Notebook Demand Shows Resilience in Face of COVID-19 Outbreak but for How Long?

Article By : Strategy Analytics

Dell grows 5%, Lenovo grows 1%; Apple and Asus shrink by double-digits as global notebook market contracts by -2%...

The first quarter of 2020 proved to be very difficult for many industries but the notebook market escaped the worst of the initial downturn due to the COVID-19 outbreak. According to Strategy Analytics’ newest report, the notebook market shrank by only -2% year-on-year in Q1 2020. Even bigger challenges lie ahead as depressed consumer demand spreads across the world in Q2, leaving top notebook vendors in a precarious situation.

Q1 2020 Preliminary Notebook PC Vendor MS Chart (Source: Strategy Analytics)Q1 2020 Preliminary Notebook PC Vendor MS Chart (Source: Strategy Analytics)

Chirag Upadhyay, Senior Research Analyst added, “Notebook vendors with a heavy reliance on China for its supply chain and those which did not have high levels of inventory before the COVID-19 outbreak had most difficulty in Q1 on a global basis. From a consumer demand standpoint, the vendors which are most reliant on the Chinese domestic market experienced the biggest downturns. All of that aside, the notebook market only shrank -2% year-on-year and compared to most other consumer electronics segments, this should be considered a success in a very tough environment.”

Eric Smith, Director – Connected Computing said, “We expect that as COVID-19 spreads globally in Q2, large corporations and educational institutions will place more orders for notebooks to support work/learn-from-home initiatives around the world. As more families are stuck in their homes during quarantine orders, there are too few productivity devices for all members of a household to get their work done. Consumer demand will be soft as average people face economic hardship, but commercial demand could balance out that softness.”

Exhibit 1: Notebook Market Beat Gloomy Expectations in Q1 2020

(Source: Strategy Analytics’ Connected Computing Devices service)

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