- The traditional peak season for desktop PCs proved disappointing in the third quarter 2004. July and August posted no significant gains, and shipments of back-to-school orders failed to pick up until around the end of August through mid-September. However, on the whole, the global market for desktop PCs experienced a slight warming trend and orders from brand-name vendors to Taiwanese PC makers rose considerably. As a result, Taiwanese desktop PC shipment volume reached 8.8 million units in the third quarter, representing 13.8% year-on-year growth and 9.3% sequential growth.
Brand-name vendors continued to push orders for models adopting the new LGA 775/915 chipsets in the third quarter, while restocking among channel players also gradually increased. These factors led to the stabilization of FOB (Free-On-Board) prices for Taiwanese suppliers. Due to a greater share of shipments at the bare-bone assembly level, third quarter ASP (Average Selling Price) fell to US$267. However, strong shipment growth helped generate total shipment value of over US$2.1 billion, 9.1% year-on-year growth.
The fourth quarter forecast looks fairly bright for Taiwanese desktop PC makers, as holiday season demand is sure to bring a new wave of orders from clients in October and November. On the downside, record high oil prices are likely to dampen consumer spending, especially in Western Europe and North America, the two biggest shipment destinations for Taiwanese desktop PC makers. Western Europe is particularly vulnerable, as its economy has lagged behind other regions in recent months. Demand for PCs would no doubt suffer from prolonged oil price inflation. Factoring in such considerations, shipment volume for Taiwanese desktop PC makers is expected to grow by around 9.3% in the fourth quarter to reach roughly 9.6 million units.