Notebook component shortage in China is not as serious as most market watchers believe since the strong market demand is mainly created by notebook makers double booking or over booking orders to maintain inventories, according to sources from notebook makers.
If demand from notebook makers starts slowing down in the second quarter of 2010, which is expected to be the slow season for the notebook industry, upstream component makers may see their inventories build up quickly, the sources noted.
However, sources from component makers pointed out that makers will not recklessly expand their capacities only to satisfy orders and will adjust their production strategy based on market status.
The sources also pointed out that orders from notebook brand vendors do not often see issues with double-booking and most of these orders are coming from system integrators.
Article translated by Joseph Tsai
