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Analysts warn vendors likely to put existing stocks in to expensive models

Battery shortage to impact low-margin laptops

Analysts have warned that supplies of low-cost and low-margin laptops could be constrained following a fire at a major laptop battery supplier.

Chris Wei, an analyst with Market Intelligence Center, warned that: "To cope with the shortage, computer companies are going to assign the capacity they can get to higher-priced products in order to minimise the impact on their revenue and margins."

Asustek has already warned that it is unlike to hit its target of shipping one million Eee PCs during 2008 due to the battery shortage.

HP, which is the largest customer of LG Chemical – the company that suffered the fire – has said it will be "taking appropriate steps to manage the situation."

Source: FT

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