US tariffs drive PC gross sales increase

The most recent market knowledge from analyst Canalys has reported that PC shipments skilled a surge in first quarter of 2025 (Q1 2025), pushed by producers accelerating deliveries to the US in anticipation of preliminary tariff bulletins. Small and mid-sized organisations which have but to refresh their PCs earlier than 14 October, when mainstream help from Home windows 10 ends, could expertise a worth hike resulting from tariffs.

The analyst agency reported that complete shipments of desktops, notebooks and workstations grew 9.4% to 62.7 million models in Q1 2025. Pocket book shipments, which embody cell workstations, grew to 49.4 million models, up 10% in contrast with a yr in the past. Shipments of desktops rose 8% to 13.3 million models

Ishan Dutt, principal analyst at Canalys, which is now a part of Omdia, famous that each Lenovo and HP grew shipments to the US within the first quarter by round 20% and 13%, respectively. “This pre-emptive technique allowed producers and the channel to fill up forward of potential value will increase, boosting sell-in shipments regardless of in any other case steady end-user demand,” Dutt mentioned.

Canalys famous that the foremost PC makers started provide chain diversification throughout Trump’s first time period. It expects them to proceed shifting away from China in the direction of Vietnam, Thailand and India, regardless of these international locations additionally going through the imposition of tariffs.

Based on Canalys, by the top of 2025, most main PC producers are anticipated to have accomplished the shift of US-bound shipments out of China, aiming to boost provide chain resilience and mitigate the affect of tariffs. 

For example, HP CEO Enrique Lores acknowledged in the course of the firm’s newest quarterly earnings that 90% of the corporate’s merchandise bought within the US could be made exterior of China by the top of this yr. 

Through the 27 February earnings name for its quarterly outcomes, Jeff Clarke, chief working officer at Dell, was requested concerning the tariffs the US administration was imposing on China and the way that will have an effect on Dell. Based on the transcript of the earnings name posted on Searching for Alpha, Clarke responded saying that the corporate had constructed an industry-leading provide chain that’s globally various, agile and resilient that helps minimise the impacts of commerce laws and tariffs.

“We’ve taken our digital provide chain, our digital twins really, utilizing some AI modelling to have a look at each attainable situation that you may think to assist us perceive how we optimise our community and the way we try this within the least period of time,” he mentioned, warning that no matter tariff can’t be mitigated are seen as enter prices, which can require changes in costs.

When requested concerning the tariffs throughout Lenovo’s quarterly earnings name, the corporate’s chairman and CEO, Yuanqing Yang, claimed the US tariffs have been a bonus. Within the transcript of the earnings name posted on Searching for Alpha, he mentioned: “It’s not a drawback, however most likely a bonus for Lenovo.

“Now we have already constructed a really sturdy and a novel enterprise mannequin. We name it the ODM+ mannequin. We do each in-house manufacturing and outsourcing manufacturing. And we have now a world manufacturing footprint.” Yang mentioned Lenovo operates 30 manufacturing services in Argentina, Brazil, India, Japan, Hungary, Germany, Mexico and the US. It’s also constructing a brand new facility in Saudi Arabia. “In comparison with our competitors, we’re extra versatile and resilient to adapt to totally different eventualities.”

Because of this when confronted with surprising challenges, Lenovo mentioned it might transfer buyer orders between websites. The corporate’s provide chain resiliency is predicated on proudly owning the provision chain finish to finish. It has additionally put in place a geodiversity programme to allow sourcing of commodities from areas apart from China and Taiwan.

In a doc revealed in 2023 taking a look at ODM+, Lenovo mentioned: “As a part of Lenovo’s international/native mannequin, constructing gadgets domestically dramatically reduces the freight miles these merchandise incur, offering extra environment friendly and sustainable transportation choices.”

Though main manufacturing international locations have been focused with tariffs, Ben Yeh, senior analyst at Canalys, famous that their charges stay comparatively aggressive in contrast with China’s. “These international locations have proven a willingness to barter, elevating the likelihood that the tariffs could finally be lowered or waived, whereas China has responded swiftly with a brand new spherical of reciprocal tariffs. Because of this, manufacturing relocation plans are nonetheless ongoing and are unlikely to vary considerably earlier than additional implementation particulars are introduced,” he added.

The analyst agency warned that companies, particularly small and mid-sized organisations, might face some strain which will decelerate the transition away from Home windows 10 forward of the October 2025 end-of-support (EOS) date.

A Canalys ballot of PC resellers reported that 14% consider their small and mid-sized enterprise clients should not conscious of Home windows 10 finish of help, whereas an additional 21% mentioned their clients are conscious however don’t have any plans to improve.

“For patrons in these conditions, the delay in planning means they’re prone to face a better value setting when the time involves refresh their PC fleets,” Dutt added.

Canalys additionally predicted that the affect of tariffs on shopper demand shall be better, as buying a costlier PC will must be prioritised towards different spending classes going through worth will increase.