Western Europe's PC market sees drop amid supply bottlenecks and geopolitical tensions

Research from Canalys shows that PC shipments dropped 3 per cent in Q1 2022

The number of PC shipments in Western Europe fell during the first quarter for 2022 following supply bottlenecks and increasing geopolitical tensions.

Research from Canalys shows 15.8 million units of desktops, notebooks and workstations were delivered in Q1 2022, down three per cent on Q1 2021.

Despite the fall, Canalys says shipment numbers are still above pre-pandemic levels.

"Western Europe has been a resilient market for PC vendors over the last two years, thanks to the region's adaptability in its Covid responses," said research analyst Trang Pham.

"Commercial demand is strong as multiple markets have officially moved toward business-as-usual operations. In fact, nearly 60 per cent of devices shipped in Western Europe in Q1 were for commercial use.

"Nevertheless, the PC market is feeling the squeeze of global supply chain bottlenecks, from lockdowns in China's manufacturing hubs to the ongoing war in Ukraine.

"Longer lead times and rising component costs are forcing employers to plan and budget accordingly to secure devices for the increasingly populated offices as well as hybrid workers."

According to Canalys, Lenovo and HP dominated the PC market in Western Europe with very similar market shares.

Both saw slight annual shipment declines but together accounted for half the region's shipments.

For Lenovo, EMEA is its second-fastest-growing region in revenue terms after China and is likely to remain a key market.

And HP, despite falling demand for Chromebooks, has managed to boost its shipments of high-value PCs, such as gaming, premium and workstation models.

Pham added: "With the current economic outlook for 2022, consumer spending is expected to soften as spending power weakens.

"While PCs have definitively earned the ‘essential' tag in the past two years, consumers will delay new purchases and upgrades unless completely necessary. There is a silver lining though, as resumed business operations, both among SMBs and enterprises, are expected to keep the long-term demand for PCs healthy and strong."