PC Supply, Plant Capacity Should Reach ‘Balance’ by Midyear, Says IDC

Global shipments of traditional PCs are forecast to grow 18.2% this year to 357.4 million units, on top of the 12.9% growth in 2020, reported IDC Wednesday. “The largest drivers of demand continue to be consumers and students needing reliable systems to be productive and connected.” IDC also believes “strong demand exists for new PCs to enable hybrid use cases that will be required as the world finds a post COVID-19 normal,” it said. It projected the market will sustain a 2.5% compound annual growth rate through 2025. PC demand will continue experiencing “meaningful tailwinds," said IDC analyst Ryan Reith. "This is all happening while education backlogs continue to grow and retail channel inventory in many geographies is still well below historical levels.” There was a large backlog of PC shipments heading into 2021, said IDC. “Depending on how long this demand continues there is a strong likelihood we will enter 2022 with an outsized backlog, albeit not as significant as current levels." Supply concerns for the PC industry remain due to global semiconductor shortages, and as strong demand continues, “so does the pressure on suppliers to increase capacity,” said IDC: “Assuming no further supply disruptions, PC supply and manufacturing capacity should be in balance by the middle of 2021.”