Demand is increasing continuously due to work-from-home, but supply decreased by 45%. Demand is increasing continuously due to work-from-home, but supply decreased by 45%


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  • Demand Is Increasing Continuously Due To Work from home, But Supply Decreased By 45%

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According to a report, the demand for PC shipments is increasing continuously in the world market. Due to which the Q1 2021 chip shortfall has increased by 45% (on-year) to 7.56 crores. Chip shortages are impacting shipment schedules for PC brands and ODM (original design manufacturing) in the second half.

With 24% market share, Lenovo again took first place in Q1 2021, followed by HP at 23% and Dell at 17%.

Increasing demand from work-from-home
According to Counterpoint Research, the overall growth of the PC market is primarily driven by the growing trend of gaming notebooks, rising demand for work-from-home and study-from-home segments. Which has increased the sales of Chromebooks.

Top 6 sellers are expected to remain in the market
Whereas in Q2 2021, PC shipments may be more or less due to higher demand from Q1 2021 to this quarter. William Lee, Research Analyst in the Semiconductor and Components team, says that we are confident that the top 6 sellers will continue to dominate the market with a share of over 85%.

Problem caused by lack of ODM main components
However, ODMs still face shortage of main components like power management IC, display driver IC (with display panel) and CPU. “We have found a 20 per cent to 30 per cent gap between order (end-demand) and actual shipments, mainly due to component shortages starting from H2 2020. Some chip vendors have also reported this,” Lee said. Said that the demand for audio codec IC and LAN chip has not been up to the expectations and will remain so in the second half of this year also.


By the end of 2022, there will be a reduction in the demand supply gap.
PC brands and ODMs may not fully correct the deficiency as well as the order backlog may not be cleared. The report expects the demand-supply gap to gradually normalize by the end of H1 2022. In the second half of this year, the momentum will continue as compared to the previous half. Along with the demand for back-to-school (there will be some virtual classes), the demand from H1 2021 will be huge.

What is the reason for chip shortage?
According to experts, due to the Kovid-19 epidemic, the problem of chip shorts is being faced. In the era of Corona, the demand for other electronic devices including cell phones and laptops has increased worldwide. In March 2020, due to the lockdown, the vehicle companies canceled the order. Now unlocking has started, due to which factories have also started opening across the world and demand has increased again. This is the reason why the chip is not being fulfilled.

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