Taiwan-based supply chain makers originally expected global PC demand to significantly rebound in the third quarter of 2016, but they will be disappointed as retail channels appear to be conservative about taking shipments due to worries about high inventory levels and large fluctuations in foreign exchange rates, according to industry sources.

With smart mobile devices seeing quick growth and are able to replicate many PC functions, PC shipments have been dropping for four consecutive years, while Microsoft and Intel's new platforms have not been able to boost demand.

In the first half of 2016, most ODMs relied mainly on orders for servers, smartphones and network products to fill their gap from PC shipments. They originally expected their shipments in the third quarter to grow over 20% from the second, but feedback from retail channels may say otherwise.

Although some vendors believe 2-in-1 devices and gaming notebooks will help slow down the PC market's decline, the sources are pessimistic since the two product segments together can only contribute around 10 million unit shipments a year, far lower than the decline of the PC market.