Global chip shortage and lower demand quells PC market growth

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In recent years, the market for PC components has continued to grow. Despite dealing with a year of parts shortages and a global pandemic, the market remained strong throughout 2020. However, with the global chip shortage still ongoing, the market is starting to falter.

Reported by The Verge, the global chip shortage is resulting in a slow year for PC manufacturers worldwide. Unfortunately, that shortage doesn’t have any signs of stopping for the rest of this year as least.

The PC Market is battered

Corroborated by IDC and Garter, the second financial quarter has seen a drastic slump in PC shipments due to the lack of available parts. Demand for computers remains identical to demand prior to 2020, but a year of “aggressive PC buying" and the lack of available parts is causing a huge issue.

IDC has counted 83 million sold PCs for Q2 2021; Garter counts 71 million minus Chromebook sales. While consumer PC sales remain on the strong side, Enterprise sales are disappointing, likely due to work-from-home workers using home PCs.

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Neha Mahajan, a senior research analyst at IDC explains:

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“The market faces mixed signals as far as demand is concerned. With businesses opening back up, demand potential in the commercial segment appears promising. However, there are also early indicators of consumer demand slowing down.”

Read More: Windows 11 only gives users 10 days to switch back to Windows 10

Is there hope for PC amid the global ship shortage?

It would seem that the lower sales of PCs is likely due to the end of a rather sprightly sales boom. During the pandemic, millions realised the need for a PC, whether that's for hobbies, work or socialising.

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The Verge theorises that the PC market could see some growth later this year. The release of Windows 11 and its heightened requirements will cause some home consumers and enterprises to upgrade their rigs.

As for the global ship shortage, there doesn't seem to be a hint of that slowing down. However, as the world begins to heal from a trying year-and-a-half, there's hope that production could be increased to meet demand.

Read More: Samsung cancels Galaxy Note 21 as there's no chips to go around