A funny thing happened as we waited out a year of stay-at-home orders and telecommuting. Those PCs that many people have relegated to a spare bedroom and largely ignored since getting their tablet became a lot more important.
Demand for personal computers soared to its highest point in 10 years in 2020, with worldwide shipments increasing 13.1% year over year, according to IDC. That follows a decade that included six years of market decline and one year of flat growth.
The reasons for the surge likely won’t shock you: More people were working from home last year and more students were taking part in distance learning programs. Many people either needed to update their equipment or buy additional devices.
But demand was nearly as strong from those who just wanted a break from the monotony of things. There is, after all, only so much Tiger King mania one person can handle. PCs, consumers decided, were an item that could enhance life at home – and with money not being spent on travel or other typical luxuries, there was a budget in many households to buy or upgrade.
“The strength of the consumer market should not be overlooked,” says Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers. “We continue to see gaming PCs and monitor sales at all-time highs and Chrome-based devices are expanding beyond education into the consumer market."
Research firm Gartner also saw a rise in PC sales, but its numbers weren’t quite as ebullient. Worldwide PC shipments hit 275 million units in 2020, a 4.8% increase from 2019, says the research firm (versus IDC’s count of just under 303 million). It agrees with IDC, though, that those numbers were the highest growth in ten years.
“Prior to 2020, consumers had been shifting to a phone-first focus, yet the pandemic reversed this trend,” says Mikako Kitagawa, research director at Gartner. “PCs have resurfaced as an essential device as consumers, including younger children, are relying on them for work, school, socializing and be entertained from their homes.”
Gartner, it’s worth noting, does not include Chromebooks – which are very popular with eLearners – in its results. IDC does. However, Gartner did mention separately that in 2020, Chromebook shipments hit nearly 30 million, an increase of more than 80% over 2019.
Cementing the numbers, research firm Canalys says total PC shipments grew 11% in 2020, with the highest shipment volume since 2014.
The demand was almost solely from home users, as business PC spending in the U.S. was understandably lower. However, Gartner notes, that in regions where the economic recovery from the pandemic is underway – such as China – business growth is once again on the upswing.
Lenovo was the biggest winner from this surge in PC demand, with both IDC and Gartner showing its market leadership expanding over its competitors. (HP had the second highest shipments. Dell was third.)
Analysts say there could be some ongoing momentum in PC sales, especially as people continue to work and attend school from home, which could result in a continued upswing through 2021.
"Demand is pushing the PC market forward and all signs indicate this surge still has a way to go," says Reith. “In retrospect, the pandemic not only fueled PC market demand but also created opportunities that resulted in a market expansion.”
“2021 is shaping up to be an even more exciting year for PCs,” adds Ishan Dutt, an analyst at Canalys. “Innovations in chipsets, operating systems, connectivity and form factors will take center stage as the PC industry caters to a broader range of customers that bring with them new behaviors and use cases.”
Gartner’s Kitagawa agrees, but is a bit more skeptical when it comes to how long this rush will last. A lot will depend, ultimately, on how permanently people’s habits have changed.
“This momentum is likely to continue through at least the first half of 2021, but it remains to be seen if it will sustain in the post-pandemic era as it will depend on the permanency of the changes driving demand,” she says. “For instance, online education may continue even after schools open, consumers may still buy groceries online, and some businesses may continue full- or part-time remote work. If these scenarios persist, then PCs will return to consumers’ daily lives as an essential device.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chris Morris
Chris Morris is a veteran journalist with more than 30 years of experience, more than half of which were spent with some of the Internet’s biggest sites, including CNNMoney.com, where he was Director of Content Development, and Yahoo! Finance, where he was managing editor. Today, he writes for dozens of national outlets including Digital Trends, Fortune, and CNBC.com.
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