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PC market growth affected by ongoing supply issues

Why is this important: Product adoption rates across several industries were increased during the lockdown. The PC market was a category that has grown exponentially due to the pandemic, but sales dynamics are now affected by supply chain issues.

Global PC shipments, which include desktops, laptops and workstations, reached 86.7 million units in the third quarter of 2021, according to an IDC report. This represents an increase of 3.9% from 2020, as well as the sixth consecutive quarter that the PC market has grown. It’s a different outlook for shipments to America, however.

“Bottlenecked supply chains and continued logistical challenges have driven the US PC market into its first quarter of annual decline in shipments since the start of the pandemic,” said Neha Mahajan, senior research analyst at IDC.

“After a year of accelerated purchasing driven by the shift to work and distance learning, there has also been a comparative slowdown in PC spending and that has caused the US PC market to slow down somewhat today. Yet supply clearly remains below demand in key segments with inventory still below normal levels, ”added Mahajan.

Dell Technologies was one of the PC makers that was virtually unaffected compared to its competitors, growing 26.6% in the third quarter, shipping 15.18 million units. Apple grew 9.9% with the delivery of 7.645 million Macs.

Not doing as well as its competitors, HP was down 5.8%, while Lenovo’s shipments were up 3.1%. Taiwanese computer hardware companies Asus and Acer rose 3.6% and 1.4% respectively.

“The PC industry continues to be hampered by supply and logistics issues and unfortunately these issues have not seen much improvement in recent months,” said Jitesh Ubrani, research director at IDC. “Given the current circumstances, we are seeing some suppliers re-prioritizing shipments between various markets, allowing emerging markets to maintain their growth momentum while some mature markets begin to slow down. “

The lockdowns that followed due to the pandemic resulted in 2020 PC shipments reaching growth levels not seen in a decade earlier in 2010. However, the semiconductor shortage has had an impact on component prices. , inevitably decreasing the sales of the computer industry.

Prices for motherboards, for example, could increase due to the reduced supply of copper. The excessive demand for GPUs and processors has also led chipmakers to raise prices, which we have already seen with soaring graphics card costs.

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