SAN FRANCISCOProjected sequential growth in second quarter PC builds is looking weaker than it did two weeks ago, according to a financial analyst who cited cuts to PC orders with original device manufacturers made by Taiwanese PC vendor Acer.
Craig Berger, an analyst with FBR Capital Markets, cut his forecast Wednesday (May 13) for growth in second quarter PC builds to 1 percent. Last month, Berger projected that second quarter PC builds would be up 7 percent compared to the first quarter.
Berger wrote in a report circulated Wednesday that checks with the top five notebook ODMs and top four desktop motherboard makers confirm the cuts by Acer, which have been reported by various media outlets including DigiTmes.
Last month, Reuters reported that Acer cut its forecast for 2009 netbook PC shipments to between 10 million and 12 million from an earlier forecast of 12 million to 15 million. Acer reported that its first quarter profit fell 31 percent amid weak demand.
Berger said he now believes that second quarter notebook PC builds will be up 11 percent from the first quarter, down from an earlier prediction of 14 percent growth. The analyst now projects that second quarter desktop PC shipments will be down 10 percent from the first quarter, a more severe decline than the 2 percent that he projected last month.
"These negative revisions are due to continued softening demand in Europe, slowing demand momentum for netbooks following a possible 2Q channel fill of new models, and some delayed projects on low-voltage notebook models," Berger wrote.
He said the new checks represent a change in momentum after FBR had positively revised PC build forecasts three consecutive times.