The report pointed out that Windows 10 will be launched at the end of the month, and according to past experience, in July brand-name companies substantially increase their orders. However, OEM manufacturers claim that there has been a shortage of orders and brand-name representatives lack confidence in Windows 10.

Analysts believe that the reason for brand-name companies’ lack of confidence stems from two sources. The first is that demand in the PC market is continuing to decline. The second reason is that Microsoft is offering a free upgrade policy for Windows 10, which is also influencing consumers’ incentives to buy new computers. It will also have an unfavorable impact on the traditional high season for PC shipments in the second half of the year.

In addition, Intel predicted in their July 15 reported earnings that corporate performance will be the main indicator of PC market conditions.

Analysts also pointed out that the PC industry is a linked chain, and as soon as upstream chip shipments are lower than expected, this will signify that midstream demand for motherboards is also weak and that downstream brand-name companies and OEMs will face a predicament of declining shipments.

(TR/Phil Sweeney)