The US PC market fell by double digits in the fourth quarter of 2021, with shipments down 24.2% year-on-year.
According to Gartner’s preliminary results, worldwide PC shipments in the fourth quarter of 2021 totaled 88.4 million units, down 5% from the fourth quarter of 2020.
According to the just-announced Gartner Research, this decline was the first year-over-year decline following six consecutive quarters of growth. Report on PC sales..
Overall, PC shipments in 2021 continued to be positive, rising 9.9% from 2020 to reach 339.8 million units.
According to Gartner, the drop in sales in the second half of 2021 is due to transportation problems and a shortage of semiconductors, and the same problems are affecting other markets as well. The lead time for some PCs has been extended to four months.
“Without the shipping turmoil in early 2020, growth could have been low this quarter,” said Mikako Kitagawa, an analyst at Gartner Research. “This could lead to lower shipments, but it’s reasonable to conclude that PC demand remains strong even after the stay-at-home order is relaxed. Vendors and suppliers will continue to overstock. You will balance the need to meet potential demands without creating. “
In the first quarter of 2021, Chromebook shipments increased by three digits compared to the previous year. This increase is primarily due to investments in North American educational institutions. Including Chromebooks, the global PC market as a whole grew 47% year-over-year in the first quarter.
Prior to the pandemic, the PC market was experiencing a steady decline, but began in 2012 and was interrupted intermittently by slow growth. In 2019, PC sales showed their first weak growth, up only 1.4% year-on-year. This was driven by a Windows 10 update and the end of support for Windows 7.
When the pandemic broke out in 2020, it revived the PC industry. That year, PC sales increased 11%. “The pandemic was a game changer for the PC industry,” Kitagawa said.
The COVID-19 pandemic has transformed PC sales in three main ways.
- Work from home: Many companies have closed their offices, hiring telecommuting and forcing employees to provide laptops.
- Online Education: Many schools had to provide students with laptops for online classes.
- Home Entertainment and Communication: Consumers were stuck at home due to the peak blockade of the pandemic. The PC has become an important tool for home entertainment and communication with friends and family.
Gartner expects PC demand to slow for at least the next two years, but annual shipments are not expected to drop to pre-pandemic levels.
“We are confident that demand for PCs in the enterprise market will continue to be strong throughout the year, but supply chain issues will result in longer lead times and slower shipments,” said Kitagawa. “Currently, the lead time is quite long. PCs ordered this quarter can only be shipped in the next quarter.”
In addition to supply chain issues, Chromebook sales began to slump last year, Kitagawa explained.
According to Gartner, sluggish shipments were the main cause, as demand from educational institutions continued to slow. In addition, during the holiday season, consumer demand was modest, resulting in lower PC sales than in 2020.
The top three vendors in the global PC market remained unchanged from the previous quarter, with Lenovo remaining at the top of shipments. All of the top six vendors achieved double-digit growth in all of 2021 and all but Dell gained market share compared to 2020.
According to Gartner, the decline in the last two quarters was highlighted by Lenovo’s inability to supply PCs to corporate customers due to supply chain issues.
In the US market, Dell secured the top spot with a 28.5% market share on a shipping basis. HP followed at 25.9%.
Lenovo’s worldwide PC shipments fell by nearly 12% in the fourth quarter of 2021. This is the company’s first year-over-year decline since the first quarter of 2020. HP shipments fell 4.2% in the previous quarter. The slowdown in Lenovo was also due to the slowdown in demand for Chromebooks and branding issues in China.
Decreased demand for Chromebooks and delays in shipping also contributed to HP’s year-on-year decline. However, the decline was eased by the strong growth of the Asia-Pacific market, Gartner said.
“HP’s supply chain has improved this quarter from the very bad conditions of the last few quarters,” says Kitagawa.
Conversely, Dell gained market share during this period after recording growth for the fifth consecutive quarter. Driven by strong performance in Latin America, EMEA and the Asia-Pacific region, the company’s first-ever shipments exceeded 17 million units.
Dell wasn’t too distressed because it wasn’t a big player in the market due to sluggish demand for Chromebooks. Also, the softening of the consumer market did not have a significant impact on Dell due to its small presence. According to Kitagawa, Dell is only targeting selected segments such as games and premium segments.
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Supply chain, semiconductor issues slum PC shipments
Source link Supply chain, semiconductor issues slum PC shipments