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European notebook sales slowing

by on08 September 2015


Cash flow problems


European notebook retailers are finding it hard to shift products and are suffering from cash flow problems.

Apparently some have started aggressive promotions for notebooks such as buy-two-get-one-free offers, and have been asking brand vendors to extend the collection periods.

According to Digitimes, the Taiwan venders are worried that the European retailers may reduce their notebook prices further to quickly clear up their inventory. This will harm notebook brand vendors' profitability and affect overall notebook sales in the second half.

Lenovo and HP have been encouraging their retail partners to stock up since May by offering them high commissions. But Windows 10's failed to kickstart a PC replacement trend and caused the retailers to suffer from high inventory pileup.

Acer and Asustek are complaining that European retailers are selling competitors' notebooks at a much lower price range, forcing the two firms to follow suit or risk losing market shares.

Acer and Asustek take up about 30-40 per cent of Europe's notebook sales.
The only PC market seeing meaningful growth is in the US, but that only applies to US-based vendors HP, Dell and Apple.

Acer is now focusing on the enterprise and gaming markets and hoping that will sort out its consumer sector. Asustek is pushing gaming-related products for better gross margins.

Last modified on 08 September 2015
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