Semiconductor suppliers keeping large amount of inventory in the PC supply chain

IHS finds PC distributors hold the smallest levels of inventory among all players in the PC supply chain, carrying just 30 days’ worth of stockpiles in the fourth quarter, primarily consisting of completed computers. Original design manufacturers (ODMs) held the second smallest levels of inventory among all players in the PC supply chain, carrying just 32 days of inventory (DOI) of computers. ODMs account for the vast majority of mobile PCs produced worldwide every year. “ODMs and distributors are striving to keep a minimal amount of computers in stock partly because once-dominant PCs have now been upstaged in the minds of consumers by mobile devices like smartphones and tablets,” said Sharon Stiefel, analyst for semiconductor market intelligence at IHS. “Global PC shipments fell last year for the first time in 10 years, while shipments of smartphones and tablets continued to boom. Because of this, companies are attempting to minimize future risk by keeping inventories of unsold products at low levels.” Below is the data and analysis shared by IHS on inventory in the PC supply chain: The figure below presents DOI held by the various segments of the PC supply chain in the fourth quarter on average during the previous six years. The DOI measure in this figure applies to the goods and subcomponents manufactured by each industry. For example, for semiconductor suppliers, t...