Notebook inventory levels in the channel in North America and Europe are currently at 5-6 weeks, higher than the normal levels of 3-4 weeks, due to weakened demand, according to notebook component suppliers.

Despite that notebook vendors are optimistic about their sales performance in August and September, the sources pointed out that downstream notebook makers in fact reduced their component orders in July.

Since most IT players enjoyed unusually strong sales performance in the first half of 2010, players expect growth demand in the second half to not be as strong as in previous years.