Channel warned of 'much weaker' PC market in 2020

Commercial demand to die down after January

Partners have been warned to expect a downturn in the PC market in 2020, with negative growth expected in the second half of the year, according to Context.

The analyst said that commercial sales of PCs "will gradually weaken" after Microsoft's support of Windows 7 ends, while Intel's supply issues will continue to have an effect.

"Unfortunately, the consumer market is unlikely to see enough growth to compensate for this slump on the business side, with demand for mainstream desktop and notebook systems set to remain weak," Context said.

But the analyst said that sales of high-performance systems will continue to be strong as businesses continue to digitally transform.

This will drive up the average price, and therefore margins, Context added.

"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," said Context's Marie-Christine Pygott.

"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."

Context said that on the consumer side, sales of light notebooks, Chromebooks and gaming PCs will remain strong.