Notebook industry headed for overcapacity

— 2:17 PM on December 30, 2002

DigiTimes is reporting that the notebook industry will hit overcapacity next year. Apparently, the capacity exists to produce more than double the number of notebooks than the market is expected to demand:

The news report quoted MIC as expecting local companies to have the capacity to produce up to 7.15 million notebooks per month in 2003, or over 80 million units for the full year. However, worldwide notebook demand next year is estimated at less than 35 million units.
Some of the overcapacity may be diverted to the production for other products, but it looks like notebook supply will far outweigh demand. A glut of notebooks in the market could lead to price slashing, which could help portability be a killer app of sorts in the coming year.
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