Mobo sales keep slipping, price war imminent
If PC demand is as high as AMD claims this quarter, then motherboard manufacturers are being left out. Goldman Sachs analyst Henry King said last month he expected motherboard shipments to drop 4.2% from September to October. According to InfoWorld, the analyst has now revised his forecast to say shipments sunk 6% and will fall even more from October to November. Overall, King believes fourth quarter mobo shipments will only see a 5% increase over the previous quarter, whereas Q3 to Q4 growth can normally go as high as 19%. King lays the blame for the low demand on Vista, saying users are reticent to upgrade before its release. However, he also says shortages of "key components," including low-end processors, have contributed to poor sales.
On the upside—for consumers, at least—low demand is likely to cause inventory to pile up, potentially resulting in a price war. King says his supply chain checks indicate that "both inventory build-up and price competition are imminent." Thanks to VR-Zone for the tip.