Report Wire - Laptop demand ebbs as pandemic eases

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Laptop demand ebbs as pandemic eases

2 min read
To be sure, experts believe that growth from the business-to-business (B2B) segment will return later in the year. (Bloomberg)

NEW DELHI : The pandemic-led shift to distant work, which fuelled huge demand for PCs and laptops within the final two years, is beginning to fade.

Analysts and IT business specialists count on gross sales to weaken additional as a consequence of a stoop in client demand pushed by inflationary pressures. This, in flip, will pressure manufacturers to chop costs of client laptops and supply both reductions or bundled gives for industrial offers.

“PC refresh occurs in cycles. We are previous the very best cycle which was throughout covid-19. That kind of development cycle won’t occur once more. The double-digit decline will proceed for the following 2-3 quarters,” said Tarun Pathak, research director at Counterpoint Research.

PC shipments in India fell by 11.7% in the September quarter in the first decline after eight straight quarters of growth, according to data issued by research firm the International Data Corporation (IDC) in November. Navkendar Singh, associate vice president, devices research at IDC, said brands will be forced to cut prices to clear their inventories.

“Businesses too are holding back some spending,” mentioned Ranjit Atwal, senior director analyst at Gartner. Enterprises and companies shopping for workers laptops for hybrid or distant work was one of many fundamental drivers for the market within the final eight quarters.

To make certain, specialists consider that development from the business-to-business (B2B) section will return later within the yr. “You would possibly see a number of B2B sort bundling gives like again to high school or work. Positioning of PCs will change and will probably be extra B2B oriented. Consumer section will stay below strain as we’re previous that covid-induced demand curve,” said Pathak.

“The 2020-21 growth levels are not sustainable. Though shipments will continue to fall, it will not go back to the pre-pandemic lows,” mentioned Singh.

Brands aren’t giving up simply but both. Sudhir Goel, chief enterprise officer, Acer India, mentioned PCs are nonetheless below penetrated in India as in comparison with cellphones. “Hence, there’s nonetheless a number of potential for PCs to develop with segments like gaming, authorities, BFSI, and first-time consumers,” he mentioned.

Counterpoint’s Pathak mentioned premium laptops, together with Apple’s MacBooks, will stay insulated from the stoop in demand.

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