iSuppli estimates there were nearly 4 million PCs in finished goods inventory worldwide at the end of the first quarter of 2009, a decline of over 18% sequentially. Clearly, PC OEMs took action to reduce inventories heading into the demand-constrained second quarter of 2009.
iSuppli believes that there will be a significant inventory rebound as OEMs drive H2 2009 demand with falling ASPs, retail incentives, and the growth of netbook sales. Finished goods inventories are currently forecasted to increase 10%, but remain off by 20% year-on-year. PC OEMs bottomed in Q1 2009 and outlook remains tentative. The OEMs are building in anticipation of pent up H2 2009 demand, a dangerous game that could spell disaster should end demand not materialize as expected.
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