With more people than ever working remotely or looking for new solitary hobbies (such as gaming), it’s not surprising that demand for computers and new computer components have soared. CPU and video game makers have seen their shares soar as demand continues to remain strong as we get close to finishing up 2020. With more data now coming in, it seems that PC sales have reached a new 10-year high not seen since 2010.
The biggest winner in this area has been Chromebook sales. Apple’s Chromebooks had seen a 90% increase in Q3 sales, according to one analytics firm specializing in PC shipments. Considering how cheap Chromebooks are for customers needing a simple work laptop, it’s not surprising that sales have jumped so much. At this point, many schools and institutions looking to teach remotely are finding themselves unable to buy new Chromebooks due to the shortage of available computers out there.
Traditional PC manufacturers have seen demand rise significantly as well. Companies like Lenovo, HP, Dell, and Acer are four of the five largest PC manufacturers, asides from Apple. All four of these companies have seen significant increases in computer sales over the past quarter. Companies that manufacture specific computer components have seen a similar increase in demand, as well.
The U.S. PC market, in particular, has seen an 11.4% increase in computer shipments for the third quarter. That’s the first time in around a decade that the market has seen double-digit growth rates. Other research groups that have different metrics put this figure even higher, with some saying that the U.S. market has grown by at least 15%.
“Had the market not been hampered by component shortages, notebook shipments would have soared even higher during the third quarter as market appetite was yet unsatiated,” said Jites Hubrani from IDC, one research organization tracking computer shipments and the overall market.
While demand is soaring, manufacturing capacity hasn’t been able to keep up as much. Companies like Nvidia, which are in the midst of launching their next generation of graphics cards, have seen their models sell out within minutes of being available online. Supplies aren’t expected to stabilize until 2021 at the earliest.
Shares of HP are up around 3.1% on Monday, while companies like Apple are trading as much as 4% up on the day. Most manufacturers have reported significant revenue growth not just in comparison to last year, but even compared to the previous quarter of 2020. In turn, profit margins are up more than ever. It’s a good time for long-term investors in this particular industry, especially since this remote work trend doesn’t seem likely to end anytime soon.
HP Company Profile
HP Inc. is a leading provider of computers, printers, and printer supplies. The company’s two operating business segments are its personal systems, containing notebooks, desktops, and workstations and its printing segment which contains supplies, consumer hardware, and commercial hardware. In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise. The Palo Alto, California based company sells on a global scale with 63% of fiscal 2017 revenue derived from outside the United States. – Warrior Trading News
