Top 5 notebooks shipments decline due to Shortage of chips led

Top 5 notebooks shipments decline due to Shortage of chips led

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Top 5 notebooks shipments decline due to Shortage of chips led

 

As per the Digitimes report, there has been a dip in the shipments of the top 5 global notebook brands (Excluding Apple) drop 7% on month in May. It is really alarming to find that despite strong notebook demand from the end market, still there has been a dip in the shipments of the products in the last month. 

  • Lenovo has been able to achieve a growth of 1%
  • The worldwide semiconductor shortage will persist through 2021

The world is captivated with the global chip shortage hence the demand for semiconductor is leaping beyond supply capacity. This shortage is not only hampering the carmakers and automotive segment, but the laptop and smartphones are also going to be a huge hit. 

Chips are now in everything that we use be it watches, smartphones, fridges or cars Manufacturers are facing a lot of hurdles as there is a crunch in the market. 

A Gartner report indicates that it would take about a year or come back to normal. 

Gartner Index of Inventory Semiconductor Supply Chain Tracking – Projected Worldwide Semiconductor Inventory Index Movement, 2021-2022

Notebook Shipment

Note: 1Q21 is a modelled estimate and is subject to change based on actual financials reported by vendors in 2Q21. The index bar for 2Q21 to 4Q22 is only a directional estimate. Source: Gartner (May 2021)

The laptop manufacturers have been hit hard by the semiconductor shortage  in May, which has bridged the gap of demand and the shortage in supply in this month. While the demand for products remains strong, but companies are still having trouble buying all the components they need to build them.

According to the report, one of the leading manufacturers of laptop, HP, saw inventory increase at channel in May, but the vendor’s shipments were weaker than expected due to serious problems concerning components incompatibility.

Lenovo has been able to achieve a growth of 1% within the global top 3, owing to the stocking inventory for the 618promotion campaign in China and was gaining market share from other Chinese competitors.

Dell’s shipments lowered due to the downfall also slipped on month in May, as the supply of the customized components for Dell’s enterprise models had worsened.

The worldwide semiconductor shortage will persist through 2021, and is expected to recover to normal levels by the second quarter of 2022, according to Gartner, Inc.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices,” said Kanishka Chauhan, principal research analyst at Gartner.