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Devices

Devices

Global market for personal computing devices will be impacted by COVID-19, according to IDC

Via IDC

Feb 27, 2020

February 27, 2020, FRAMINGHAM, MASS., USA: With 2019 in the rearview mirror and the emergence of the COVID-19 virus, International Data Corporation (IDC) has lowered its forecast for personal computing devices (PCDs), inclusive of desktops, notebooks, workstations, and tablets. According to new projections from the Worldwide Quarterly Personal Computing Device Tracker, overall PCD shipments will decline 9.0% in 2020 reaching 374.2 million by year's end. However, the long-term forecast remains slightly positive as global shipments are forecast to grow to 377.2 million in 2024 with a five-year compound annual growth rate (CAGR) of 0.2%.

The decline in 2020 is attributed to two significant factors; the Windows 7 to Windows 10 transition creates tougher year-over-year growth comparisons from here on out and, more recently, the spread of COVID-19 is hampering supply and leading to reduced demand. As a result, IDC forecasts a decline of 8.2% in shipments during the first quarter of 2020 (1Q20), followed by a decline of 12.7% in 2Q20 as the existing inventory of components and finished goods from the first quarter will have been depleted by the second quarter. In the second half of the year, growth rates are expected to improve though the market will remain in decline.

"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," said Linn Huang, research vice president, Devices & Displays. "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."

"There's no doubt that 2020 will remain challenged as manufacturing levels are at an all-time low and even the products that are ready to ship face issues with logistics," added Jitesh Ubrani research manager for IDC's Worldwide Mobile Device Trackers. "Lost wages associated with factory shutdowns and the overall reduction in quality of life will further the decline in the second half of the year as demand will be negatively impacted."

Assuming the spread of the virus subsides in 2020, IDC anticipates minor growth in 2021 as the market returns to normal with growth stemming from modern form factors such as thin and light notebooks, detachable tablets, and convertible laptops. Many commercial organizations are expected to refresh their devices and move towards these modern form factors in an effort to attract and retain a younger workforce. Meanwhile, consumer demand in gaming as well as the rise in cellular-enabled PCs and tablets will also help provide a marginal uplift.

More Info

Related Topics
  • 6G Research and Innovation,
  • Announcement,
  • Coronavirus,
  • Data & Analytics,
  • Devices,
  • Global,
  • IDC,
  • Manufacturing & Industry 4.0,
  • Network Automation,
  • Retail,
  • Tracker

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