Higher Demand, Tight Processor Supply Led to Q1 PC Unit Drop Amid COVID, Canalys Says

Demand for PCs soared in Q1, driven by remote working and global lockdown measures, but the coronavirus caused “severe delays in production and logistical issues," leading to a global decline of 8% in shipments year on year, said Canalys Friday. Vendors shipped 53.7 million desktops, notebooks and workstations. PC makers started 2020 facing a constrained supply of Intel processors caused by a “botched transition to 10-nanometer nodes," said analyst Rushabh Doshi. The outbreak exacerbated the shortage when factories in China temporarily shut. The analyst predicts PC vendors report “healthy profits,” with operating margins for most reaching highs. Lenovo continued to lead, shipping 12.8 million units, followed by HP with 11.7 million and Dell with 10.5 million. Apple was hit hardest, tumbling 20% to 3.2 million.