Supply chain problems are starting to drag down growth in the PC market, particularly in North America. During Q3 2021, PC shipments to the US and Canada dropped by 9% compared to the same time period last year, according to research firm Canalys.
IDC, another research firm, also reports a Q3 shipment decrease for the US, calling it the "first quarter of annual shipment decline since the beginning of the pandemic."
2020 was the biggest year for PC demand in a decade. However, a host of supply chain problems are preventing the electronics industry from meeting the continued demand. The world continues to grapple with an epic semiconductor shortage, and COVID-19 outbreaks are still shutting down factories in Asia. Meanwhile, both manufacturers and the shipping industry are struggling to retain and hire enough workers.
None of this bodes well for the holiday shopping season. “The shortfall in supply of PCs is expected to last well into 2022, with the holiday season of this year set to see a significant portion of orders not met,” says Ishan Dutt, a senior analyst at Canalys.
At the same time, spending on PCs seems to be dropping off in the US. “After a year of accelerated buying driven by the shift to remote work and learning, there’s also been a comparative slowdown in PC spending, and that has caused some softening of the US PC market today,” says IDC analyst Neha Mahajan.
Still, PC shipments overall were actually up year over year by 5% according to Canalys. That’s because other regions, such as Latin America, Europe, the Middle East and Africa, and Asia, registered strong annual growth in the double digits.
IDC also finds that overall PC market growth in Q3 was up 3.9%. “Given the current circumstances, we are seeing some vendors reprioritize shipments amongst various markets, allowing emerging markets to maintain growth momentum while some mature markets begin to slow,” says IDC analyst Jitesh Ubrani.