Notebook Vendors Are Lowering Their Hopes

TV sales aren't the only things dipping down, as reports also reveal the unsurprising fact that mobile personal computers are suffering as well, even causing vendors to hesitate in building up inventories.

No matter how good an original design manufacturer (ODM) is at making something, or how many of those it can churn out each month, its business evolution is, in the end, dictated by whatever orders it can secure from Brand vendors.

As it happens, this seems to be a period during which none of those brand vendors are being very eager to build up inventories.

In other words, they set lower orders with ODMs than the latter would have liked, despite what trends would usually lead to.

Basically, for the fourth quarter of 2011, which just started (it covers the October-December period), notebook makers reduced their order by 5-10%.

Apple and Lenovo are the only ones that did not take such an action, not that it actually assuaged the situation much.

During the course of Q3, most ODMs would get 20% more orders, compared to the previous three-month period.

Now, though, they only managed to scrounge up 6% more shipments in that period of time than they did in Q2.

Compal, for example, shipped 3.4 million notebooks in September, about 6.3% more than in August, while Quanta shipped 5 million in August and September (each). This was practically no growth at all.

Apple's iMac and MacBook Air product lines are the reason for the Cupertine company's decision to not reduce its orders.

Meanwhile, Lenovo is enjoying rapid business growth, taking second place as worldwide supplier from Dell.

All in all, the October-December period isn't shaping up to be in any way impressive, sales-wise, and the holiday shopping season might not do much to buoy marketing performance this time, the same way the apparent DRAM stabilization might not last enough o make a difference.