According to a recent report, Taiwanese motherboard and graphics card makers, including Asustek, Gigabyte and MSI, will see a sharp drop in shipments in the second quarter of 202 due to lower demand. Obviously, these companies are experiencing lower demand for laptops and PCs. It’s just another sign that the market for computers and laptops is not as trendy as it used to be. We have seen a huge increase in the light of home education, at least for the laptop segment. However, this is not enough to push demand to unprecedented levels. In fact, it seems to be lower than expected.
According to Digitimes, the source states that the decline was also attributed to the impact of the lockdown in China. It is recalled that the Chinese government has imposed strong measures against the recent increase in COVID-19 cases in the country. Some sectors are starting to reactivate in a controlled form. However, the impact will be felt in the coming months. Apart from China, there is also an impact due to the war between Russia and Ukraine. Influenced the supply of raw materials. Last but not least, the Global inflationary pressures are also affecting the market.
Manufacturers of motherboards and GPUs are facing declining demand
ASUS estimated at the French conference that computer operations in the second quarter will fall by 10 percent in the quarter. The data will also see a decrease of about 10% to 15% in the quarter. Reports also say that since the beginning of 2022, the purchasing power of motherboards has been declining. Initially, the market benefited from the pandemic, but also from the boom in cryptocurrency mining. However, this demand has changed significantly. As a result, affiliates have reduced their motherboard shipments in 2022.
Many companies are now feeling the effects of weaker demand. This goes from motherboard manufacturers and graphics card manufacturers to companies that sell computers or laptops. The industry is now waiting to see if new products from AMD, Intel and NVIDIA will be enough to boost demand. However, there are still growing concerns in industry circles. In fact, there is a lot of negative news on the radar. For example, there are tensions between Russia and the world, as well as tensions between Taiwan and China, which eventually lead to tensions with the United States.
It is worth noting that the computer sector has already fallen sharply in the first quarter of 2022. Therefore, this is a growing trend. There have been many reports showing this fact. Demand is definitely slowing down now that people are leaving home education and work at home.