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Lenovo gves blessing to notebook price war

by on04 October 2016


Increases stockpiles for Christmas 

Lenovo seems to expect there will be a big sale of notebooks this Christmas.

The Dark Satanic Rumour Mill has manufactured a hell on earth yarn that the outfit has increased its inventory level to five months recently to prepare for its promotions for the year end holidays.

This means that not only does Lenovo expect there to be higher general sales in the next few months, but also there will be some serious price cutting as vendors fight over the slightly larger pie.

All this will be good for consumers, but less hot for the vendors, which might see their bottom lines reduced even as the PC industry appears to pick up.

Other notebook vendors are also increasing their inventory to prepare for year-end holidays but the five-month figure that Lenovo has prepared is rather high. It takes 1.5 to two months to ship goods so having five months of inventory indicate that Lenovo will have at least three months of inventory in the channel waiting to be sold.

Lenovo tried this in 2015 when the company reportedly was offering buy-one-get-one-free promotions in the channel to increase its notebook demand.

HP is expected to have surpassed Lenovo to become the largest vendor worldwide in the third quarter, but Lenovo might be wanting to get its crown back with this particular drive.

HP's own notebook sales might see some shortages as a big chunk are tied up in the bankruptcy of Korea-based container carrier Hanjin Shipping.

Last modified on 04 October 2016
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