Optimistic PC Market Forecast in Jeopardy due to Part Shortages

In 2021, PC shipments are expected to rise 18.1% despite global semiconductor shortages, according to the International Data Corporation (IDC). However, shortages for other parts could affect that prediction.

The IDC notes that PC CPU supply is holding up – but the PC market faces risk due to lower-priced components such as Notebook panel driver ICs, audio codecs, sensors and power management ICs.  These legacy components are worth watching as most of the tech industry is focusing on CPU shortages.

The expectation is that PC shipments will rise this year, however if the availability of any of these parts decrease, PC sales will likely take a hit. The industry is already experiencing shortages. Technology stores across the country are hanging signs notifying customers they are out of various laptop models and Samsung has begun sending emails about changing delivery times for its Galaxy Book Pro 360.

IDC semiconductor analyst, Mario Morales, expects shortages to ease by Q3.  He notes, “Mature technology nodes account for more than 50% of all the capacity in the semiconductor industry and suppliers are only gradually increasing capacity as they prioritize on the largest segments of their business and invest more on mainstream and leading-edge nodes. IDC expects that shortages will begin to ease by the end of Q3 this year. A broader upstream balance of the industry is not expected until the first half of 2022.”

The IDC also notes that PC inventory across all consumer, education and commercial markets are way below normal.

With laptop shortages spanning across all verticals, one idea is that buyers could pivot to buying desktop computers instead. 

Story via zdnet.com