– Deutsche Bank
remains optimistic that PC unit growth will accelerate through year-end.
The firm believes current expectations of 10 to 11% unit growth will trend up toward the company’s previous estimate of 15% year-over-year growth, the result of continued strength in emerging markets, consumer and the beginning stages of a corporate PC upgrade cycle in the second half of the year.
Inventory correction has been largely cleared and manufacturing trends are firming, says DB. A relatively benign PC pricing environment continues, the company adds.
Evidence of an accelerating PC demand trend is visible among Taiwanese manufacturers; Quanta Computer
increased its forecast to 30 to 50% year-over-year growth up from 20 million units shipped last year.
More broadly, Asian PC demand is tracking to 10 to 12% year-over-year unit growth in the June quarter, with early indications suggesting 10 to 15% in the September quarter.
Overall, demand appears normal, the firm said, with a slow and steady ramp expected into the second half of the year.
Motherboard units accelerated in May to up 17% year-over-year. Notebook data have also remained strong, with Taiwan notebook units up 63% year-over-year in May, accelerating from 37% growth in April. Notebooks are expected to be up 41% in the second half of the year.
LCD pricing has strengthened recently, DB said. Overall LCD pricing is up 5% in May versus the first-quarter average.
Notebook and desktop pricing was relatively stable this quarter, with average ASPs for notebooks down 1%.