PC Market in the US Takes a Dive Due to Pandemic-Related Chip Supply Issues, May Affect Holiday Shopping

Sophie Webster, Tech Times 12 October 2021, 01:10 pm

global chip shortage — (Photo : Pixabay/PhotoMIX-Company) chip shortage

The PC market in the United States has declined during the recent quarter because of pandemic-related supply issues. This is the first time that the US PC market has declined since the coronavirus pandemic started.

The pandemic has caused hundreds of people to purchase new PCs due to the work from home and study from home order last year.

PC Market in the US Declines

The report revealed by Gartner and IDC shows that the worldwide PC market increased in Q3, but it was a slower rate compared to what was seen last year, according to The Verge.

Gartner, a research company, stated that consumer and educational spending began to shift away from PCs to other things during the first quarter of the year. This led to less demand for PCs.

That is shown by a 17% decrease in laptop shipments, especially Chromebooks. Gartner has included the number in its PC shipments for the first time in the first quarter of 2021.

Gartner stated that there were 84.1 million shipments of PCs in Q3, while IDC stated that there were 86.7 million shipments of PCs.

Also Read: Huawei: US to Blame for Global Chip Shortage That Could Trigger Economic Crisis

IDC and Canalys stated that the supply issue is due to the pandemic. Jitesh Ubrani, the research manager for IDC's mobile and consumer device trackers, said that the PC industry continues to be hampered by supply and logistical challenges.

Unfortunately, these issues have not seen much improvement in the past few months.

The supply issues seem to have affected laptops more than desktops. Both Gartner and Canalys showed stronger growth with desktops, according to Ars Technica.

Gartner stated that the chip shortages are expected to continue until the first half of 2022. The research firm said this right after Nvidia, Microsoft, and TSMC have warned about chip shortages and how it will be felt until 2022.

Also, the chip shortage may cause a price hike in PCs and other gadgets as a result of the global chip shortage.

The shortages and the PC market performance in the U.S. come just as Microsoft has launched its new software, Windows 11.

The software giant began shipping Surface devices last week, and they have Windows 11 already installed in them, together with laptops from OEMs such as Lenovo, HP, and Asus.

Other PC makers such as Samsung, Acer, Lenovo, and Dell will be releasing devices with Windows 11 software in the next couple of months.

The chip shortage could make it challenging to find a PC with Windows 11, especially since the holiday season is coming up.

The supply chain problem is affecting power management circuits, Wi-Fi modules, and other factors.

Global Chip Shortage

Due to the increasing demand for PCs, vehicles, and other gadgets, Sony and TSMC are thinking of creating a semiconductor factory together in Japan's western Kumamoto Prefecture, according to Reuters.

TSMC would have most of the control in the factory, according to reports. But the factory would operate on Sony's terms as it will be built near Sony's image sensor factory.

The Japanese government would cover up half of the $7 billion investment.

The factory would also provide chips for cameras and other gadgets. Denso, a car parts company, is interested in the project. If the project between TSMC and Sony pushes through, the factory will be in operation by 2024.

Both Sony and TSMC have declined to comment on the matter. However, TSMC stated in the past that it was actively reviewing plans for an effort similar to the semiconductor factory project.