The pandemic has helped many industries much like it made several others bleed. The PC market, which includes laptops and tablets, was on the decline since the advent of smartphones. It got a fresh lease of life following the coronavirus outbreak as millions worked and learned from home.
This saw PC sales bounce back to multi-year highs. With the pandemic far from over, it is likely that people will prefer working and learning from home, driving PC sales in the coming days.
PC Sales Continue to Grow
According to IDC’s
Worldwide Quarterly Personal Computing Device Tracker, the global shipment of PCs that include laptops and tablets, desktops and notebooks, hit 83.6 million units in the second quarter, growing 13.2% on a year-over-year basis.
Growth has somewhat slowed down for PC sales with offices and schools starting to open following the massive vaccination drive. Yet, the market is likely to grow over the next few years.
According to the report, global PC shipments are expected to hit 347 million units in 2021, suggesting growth of 14.2%. The tablet market is expected to grow 3.4%.
Between 2021 and 2025, the traditional PCs — inclusive of desktops, notebooks and workstations — are projected to witness a CAGR of 3.2%.
That said, PC sales would have grown further this year but were somewhat curtailed by a shortage of microchips, particularly in the second quarter. This resulted in desktop PC growth outpacing portable computers.
This comes after a robust first quarter. According to a report from Canalys, PC shipments surged a whopping 53.1% in the first quarter to 122.1 million units on a year-over-year basis.
Pandemic Helping PC Market
The pandemic breathed life into the age-old PC market, which was dulled by the smartphone trend. Although things are somewhat getting back to as they were, the work-and-learn-from-home culture is the new normal.
Moreover, fresh fears of the Delta variant of coronavirus are once again making governments across the world go slow on their reopening plans. This might continue to aid the PC market.
The videogame market is also helping PC sales. Videogame sales are on an all-time high, thanks to the pandemic once again. Tablets too have seen huge demand during the pandemic and the market is likely to grow in 2021.
Stocks to Watch Apple, Inc. ( AAPL Quick Quote AAPL - Free Report) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. Its signature products include iPhone, Mac and iPad.
The company’s expected earnings growth rate for the current year is 70.4%. The Zacks Consensus Estimate for current-year earnings improved 7.7% over the past 30 days. Apple sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Dell Technologies Inc. ( DELL Quick Quote DELL - Free Report) is a provider of information technology solutions. The company's operating segment consists of Client Solutions, Enterprise Solutions Group and Dell Software Group. The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products, notebooks as well as services and third-party software and peripherals of Client Solutions hardware.
The company’s expected earnings growth rate for the current year is 5.5%. The Zacks Consensus Estimate for current-year earnings improved 0.6% over the past 30 days. Dell has a Zacks Rank #2 (Buy).
Lenovo Group Ltd. ( LNVGY Quick Quote LNVGY - Free Report) is dedicated to building PCs and mobile Internet devices. Lenovo's business is built on product innovation, a highly-efficient global supply chain and strong strategic execution.
The company’s expected earnings growth rate for the current year is 71.4%. The Zacks Consensus Estimate for current-year earnings improved 24.5% over the past 30 days. Lenovo has a Zacks Rank #2.
Alphabet Inc. ( GOOGL Quick Quote GOOGL - Free Report) has been one of the best performers in the PC market lately. One of the biggest reasons behind this is the success of Chromebooks, which has revolutionized the PC market once again.
The company’s expected earnings growth rate for the current year is 73.8%. The Zacks Consensus Estimate for current-year earnings improved 13.3% over the past 30 days. Alphabet has a Zacks Rank #3 (Hold).