Global PC Shipment Dropped 12.3% in Q1 of 2020 Due to Supply Disruption Caused by COVID-19

The worldwide PC shipment declined 12.3% in the first quarter of 2020 due to the disruption of the supply chain caused by the coronavirus pandemic.

The decline was the first drop after three consecutive quarters of growth in PC shipment across the world. According to the Gartner report, a total of about 51.6 million units of PC was shipped in the first 3 months of 2020, representing a 12% decrease in the amount shipped during the same time in 2019.

Decreasing Supply and Increasing Demand

Mikako Kitagawa, research director at Gartner attributed the decline to the coronavirus outbreak which disrupted both the supply and demand of PCs.

“Following the first lockdown in China in late January, there was lower PC production volume in February that turned into logistics challenges.

Mikako Kitagawa, research director at Gartner.

He further explained that virus-related lockdown caused sudden pockets of PC demand for remote workers and online classrooms that PC manufacturers could not keep up with.

China which was the ground zero for the coronavirus outbreak is the hub for the worlds largest PC makers. The factory lockdown forced by the virus during the quarter led to supply shortages for the major PC manufacturers.

Global PC Market Recorded its Sharpest Decline Since 2013

About 16.8 million PC shipped to Europe, the Middle East and Africa

PC makers shipped 16.8 million units of laptops, desktops and workstations to Europe, the Middle East and Africa (EMEA) in the first quarter of 2020.

However, the end of the quarter saw a dramatic drop in both due to intense virus-related lockdown across most countries in the region. The total number of PC shipments in the region declined 7% year over year.

Reduction in PC spending

Following the growing economic uncertainty surrounding the pandemic, Gartner expects a reduction in PC spending. The research firm also inferred that companies will shift their budget away from PC’s due to the Windows 10 upgrade reaching its peak.

Businesses and customers alike are now expected to hold onto their PC for a longer period of time to preserve cash.

Lenovo, HP and Dell retain top spot

Despite the impact of COVID-19 on supply, Lenovo, HP and Dell still retain their top spot on the PC vendors’ market. Lenovo remained No. 1 with about 24% of the market. HP followed with a share of about 22% while Dell held third place with a 20% share.

Together, the three PC giants accounted for about 65.6% of PC shipments in the first quarter of 2020, up from about 60% in the first quarter of 2019.

In summary, the Gartner report shows that PC shipment experienced a significant decline due to the pandemic. However, with China already lifting its lockdown, there is a slight hope of having better numbers in the next quarter.