Due to skyrocketing COVID demand for desktops and notebooks from businesses and individuals, PC makers ran into trouble building enough computers and procuring ample components. However, as store shelves are now mostly stocked, PC demand has slowed due to inflation and uncertainties caused by the war in Ukraine. As a result, Acer chairman Jason Chen warned this week that an oversupply of notebooks is coming.
Consumer PC Demand Weakening
Rising prices of energy, food, and other critical items have resulted in record inflation rates around the globe. As a result, many people are reconsidering their spending habits and cutting back on technology purchases. In general, the recent months were not particularly good for client PC sales in the consumer sector, reports DigiTimes. Acer, Asus, and HP indicated in the recent weeks that the consumer market was showing signs of weakness and demand was decreasing.
“From a demand perspective, we expect to continue to see strong commercial demand with some softening of the consumer businesses,” said Enrique Lores, President and CEO of HP, at the company’s earnings call on May 31. “From a supply perspective, we see two quarters of constraints. First is the industry-wide component shortages that we expect will continue through fiscal 2022; second, are the COVID-related disruptions in China, which we expect will primarily impact fiscal Q3.”