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PC shipments may have "fallen off a cliff" in July

updated 02:15 pm EDT, Tue August 10, 2010

Acer, HP, Lenovo ordering far fewer PCs

Computer shipments have suddenly "fallen off a cliff" in the past month, JP Morgan analyst Christopher Danely said in a new research note. Checking with Taiwan suppliers, he understood that Acer, HP and Lenovo have all cut their orders for notebooks, chips or both as of July. Other companies weren't named, but their positions in the top five PC builders points to others being affected as well.

The results led the analyst to cut his revenue and sales estimates for Intel. He didn't anticipate a significant turnaround as he saw demand slowing in China, Europe and the US, triggering oversupply of notebooks. System vendors faced with a glut of unsold stock will often temporarily stop production to give resellers a chance to clear backlogs.

Shrinking orders across multiple companies could be signs of a somewhat unexpected contraction of the overall computer business. Whether it will affect the wider market isn't as clear. Companies that focus on high-end computers, such as Apple, have continued growing computer sales at above the average industry rate, even at the height of the world economic slump when some lower-cost rivals were scaling back.

By Electronista Staff
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  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008


    Eventually, when people...

    own enough c***, they don't want any more.
    Unlike a lot of one-sided owners, I've owned a dozen PCs and at least that many or more Macs for businesses I have been in.
    I still hear about: crapware, viruses, lots of downtime, not working with peripherals, and how complicated the PCs are.

    The "main" complaint I've heard from those who switched to Macs is that it took them some time to get over their prejudices, and the fact that Macs were really a lot easier and more fun AND they wish they had started a long time ago but they believed all the "c***" the PC-ers were floating out there. It wont work forever. Go play your games boys.

    PC lovers can say what they want, justify what they like and that's fine. Go to PC websites and leave sites like this alone. No one wants you, likes you, or needs you. And that probably galls you the most. To quote you PC-ers, "Who cares?" Right, we don't care about you and your justifications.

    Keep lying to yourself... you must love it!

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999


    PC owners are following my advice

    Instead of rushing out to buy another computer just to end up with the same problem all over again, they are either going Mac or pulling out the hard drive and putting in a larger/faster drive and installing WindowsXP. It may involve a day of outage (unlike the Mac, only 30 minutes to get it going, drivers and all) and the cost of a hard drive.

  1. testudo

    Forum Regular

    Joined: Aug 2001


    Re: Eventually

    Please keep in mind Apple is also a PC maker, and there's nothing here saying "Well, they're all jumping to Macs!" it could be "Well, people are buying less, regardless whether it's c*** or Macs".

  1. lkrupp

    Junior Member

    Joined: May 2001



    "Computer shipments have suddenly "fallen off a cliff" in the past month..."

    Maybe they tripped on an iPad?

  1. henjin

    Fresh-Faced Recruit

    Joined: May 2007


    Windows 7 installed on many Macs

    Apple makes great products. Though there are major and glaring problems with OSX.

    My MacPro early 2008 and 2009 both have Windows 7 ultimate. I have to use Windows as Apple and nVidia and Adobe for CS5 do not play nice together and for CS5 I need hardware acceleration that is not forthcoming with the new ATI GPU boards. I need nVidia CUDA but these cards act up with the OSX and though Windows 7 has a few issues I do get hardware acceleration. ... AE CS5 is a slug on OSX but in Windows I get fast and speedy work done

    I buy Apple to run Windows because they have the best hardware. My macBook Pro 15.4" 2.66ghz i7 will also have a copy of Windows 7.

    I would have bought a Dell but please look at the quality. Apple notebooks are solid and I still use my MacBook Pro 2006. macPro towers are a classic design which means my small business looks good even when it is old tech.

    the reason why Apple wins is because you get museum quality design with the ability to run virtually any operating system. Windows 7 Ultimate + MacPro= speed and beauty =wonderful.

  1. vasic

    Fresh-Faced Recruit

    Joined: May 2005


    Comprehensive reading


    You may want to re-read the article. It says that "Companies that focus on high-end computers, such as Apple, have continued growing computer sales at above the average industry rate, even at the height of the world economic slump when some lower-cost rivals were scaling back." (last sentence of the text above).

    Other than possibly Sony, with their VAIO line, there are NO other companies that focus on high-end computers (except Apple, of course). It doesn't say whether VAIO has also been growing sales (I doubt it), but it is clear that people are buying less c*** and more good stuff.

  1. vasic

    Fresh-Faced Recruit

    Joined: May 2005


    The iPad effect

    And it is almost certain that the single most significant cause for the 'off-the-cliff' drop in sales is the iPad, which has likely decimated the only heretofore growing segment of the non-Apple market -- the netbook market.

  1. dogzilla

    Grizzled Veteran

    Joined: Sep 1999


    comment title

    How have you people managed to turn this into a Mac vs. Windows debate? This has nothing to do with that. This is a market segmentation issue - high-end vs. low-end. You can probably see the exact same thing happening in cars, televisions and vacations.

  1. joecab

    Fresh-Faced Recruit

    Joined: Apr 2004


    go go Gadget iPad!

    That's my explanation and I'm sticking with it :P

  1. Foe Hammer

    Fresh-Faced Recruit

    Joined: Feb 2005


    iPad VooDoo

    Eeeks! joecab just said "iPad" ... Man, don't you realize that everytime someone says "iPad" that a virtual needle (iPad) is stuck in a random part (iPad) of a virtual Steve Ballmer (iPad) doll causing the real (iPad) Steve Ballmer (iPad) to feel a sharp pain (iPad) in the corresponding part of his body? (iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad iPad)

    Just for giggles, I ran Microsoft's little "Mac or PC?" webpage through babelfish. The translation came back as "Please! PLEASE!! Someone PLEASE buy our garbage!!! And HURRY!!!!"

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