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Notebook shipments in a 'healthier' state

Notebook sales are returning to a somewhat 'healthier' state, but the second half of the year, which is traditionally seen as 'peak' in notebook sales, is expected to be weaker than usual. These are the highlights of a new report by market analysts TrendForce.

Total number of notebook shipments for the first half of 2016 hit 74.18 million units, representing a four per cent decline compared to the year before, and TrendForce sees this as a return to a more healthy state.

However, September usually marks the beginning of a new cycle, when consumers upgrade and re-stock on their notebooks, as the new school year approaches. But the increase in the prices of certain components might mean higher prices and ultimately – lower sales.

“Notebook sales usually enter the peak period during the last six months of the year,” said TrendForce notebook analyst Anita Wang.

“For this year’s second half, however, branded notebook vendors will be facing shortages and price hikes for numerous key components. This will create pressure that limits their abilities to promote their products. For instance, South Korean panel makers have announced that they will be scaling back or ceasing the production of high-definition twisted nematic LCD panels (HD TN panels). These panels are used in the displays of mainstream notebook products, and their prices are now in an upswing on account of the suppliers’ plans. Additionally, prices of both DRAM and NAND Flash have gone up entering the third quarter. Rising component costs will constrain the sales momentum of notebooks, resulting in an unavoidable decline in annual notebook shipments.”

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