Traditionally, it is believed that the market for personal computers and computer equipment is a steadily growing area, where bulls of completely different stripes are usually invested. Moreover, during the coronavirus pandemic, such a status of companies in the above sector has only been consolidated, because sales of personal computers for both personal and commercial use have grown tremendously. But what can the holders of this market share in the future? We analyze this and other aspects in this material.
In order to understand the situation that is happening with the mentioned sphere now - it is worth going back a little. So, just recently, the computer technology market experienced a real heyday. Due to the fact that many switched to a remote mode of operation, many families needed additional computers, and some consumers of technology began to seriously think about upgrading their hardware. This triggered an explosive growth in sales, which led to a real "coronavirus" jump.
So, over the past year, the value of shares of Dell, HP, which are the leaders of the American market of computer technology, as well as Lenovo Group have grown by more than 50%. This is a huge indicator that allowed many investors to lock in huge profits, but later something went wrong.
Deficiency of components
The main role in this quasi-crisis was played, oddly enough, by the shortage of components, and the shortage of semiconductors occupied a special position. Against this background, growth at first slowed down a lot, and then stopped altogether, because manufacturers had to raise prices quite a lot.
True, this applies only to Dell, HP, because Lenovo Group has its own branch of the production of computer components, which made it possible to take this blow more gently, and in some places even to avoid shocks.
This is of course the main question of any competent investor, because financiers are those people who professionally try to look into the future. It is rather difficult to answer it, because there are two factors at work. So, on the one hand, July-October is the period during which families traditionally renew their “hardware”. Such dynamics is primarily due to the fact that schoolchildren and students are preparing for the new academic year, and retailers in this regard give the population huge discounts.
In addition, after the July-October period, almost immediately comes the time of pre-holiday preparations and Black Friday, which is characterized by an increased demand for everything in general, including computer equipment.
But on the other hand, such consumer behavior is just an example of the traditional accumulation of demand. That is, everyone endures for a whole year, and then at one time they buy these goods. Now, we have observed increased demand throughout the year and there can be no talk of any accumulation.