Weak European Economy Leads to Reduced Notebook Orders

Even though the worst of the economic recession is believed to have passed, that is not true for some parts of the world, most notable of which is none other than Europe.

The economic downturn was worst during 2008 and 2009, as far as most people know, but it is still going strong in certain regions.

Though some countries are getting back on their feet, US included, some are only now taking their turn, so to speak. Practically every time we write of some financial report or survey, we end up having to mention how much of an impact the European economy has had.

Pretty much all countries on the old continent are struggling to some extent, and this hasn't left the IT market unscathed.

This time is no different, although at least we aren't summarizing an official financial study. Instead, we are relaying what was revealed in a Digitimes report.

According to unnamed sources from the upstream supply chain, Taiwan-based notebook ODMs (original device manufacturers) have been reducing their component orders.

PC demand in Europe is quite weak even now, not necessarily because of troubled finances but due to the lingering hesitation experienced by channel retailers.

After such a long time of underwhelming shipment levels, vendors just aren't optimistic enough to think demand will suddenly spike.

In turn, ODMs have had to slow down in their inventory buildup and device production, although official data does not support this claim.

None of the Taiwan-based notebook ODMs has adjusted their shipment forecast for the next month. They actually expect their overall shipments to keep rising. What's more, the general belief appears to be that even if June doesn't make their hopes come true, the second half of 2012 will. The scheduled arrival of Windows 8 is, naturally, the motive behind this certainty.