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PC components shortage to continue until 2022

Hamna HumailWeb Editor

28th Dec, 2020. 05:34 pm
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PC components

2020 was a bad year for most industries, PC manufacturers enjoyed booming sales as people and businesses transitioned to work-from-home models.

That being said, many companies are still far away from fulfilling their outstanding orders. Reuters reports that the industry shortage isn’t likely to be cleared until 2022. The combination of increased purchasing and supply chain disruptions caused by the pandemic has proven to be a bigger challenge than most experts originally predicted.

Prior to the chaos caused by the pandemic, the PC industry was in decline. In 2008, global PC shipments peaked at 300 million per year. The following years saw that figure shrink dramatically, dropping as low as 250 million in recent years.

Now, analysts project that there will be 300 million PC shipments in 2020. That marks a 15 percent increase from last year. The growth can be attributed to COVID-19 for remote workers, students, and those who want to stay entertained at home, a PC is essential.

While the boom in PC sales is a good thing for the industry, not all manufacturers were ready for it. Many were forced to add new suppliers and adjust their shipping patterns to keep up with demand.

For instance, Acer has been absorbing the cost of delivering its laptops via plane rather than using freight barges or trains to decrease shipping times. Even so, since the pandemic forced assembly lines to shut down earlier in the year, many companies are running behind with their shipments.

That has left certain components—like processors and displays—in short supply. Acer’s Gregg Prendergast says, “The whole supply chain has been strained like never before.”

Upgrades and Stimulus

While 2020 was all about buying out of necessity, experts believe that 2021 will be defined by upgrades. Manufacturers have been working hard to respond to the changing needs of consumers.

There are a number of devices coming to market next year that are full of features popularized by the pandemic. For instance, things like high-definition cameras for Zoom calls and cellular chips to access new 5G networks will be important for upcoming devices.

One thing is for sure that PC components will still be hard to find next year.

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