PC brand vendors originally hoped China's PC market would help cover their dropping sales from other major regions worldwide in the third quarter, but such a hope may not come true because demand in China's tier-1 to -2 cities had a larger decline than expected, according to sources from PC players.
Brand vendors originally expected their third-quarter shipments to enjoy at least a 20% sequential growth in the third quarter, but seeing their July performances not picking up as strong as expected, they are now concerned that the growth may even have trouble reaching 10%.
Since China is seeing weakening GDP growth and is not offering any subsidies for purchasing IT products, tier-1 to -2 cities such as Shanghai, Beijing and Canton, have all seen their IT product demand drop sharply. Although China's tier-4 to -6 cities continue to enjoy strong PC demand, their sales are still unable to cover the drops from the major cities.
Weakening demand in China is also expected to impact players such as Lenovo, Asustek Computer and AMD, which rely heavily on the China market for revenues.
