventories of parts and components as current demand for PC and handset products has been falling short of market expectations, according to industry sources.

Although orders from some PC vendors have rebounded slightly, it is still difficult to say whether demand from the end-market has picked up, or the increased orders are part of PC vendors' tactics to ship as many as possible products to the sales channels, said the sources.

With regard to the handset market, while most brands are expected to release new models for 2016 starting the second quarter, demand in China and other emerging markets still remain uncertain, noted the sources.

Since the honeymoon periods for new phones have been shortened, any possible over-bookings of parts and components by vendors could lead to inventory pile-up, said the sources.

Additionally, the maturing smartphone market in China could also impede shipment momentum globally, added the sources.

Source: http://www.digitimes.com/news/a20160317PD201.html
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PC, Handset Suppliers Worry About Inventories