Laptop demand up as firms mull work-from-home options

Supplies impacted since major production takes place in China

21/03/2020, SANJAY VIJAYAKUMAR,CHENNAI

With an increasing number of companies looking at work-from-home options for its employees amid the COVID-19 outbreak, there has been a sudden spike in demand for laptops. However, there is a shortage in the market due to supply issues, according to industry players.

“The demand has been very sudden, and more companies have been looking to procure laptops, as they adopt work-from-home options. The availability is not on a level to match the demand in time,” said K. Purushothaman, former director at Nasscom.

“For large corporates, the supply works on a built-to-order basis, and is shipped as per requirements. In case of this segment, no one holds an inventory, unlike in the consumer segment. Over the last 45 days, the demand has spiked due to work-from-home policies adopted by firms,” said Mahesh R, business head, digital products, Croma.

Mr. Mahesh pointed out that a majority of production happens in China and most factories were based in Wuhan. As a result of the COVID-19 pandemic, supplies have been impacted. “Normally, what happens is that those who need supply in April will have to shift stocks in February, which is essentially the Chinese New Year time-frame. This was impacted due to the extended holiday there,” Mr. Mahesh said. He also pointed out that Intel accounted for 85% of the processors and they had been facing shortages for the last one year and were focusing on premium models.

The annual size of the Indian personal computing market (desktops, laptops, tablets) is 12 million, of which 4.5 million is the consumer segment and the remaining is the commercial segment.

“The processor issue; the supplies being impacted due to the situation in China; and the weaker rupee pushing up prices, will all result in the inability to cater to the current demand. Our outlets in malls too have been shut,” said Mr. Mahesh.

Jaipal Singh, associate research manager, client devices, IDC India, pointed out factories are operating at only half capacity in China, and this is expected to continue till April. So it will be difficult to meet the demand,” he said.