Vista delay slows motherboard sales

Microsoft’s Vista upgrade coupon scheme has arrived none too soon, it seems. A Goldman Sachs analyst quoted by the Taipei Times expects motherboard shipments to drop 4.2% from September to October, despite previously forecasting a 3.1% increase in shipments over the same time period. The drop is attributed largely to lowered demand caused by consumers and businesses holding off upgrades until the release of Windows Vista next January. According to the analyst, the decline in shipments occurred “earlier and more significantly than we expected,” and motherboard manufacturers may be left with oversupply as a result. The oversupply could trigger a price war as motherboard makers struggle to clear stock. Overall, the Gartner research group reckons Vista’s untimeliness may cut $4 billion from PC sales in 2006. Thanks to The Inquirer for the tip.

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    • albundy
    • 14 years ago

    great to be the consumer, sucks to be them.

      • Chrispy_
      • 14 years ago

      Nice tip.

      /me waits for price slump with bated credit card.

    • Shining Arcanine
    • 14 years ago

    If people are holding off their purchases, does that not mean that demand will be higher next quarter than it would have been otherwise? If the motherboard manufacturers stored their goods in their warehouses until the next quarter, they could sell them, without any change in their margins and without any surplus supply after the next quarter. I do not understand why they consider a surplus this quarter to be a problem when there will be a proportionate increase in demand next quarter.

      • ew
      • 14 years ago

      Because having a bunch of motherboards which you have already payed to have manufactured sitting in a warehouse which you must rent because your normal warehouse can’t store a three month supply of boards cost you money.

        • Buub
        • 14 years ago

        Not to mention that computer components don’t “age” well. The longer they sit around, the more risk they have of becoming obsolete. And even if not obsolete, their value declines quickly because advancement never stops.

        • stmok
        • 14 years ago

        That’s pretty much spot on…
        If its sitting in a warehouse, its not making money.

        Its the same with airliners…
        If a plane is sitting on the ground, it isn’t making the airline company any money. (That’s why they have to keep them airborne as much as possible!)

        Of course, the difference between airliners and computer hardware companies is that PC bits go obsolete pretty quickly. So you have a limited period to get your product out and selling.

        #3, albundy…Yeah, that’s true. Companies have to get rid of this stock to make way for the new stuff. No doubt they’ll be desperate enough to dump them at lower prices.

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