LogInAsus reportedly has $6.8 billion worth of inventory that's not going anywhere.
China Times' report revealed that PC manufacturers like Acer, Asus, and MSI are facing hard times with their inventories full of unused stock. Financial analyst Dan Nystedt highlighted that Asus especially suffers in this regard as its inventory amounts to $6.8 billion, which is a 60% increase over its inventory levels at the same time last year.
The company with the greatest inventory is Quanta, its stock is worth about $8.4 billion, which is almost a 55% increase over last year.
The report says that about half of Asus's inventory is finished products and the other half is components and ICs. Asus believes it can use arorund 80-90% of its inventory components to make next-gen products and PCs, however, some products have to be sold soon, before they are out of date.
The problem could be beneficial for users as China Times thinks companies will "aggressively push finished products to the channel through discounts and promotions." Seems like we should expect this strategy to be applied soon as NVIDIA is also planning to "adjust channel prices and inventory." However, not every company shares the approach: for example, Sony is going to increase the recommended retail price of PlayStation 5 in select countries.
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