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Wednesday, 27 October 2010 12:12

Chinese OEMs overestimated back-to-school season

Written by Nick Farell


Too many PCs in the shops
A new report from iSuppli beancounters suggests that Chinese OEMs overestimated the back-to-school season.

The report claims that Chinese exports have fallen a few percentage points year-over-year, because cash-strapped consumers are reluctant to upgrade. This year they believed that the back-to-school season would be the beginning of the return to high sales, but apparently it wasn't.

Manufacturers are starting to suffer from slumping PC sales, particularly in the consumer market.  Sales to companies also have not picked up as quickly as predicted. iSuppli is reducing its overall semiconductor market revenue forecast by  about 3 percent.

"Among other developments, the second half has seen a significant slowdown in consumer demand for some electronic devices, including PCs," the company says the report. "Meanwhile, inventories have been building throughout the semiconductor supply chain. Together, these factors will conspire to cause a small sequential decline in semiconductor revenue in the fourth quarter," the report said.

Nick Farell

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