Amid global chip shortage, the PC market grew higher than expected
Q1 2021 says the global PC market showed an unexpected turn of events during chip shortage. 83.6 million shipments were conducted within the period, which raised 13.3 per cent market cap. Lenovo, amongst many, is in the front line of success this second quarter. International Data Corporation (IDC) shared logistics as there were many issues from last year and now, alongside component shortage, the PC market thrived.
Traditional PC includes notebooks, workstations and desktops. In the first quarter (1Q21), there was a 55.2 per cent growth. It may have been fueled by the pandemic as more people moved to their home work station. And as a consequence, if they dint have a powerful enough rig that gets the job done, they needed the components for upgrading. We hoped laptop sell would be the most beneficial for business but we stats proved otherwise. The analyst found “mixed demand” for the products.
When the pandemic hit, we were unsure of the supply and if manufacture would continue to produce like they used to. In the early 2020 quarter (1Q20) unstable shipments began. But latest stats said there was an 8 per cent rise from last year’s business quarter. According to IDC’s research manager Jitesh Ubrani, an increase in average selling prices contributed towards component shortage and struggles.
Lenovo is the top company with 59.1 per cent growth with a 23.7 per cent market share increase. HP Inc. is just behind with 19,237 shipments in the first quarter. And there is a 64.1 per cent sales increase and a 21.7 per cent increase in market share. Coming at number three is Dell Technologies, which made 12,946 shipments and saw 23.4 per cent growth since 2020 Q1. Apple is number four in this group with over 6,692 1Q21 shipments and 111.5 per cent growth from 1Q21/1Q20. Acer is in the fifth position and other companies made almost 19,000 shipments and that’s a 50.3 per cent increase from last year. In total 1Q21 made 83,981 shipments and we believe it’s still growing. But that will be calculated in the mid-quarter. As we a see, the pandemic boosted the product sales without question as the numbers are in millions.
Analyst firms also realised sales in the PC sector outgrown portable computer space. Top vendors saw substantial growth in shipments and smaller businesses alongside. IDC is the market leader in providing advisory services for events, information technology, etc. Even consumer tech market and telecommunication data are fed by the organisation. Which makes them highly capable of providing statics around the market that we see today.
Gartner alongside IDC said PC shipments grew 4.6 per cent in 2021s second quarter. Things may have slowed down because of the ongoing semiconductor shortage. Gartner reported 71.6 million units sold in 2Q21. Which is a 4.6 per cent increase from 2Q20. The growth may continue as more people is adjusting to remote work and classes held online.
Research director at Garner Mikako Kitagawa said, “The global semiconductor shortage and subsequent component supply constraints have extended lead time for some enterprises.” With the sudden push of windows 11, Microsoft’s and other OEM partners may already have a vision of the growth. And there is no stopping sign when this will end. It is better not to end, we guess. While China banned crypto mining and firms are now closing, second-hand mining GPUs are being sold at cheap by the same scalpers or destroyed in plenty. This may lead to the supply issue of graphics cards even though chip shortages.
Windows minimum update requirements seem to bother older configurations which will push offices and PCs a forced upgrade. This may raise hardware selling margin as Windows is the most used OS in the world. Another reason goes hand to hand with this, as old hardware may become prone to security issues if OS manufacture stops pushing patches to them. This forces companies to adopt the latest hardware for continuous and secure workflow.
Apple’s new M1 computers are going to trickle the market and as per comparison PC sales may go strong next year too.