Next year will be difficult for PC sales Context warns

The second half of next year will be pants for the PC channel according to Context analysts.

Apparently, this year was only much chop because the corporate market was strong, fueled by users looking to move away from Windows 7, and the consumer side remaining in the doldrums as users look to spend their money on other formats.

The support for Windows 7 switches off next month but Intel CPU delays have plagued the market all year and made it difficult for some users to make the switch to fresh hardware. That means the same conditions should play out for at least the first half of the year.

But Context thinks that demand to weaken after January and anyone hoping that the consumer side might kick into life and make up for the commercial declines is probably going to be disappointed with demand for desktops and laptops looking weak.

The analyst house did signal some positives though with digital transformation set to continue to drive customer investments in hardware, particularly high-performance machines that can handle data analytics. That should help keep ASP high and help the channel on the margin front.

Context senior analyst Marie-Christine Pygott said: “In many ways, it was a tale of two markets in 2019 with strong demand in the business sector while consumers decided to spend their money elsewhere. Although commercial demand will weaken after January as consumer sales remain focused around a small number of segments, there is optimism for the year ahead. Digital growth projects are set to continue apace for enterprises in 2020, driving up demand for high-end PCs, while new form factors could join the current crop of segments on consumer wish-lists, helping to improve channel margins.”