Why Did PC Industry Boom in 2020?

Anagha S Anagha S
Jun 6, 2021 6 min read
Why Did PC Industry Boom in 2020?

Altering the way we communicate, perceive things, do business and what not, the advent of Personal Computers have revolutionised the fortune of human beings for the best. Although computers were used since the 1950s, it was only in 1975 that personal computers were launched.

Until then it was a far away reality for most of the people. From being super heavy, complicated and relatively slow instruments PCs have come a great way to fit into our office bags.

Many people thought that the circle of life of PCs was going to end soon. Some even predicted its death to be in the last decade. Amidst all those predictions, PC has emerged once again as one of the most profit earning industries in 2020. The reason behind it are the great changes that came along with the Coronavirus.

Growth of Pc industry during the Pandemic
Remote learning during the Pandemic
How did different sections in the society add to the growth of Pc Market
Statistics of Pc industry
FAQ

Growth of Pc industry during the Pandemic

2020 was marked by the perils of Coronavirus across the globe. However, the PC industry is one among the lucky ones who were able to get their best. With lockdowns and restrictions being continued throughout.

The pandemic saw a large number of hitherto offline ventures shifting online. Reports say that this change would not have been possible or even thinkable under normal circumstances.

In India, even court proceedings were done remotely. Work From Home became the norm for most of the employed people. Adding icing to the cake, studies have shown that remote working employees work 1.4 times more than the work they do in offices. There have also been many companies that have already decided to continue work from home even when the pandemic recedes.


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Remote learning during the Pandemic

Remote learning and online classes became the only option left for students to continue their studies. Places which risked the health of students to open up educational institutions faced fatal setbacks.

When classes took to online platforms, so did the accompanied assignments and project works. Mobile phones which were supposed to put an end to the PC industry became insufficient for the kind of work that students are getting.

The limitations of mobile phones also included inability to ensure proper sitting posture, health issues that arise with staring on to small screens, distractions caused by plethora of notifications and so on. People who had been confined to small screens soon expanded to bigger and sometimes ultra wide laptop screens.


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How did different sections in the society add to the growth of Pc Market

As the pandemic gripped tighter on people, it came to a situation where everyone in the family needed a laptop. Even young children resorted to laptops since all other forms of outdoor activities were put on hold.

Same was the case for homemakers who used to find time for a lot of outdoor ventures. So, the people who have money ensure that each one of them has a laptop which satisfies their needs. In this case, the increased addiction to gaming has to be mentioned. This has also contributed significantly to the increase in laptop sales.

The middle class have a different story to narrate. With incomes dwindling and restrictions mounting, laptops became an unavoidable part of their lives. People who had a laptop from work managed everything else with it while the others etched out the money to buy a laptop from their savings. This came as an additional boost to the PC industry with an increased sale from a client base that was very narrow until now.

The other people who couldnโ€™t afford a laptop on their own did not have to stay disconnected. They were helped by various NGOs and government schemes. Capable people who knew families who were struggling due to the sudden paradigm shift did not hesitate to purchase the necessary gadget for them.

All these add up to one fact - that the PC industry had a great comeback in this unprecedented time. The extent of it will be understood when we realise that there was a supply crunch due to this demand which made the manufacturers ramp up production with immediate effect. However, it should be noted that there is a large consumer base on which the PC industry has not tapped yet.


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Statistics of Pc industry

Worldwide PC Shipments
Worldwide PC Shipments

According to Canalys, which is a global technical marketing analyst firm, the PC segment which is inclusive of desktops, laptops, notebooks, tablets etc registered a growth of 11% in 2020 alone. This means that the industry's shipment reached more than 297 million units.

According to Worldwide Quarterly Personal Computing Device Tracker three fourths of this shipment constituted Notebooks. There was 74.1% growth in the consumer segment and 14.1% growth in the enterprise segment.

As mentioned earlier, the death of PCs was almost declared by many people. This kind of an increase in business was seen after 10 years. It was in 2010 that the PC industry recorded a growth of 13.1% along with 302 million shipments according to IDC.

Amongst the PC manufacturing companies, Lenovo recorded the maximum growth of 12% in 2020. According to the findings of Canalys and IDC, Lenovoโ€™s market share stands at 24%. There is no dispute about this fact.

In the second place comes HP which recorded 67 million shipments along with a market share of more than 22% in 2020. Dell came in the third position with regard to the growth rate. Both Canalys and IDC repeated that it had over 50 million shipments recorded in a year. Their market share also touched an impressive 16%.

The premium player in the market, Apple also did not fail to register tremendous growth. It has over 22.592 million shipments to its credit. This accounts for an annual growth rate of 16.6% with a growth in market share from 7.2% to 7.6%. However, according to IDC, Apple registered the highest growth among all the companies with 29.1% in 2020. ย  ย  ย 

Conclusion

The current surge in the PC industry once again reiterates the observation that โ€œthere is nothing called the post PC eraโ€. Various analysts have also opinionated that this trend is likely to continue for some more time. This is mainly because many firms found out that productivity has increased and expenses have decreased when things are taken to PCs within your homes.

With or without work, PCs have become an indispensable part of our lives and now there is no going back. Be it work, leisure time, research, shopping or studies, a PC serves the purpose in an efficient manner. And when there are enough manufacturers delivering exactly and sometimes more than what people expect, no one can ever avoid buying it. However, it is also important to expect the advance of something more revolutionary in future. And let's all hope for the best.

FAQ

Which company sold the most computers in 2020?

Lenovo saw the most shipments of PC in 2020, followed by HP in second place, and Dell in third.

Is the PC market growing?

As estimated by Canalys PC market saw a growth of around 55%.

Is the computer industry attractive?

Yes, It can be said that the PC industry is fairly attractive for well-established, global and leading companies.

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