Laptop prices likely to drop as OEMs and ODMs reportedly look to stimulate falling demand with generous discounts

Sources from the Taiwanese notebook supply chain close to DigiTimes report imminent laptop price slashes in order to stimulate demand. 2020 and 2021 were excellent years for the portable computer industry as the pandemic and the new remote work ethic led to increased demand for notebooks. 2022, on the other hand, is not looking particularly good in this regard, since worldwide focus is shifting away from the pandemic to more pressing matters like the rising inflation caused by the Russia-Ukraine war and port congestion. Notebook sales are thus expected to decline throughout 2022, so laptop ODMs and OEMs are likely to incentivize demand with generous price cuts.

The shortage problems are almost gone, at least for the laptop industry, with the report noting that only power management ICs (PMICs) and MOSFETs are now the only components with low stocks, but this should be fixed by 2023. As a result of a flat demand for notebooks, supply chain quotes for laptop components should drop further, and the first parts to see declining prices include notebook displays and DDR memories.

ODMs like Compal and Clevo are optimistic about the shipment projections for Q2 this year, even though growth momentum is dropping for some segments. Compal, for instance, reports lower demands for consumer and education notebooks, while business and gaming models do not seem to be affected. Clevo will instead focus on its niche segments rather than pushing for increased shipments, as the company only has order visibility for the next two months.

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