Strategy Analytics: Notebook Demand Shows Resilience in Face of COVID-19 Outbreak but for how Long?

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Dell grows 5%, Lenovo grows 1%; Apple and Asus shrink by double-digits as global notebook market contracts by -2%

The first quarter of 2020 proved to be very difficult for many industries but the notebook market escaped the worst of the initial downturn due to the COVID-19 outbreak. According to Strategy Analytics’ newest report, the notebook market shrank by only -2% year-on-year in Q1 2020. Even bigger challenges lie ahead as depressed consumer demand spreads across the world in Q2, leaving top notebook vendors in a precarious situation.

Q1 2020 Preliminary Notebook PC Vendor MS Chart (Source: Strategy Analytics)

The full report from Strategy Analytics’ Connected Computing Devices (CCD) service, Preliminary Global Notebook PC Shipments and Market Share: Q1 2020 Results can be found here: https://www.strategyanalytics.com/access-services/devices/tablets-and-pcs/connected-computing-devices/market-data/report-detail/preliminary-global-notebook-pc-shipments-and-market-share-q1-2020-results-070520

Chirag Upadhyay, Senior Research Analyst added, “Notebook vendors with a heavy reliance on China for its supply chain and those which did not have high levels of inventory before the COVID-19 outbreak had most difficulty in Q1 on a global basis. From a consumer demand standpoint, the vendors which are most reliant on the Chinese domestic market experienced the biggest downturns. All of that aside, the notebook market only shrank -2% year-on-year and compared to most other consumer electronics segments, this should be considered a success in a very tough environment.”

Eric Smith, Director – Connected Computing said, “We expect that as COVID-19 spreads globally in Q2, large corporations and educational institutions will place more orders for notebooks to support work/learn-from-home initiatives around the world. As more families are stuck in their homes during quarantine orders, there are too few productivity devices for all members of a household to get their work done. Consumer demand will be soft as average people face economic hardship, but commercial demand could balance out that softness.”

Exhibit 1: Notebook Market Beat Gloomy Expectations in Q1 20201

Global Notebook PC Shipments by Vendor
(Preliminary Results, Millions of Units)
 
VendorQ1 ’20Q1 ’19Quarterly Growth Y/Y 
Lenovo8.98.81% 
HP8.18.2-1% 
Dell6.96.55% 
Apple3.03.6-16% 
Asus2.53.0-15% 
Others8.58.6-1% 
Totals37.938.6-2% 
      
Global Notebook PC Market Share by Vendor
(Preliminary Results, % of Total Shipments)
 
VendorQ1 ’20Q1 ’19 
Lenovo23.5%22.8% 
HP21.3%21.2% 
Dell18.2%16.9% 
Apple8.0%9.3% 
Asus6.6%7.6% 
Others22.5%22.2% 
Totals100.0%100.0% 
Source: Strategy Analytics’ Connected Computing Devices service

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