News Asus Warns PC Shipments Will Drop 10% in Q2

[Admin]

It also expects motherboard and graphics card shipments to drop by 10-15% in the current quarter. Crypto crash, Ukraine war, China lockdowns, and inflation are all blamed.

Asus Warns PC Shipments Will Drop 10% in Q2 : Read more

 

[InvalidError]

Covid WFH forced many people and companies to do out-of-cycle or otherwise unneeded upgrades. People are no longer holed up from lock-downs either so entertainment PC sales would be down too. Then you have inflation steering many people's spending from luxury to essential goods. It shouldn't surprise anyone that PC/laptop sales are doing some catch-up on their pre-pandemic yearly sales declines.

 

[Phaaze88]

It's like some of these companies don't know that boosts are temporary...

 

[watzupken]

I don’t think this comes as a surprise really. COVID pretty much forced people globally to snap up desktops, laptops, tablets, printers, web cams, etc, at an unprecedented rate due to the abrupt fully work/ study from home plans. By now, each household would easily have more computers/ electronic devices than what they normally need since most are back in office/ school physically. So instead of a sustained demand for electronics, the resale market is flooded with electronic devices now. That’s why I feel while supply may still be “tight“, weakening demand will put downward pressure on prices of electronics. Any company selling electronics definitely made a windfall over the last 2 years. But clearly, we are slowly but surely moving back to the norm where they should not expect to make the same revenue/ profit. 10 to 15% decline is really a very conservative number when normal demand is likely a few times lower.

 

[tek-check]

Markets are saturated anyway. Who would want to buy a laptop every year or every two years anyway?
In the last two years, entire world has been upgrading the gear. This "news" makes me think that vendors would like to create a climate of artificial scarcity to encourage people to buy. yet again.

 

[InvalidError]

In the last two years, entire world has been upgrading the gear. This "news" makes me think that vendors would like to create a climate of artificial scarcity to encourage people to buy. yet again.

After almost three years of component shortages, you'd think the industry would welcome a lull in demand to let the supply chains and pricing settle down. Instead, they're panicking at the idea that a demand crash may force them to align prices closer to actual costs to sustain sales.

 

[bolweval]

Markets are saturated anyway. Who would want to buy a laptop every year or every two years anyway?
In the last two years, entire world has been upgrading the gear. This "news" makes me think that vendors would like to create a climate of artificial scarcity to encourage people to buy. yet again.

Agreed, I'm still using a 7 year old Dell laptop and still have no reason to upgrade it.