Shipment term

Global PC revenue continues to grow, but shipments fall for the first time in two years

The personal computer (PC) market, which has seen significant growth since the start of the pandemic as remote working has become the norm, has for the first time after seven quarters seen shipments fall by around 3%.

According to a quarterly PC analytics report from analyst firm Canalys, the PC market has started 2022 well, with overall revenue growing more than 15%, despite the first drop in year-on-year shipments. the other since the first quarter of 2020.

Latest data from Canalys shows global shipments of desktops and laptops fell 3% annually to 80.1 million units amid major geopolitical unrest and slowing consumer demand . Revenues, however, hit $70 billion as prices continued to rise in a tight supply market and consumer appetite for more expensive PCs grew.

Notebook computer shipments fell 6% year-on-year to 63.2 million units, while the number of desktop computers increased 13% to 16.8 million units. Although shipments have been hampered by external shocks, revenue prospects and confidence in long-term opportunities remain elevated due to strong fundamentals around PC ownership and use. “Vendors and their shareholders have reason to celebrate as the PC industry’s revenue growth streak continues,” said Canalys principal analyst Rushabh Doshi.

People are using their PCs more often, for longer, and for more tasks than ever before, the company said. The past two years have significantly expanded the installed base, with more than 150 million laptops and desktops added between 2019 and 2021. Even though customers are being forced to delay their purchases due to rising prices at In the short term, a large wave of device refreshes is inevitable, especially given that more than 50% of active devices are over four years old, Doshi added.

Meanwhile, commercial demand will remain strong this year even as consumer and education purchases weaken. The resumption of workplace activity to near pre-pandemic levels, coupled with hybrid and remote workers requiring more specific PCs to maximize productivity, means that business IT spending will remain high in 2022, Canalys noted in its study.

Lenovo leads the way

Lenovo remained the top vendor in the PC market in Q1 2022 with shipments of 18.2 million units, down 10% year-on-year. HP retained second place but suffered the biggest decline of the five major vendors, with shipments falling 18% year-on-year to 15.8 million units. Third-placed Dell posted healthy growth of 6%, with shipments reaching 13.7 million units thanks to its strong business focus, the company added.

Apple and Asus also saw growth, increasing their shipments by 8% and 24% and occupying the fourth and fifth positions respectively. “The first quarter of 2022 brought another wave of headwinds to the PC market,” said Ishan Dutt, principal analyst at Canalys. “Global earthquake events negatively impacted both demand and supply, hitting the industry at a time when consumer and education buying both naturally slowed after the highs in the last year.”

The war in Ukraine has exacerbated the inflationary environment in major markets by driving up the price of commodities, ranging from oil and gas to metals to foodstuffs. At the same time, the Covid-related lockdowns in Shenzhen and Shanghai created new bottlenecks in manufacturing and distribution, just as suppliers and the channel began to find their feet. With no clear timeline for resolving these issues and the possibility of more black swan events, the industry must be ready to take on a new set of challenges and respond with the same resilience it has done. evidence over the past two years, Dutt noted. in one release.

Although India-specific figures have yet to be released, Doshi speaking to Activity area said Asia-Pacific, which includes India, saw growth in shipments. “Even though global PC market shipments fell 3% after seven consecutive quarters of growth, the APAC region, which includes India, saw continued growth. The APAC region has seen growth of around 20% and India would be largely in line with this growth. We would release an India-specific PC market picture in about a month,” he added.

Published on

April 12, 2022