PC market growth expected to slow down due to chip shortages and decrease in demand

Lenovo took the top spot with 23.9 percent of the market share in Q2 2021

Lenovo ThinkPad X1 Extreme

Reports indicate that the PC market is showing early signs of the growth rate slowing down due to chip shortages and demand decreasing.

The IDC notes that the surge in PC demand continued through the second quarter of 2021 as shipments reached 83.6 million units, which is up 13.2 percent from the second quarter of 2020.

However, the firm outlines that the market faces mixed signals as far as demand is concerned for the rest of the year.

“With businesses opening back up, demand potential in the commercial segment appears promising. However, there are also early indicators of consumer demand slowing down as people shift spending priorities after nearly a year of aggressive PC buying,” IDC’s Neha Mahajan states.

Further, a separate report from Gartner notes that while PC demand remained above pre-pandemic levels in Q2 2021, there has been a “marked deceleration” in growth compared to the record year-over-year growth of 35.7 percent in the first quarter of 2021.

Gartner says that this is due in part to the ongoing component shortages.

“The global semiconductor shortage and subsequent component supply constraints have extended lead time for some enterprise mobile PC models to as long as 120 days,” said Gartner’s Mikako Kitagawa in the report.

“This has led to prices increasing in the bill of materials, which vendors have passed on to end users. Moving forward, rising prices could continue to slow PC demand through the next 6 to 12 months.”

As for the companies with the most shipments in Q2 2021, Lenovo took the top spot with 23.9 percent of the market share.

HP came in second place with 22.2 percent and Dell rounded out the top three with 16.7 percent. Apple followed with 7.4 percent of the market share and Acer came in fifth place with 7.3 percent.

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