World PC shipments grew 45 p.c year-on-year to 75.6 million within the first quarter of 2021, in accordance with a market analysis report. Lenovo retained its market management, and was adopted by HP and Dell. The expansion within the shipments of key PC distributors is forecast to proceed within the coming months. Nonetheless, the worldwide chip scarcity that has impacted the provision of key parts — within the aftermath of the COVID-19 outbreak final 12 months — is predicted to proceed to have an effect on the PC market worldwide within the second half of 2021.
Market analysis agency Counterpoint has reported the worldwide PC shipments information for the primary quarter. The agency stated sturdy demand throughout totally different classes and a low base in the identical interval final 12 months as a result of coronavirus outbreak are amongst the prime causes for the expansion.
Lenovo led the market once more within the first quarter of 2021 with a 24 p.c share, adopted by HP at 23 p.c, Dell at 17 p.c, and Apple at 9 p.c, in accordance with Counterpoint. The report stated that the general momentum of the market was primarily pushed by the expansion in gaming notebooks and a surging demand from the work-from-home and study-from-home segments.
Nonetheless, the cargo volumes have been down 14 p.c sequentially from the fourth quarter of 2020 attributable to seasonality, the report stated.
The rising demand for computer systems (particularly notebooks) is anticipated to proceed within the second quarter. Counterpoint additionally stated that the highest six distributors will proceed to dominate the market with a mixed share of over 85 p.c.
Predicting future traits, Counterpoint stated that premium fashions with larger common promoting costs may dominate the market by way of massive promotions. Nonetheless, that development might negatively affect the rising shipments of Chromebooks to some extent.
Counterpoint stated the market will see a 16.3 p.c year-on-year development in 2021, with shipments reaching 333 million.
Nonetheless, regardless of the projected development, the continued scarcity of chips is prone to affect the market. The agency stated that it discovered a 20-30 p.c hole between orders (end-demand) and precise shipments of key parts together with energy administration built-in circuit (IC), show driver IC, and CPUs.
Energy administration built-in circuits (PMICs) and show driver built-in circuits (DDIC) are stated to have confronted the largest gaps in demand and provide the PC phase, with their lead time (the overall time from the begin to the top of their manufacturing) being nearly twice as a lot as a result of coronavirus pandemic.
Counterpoint observed that whereas PC CPUs’ provide began to enhance within the late first half, some distributors confronted difficulties in assembly the demand for parts similar to audio codec IC and LAN chips. Wi-Fi SoC shipments have been additionally comparatively at low stock ranges.
“Since we don’t see any significant foundry capability growth in H2 2021, it’s unlikely that the lead time for key IC parts would recuperate from the present standing. Subsequently, PC manufacturers and ODMs can not totally clear up the scarcity difficulty and clear the orders backlog,” stated William Li, a semiconductor and parts analysis analyst at Counterpoint.
The demand-supply hole for parts, which began within the second half of 2020, is anticipated to proceed for some extra time. However Counterpoint stated it ought to step by step be normalised within the late first half of 2022.
In late Could, Dell and HP warned whereas saying their quarterly earnings that the chip scarcity would considerably affect their PC provides no less than till the top of the 12 months. The market noticed its highest annual development in a decade in January.