A new report from market tracker Canalys shows that PC shipments in the first quarter grew at the fastest pace since the early pandemic days, as tech-savvy consumers rushed to stock up on devices—mainly sourced from Asian supply chains—ahead of today's tariff turmoil.
Laptop shipments jumped 9.4% to 62.7 million units in the first quarter, the fastest pace since 2Q21. Much of the surge in PC shipments was attributed to demand from the U.S. market ahead of tariffs, according to Bloomberg, citing the report.
"As the next round of higher tariffs on more countries goes into effect, both direct and indirect impacts threaten global PC market recovery and Windows 10 End of Support induced momentum," Canalys analysts said.
They noted that pulling forward demand will lead to a plunge in orders in the following quarters: "Subsequent quarters this year are likely to see a slowdown as inventory levels normalize and customers face higher prices."
Here are some PC companies with heavily exposed supply chains in China and Asia that ship to the U.S.—and will almost certainly be forced to hike prices:
Apple
Most Apple products (MacBooks, iPads, etc.) are assembled in China by Foxconn and Pegatron.
Shipped globally, with the U.S. as a key market.
HP (Hewlett-Packard)
- Manufactures many of its laptops and desktops in China through OEM partners like Quanta, Foxconn, and Compal.
Dell
- Uses Chinese manufacturing partners including Compal, Wistron, and Pegatron to produce laptops and PCs for global distribution.
Lenovo
- While headquartered in China, Lenovo manufactures extensively within the country and exports to the U.S. (also has U.S.-based facilities, but China remains key).
Acer
- A Taiwanese company, but much of its assembly and supply chain is based in China before shipping worldwide.
ASUS
- Another Taiwan-based company, with a strong Chinese manufacturing footprint for laptops and components.
Microsoft
- Surface devices are largely produced in China, through partners like Pegatron
For a glimpse into Apple's overseas manufacturing operations, the supply chain platform Sayari shows the latest Apple suppliers originate from India to Taiwan and Vietnam to China.
Here's more data from Bloomberg about Apple's complex supply chain throughout Asia.
A separate Bloomberg report noted at the start of the week that consumers "dashed" to stores nationwide ahead of the tariff deadlines.
Canalys analyst Ben Yeh noted that countries hit by Trump's tariff blitz "have shown a willingness to negotiate, raising the possibility that the tariffs may eventually be reduced or waived, while China has responded swiftly with a new round of reciprocal tariffs."
Wall Street analysts have been trying to determine the impact of the 104% China tariff on PC and smartphone prices, with some speculating that these devices could cost in the thousands.
Just as a reminder, last week we posed a question—and provided answers—for our readers: Will Hoarders Spark Run On Imported Goods? These Are The Most-Exposed US Retailers ...
