Hewlett-Packard (HP) and Dell have both been trying to increase their sales through releasing more low-price products recently and with Acer also taking the same approach, sources from the supply chain expect the new move to impact their profits.
The supply chain originally expected Dell to switch its focus to the enterprise market, giving up the PC industry after becoming privatized, but the US-based vendor has turned out to push PC products more aggressively.
With their original expectation of seeing the US-based vendors gradually leaving the PC market and Asia-based vendors taking over their leftovers failing to realize, upstream suppliers expect their clients to demand more quote cuts in order to sustain their low-price-product strategy.
Dell's low-price-product strategy helped the company to achieve 30% growth in its Thanksgiving sales, the sources noted.
With PC vendors becoming more strict over cost control, upstream suppliers will need to be more careful over the balance between quality and costs, the sources added. |