2019 was the first year of positive growth in the PC market since 2012. But tech prognosticator International Data Corporation (IDC) slashed its 2020 forecast for PC shipments. The Framingham, MA-based market researcher believes the Cornoravirus (COVID-19) effect on global supply chains will cut PC shipments in 2020 by 9%, with total shipments reaching 374.2 million for the full year.
The big drops in shipments are expected in the first half of the year, with a decline of a little over 8 percent in Q1 and nearly 13 percent in Q2. Linn Huang, an IDC research vice president, wrote in a presser.
We have already forgone nearly a month of production given the two-week extension to the Lunar New Year break and we expect the road to recovery for China’s supply chain to be long with a slow trickle of labor back to factories in impacted provinces until May when the weather improves … Many critical components such as panels, touch sensors, and printed circuit boards come out of these impacted regions, which will cause a supply crunch heading into Q2.
IDC’s definition for PCs includes desktops, notebooks, workstations, and tablets. Before the coronavirus appeared, IDC was already expecting a difficult year for PCs. 2020 sales figures had to overcome last year’s boost from the Windows 7 replacement cycle. Despite the drop in PC shipments for 2020, IDC’s long-term forecast remains slightly positive as global shipments are forecast to grow to 377.2 million in 2024
The sales decline is driven by a lack of inventory as the Chinese government ordered Foxconn and others factories to shut down in some cases until March halting production of not just finished products, but also parts and components needed for those items. The NYT reports that slightly over half the country’s population is under various kinds of lock-down. FierceElectronics reports there are already product shortages shown up.
- The Apple (AAPL) iPad Pro tablet has limited availability at stores in the U.S., Australia, and Europe.
Some Facebook (FB) Oculus virtual reality headsets are “unavailable.”- HP‘s (HPQ) website says some Envy, Pavilion, and Slim desktop computers are out of stock.
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.