PC demand ‘soared’ in Q1 2020, but limited supply cut shipments

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PC shipments fell by eight percent in the first quarter of 2020 compared to the same period in 2019, according to the latest report from research firm Canalys. That’s the largest drop since 2016, but it’s in spite of surging demand.

According to Canalys, PC makers saw demand “soar” in Q1 as more workers and students began working from home during the COVID-19 coronavirus pandemic. However, constraints on the supply chain meant a drop in shipments.

“The PC industry has been boosted by the global COVID-19 lockdown, with products flying off the shelves throughout Q1,” said Canalys research director Rushabh Doshi. “But PC makers started 2020 with a constrained supply of Intel processors, caused by a botched transition to 10nm nodes. This was exacerbated when factories in China were unable to reopen after the Lunar New Year holidays.”

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Heading into Q2, Canalys doesn’t see the surge in demand holding steady. “Few businesses will be spending on technology for there offices, while many homes will have been freshly equipped,” says Canalys analyst Ishan Dutt. “A global recession has begun — businesses will go bankrupt, with millions newly unemployed.”

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