Double-booking to blame for notebook component shortages

Posted on Tuesday, March 02 2010 @ 3:35 CET by Thomas De Maesschalck

Sources at notebook makers told DigiTimes that notebook component shortages in China are not as serious as most market watchers believe. The site heard the strong demand is primarily created by notebook makers double booking or oven booking orders to maintain inventories.

If demand from notebook makers starts slowing down in the second quarter of 2010, which is expected to be the slow season for the notebook industry, upstream component makers may see their inventories build up quickly, the sources noted.

However, sources from component makers pointed out that makers will not recklessly expand their capacities only to satisfy orders and will adjust their production strategy based on market status.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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