PC SALES COULD BE REJECTED IN 2020 DUE TO CORONAVIRUS, SAYS IDC REPORT
The coronavirus eruption could result in at least a 3.3% down and as high as a 9% dip in the vastness of PCs that will ship globally this year, according to research firm Canalys. PC shipments will below, and the impact of coronavirus the shipment low between 10.1% to 20.6% in Q1 2020, the firm estimated. The effect will carry on see in Q2 when the shipments are expected to down in the middle of 8.9% (best case scenario, as per Canalys) and 23.4% (worst case scenario), it said. In the best-case event, the discharge would mean 390 million units will ship in 2020, down 3.5% from 396 million last year. The worst-case make a deeper dent, stating that about 362 million units will ship this year, down 8.9% from last year. Talented server traders aren't talking, but IDC says that limited supplies of a variety of IT devices will be short due to the coronavirus. With virtually all of China shutdown and under quarantine effect of coronavirus, the Chinese IT hardware market will suffer a short-term but significant result in the first quarter due to demand not being met. While the foreign result is not inevitable, it does have the probable to spill over into other markets. IDC believes the effect will be mainly confined to the first quarter of this year and gradually fade in the second quarter. PCs and smartphones will take a much higher hit than server hardware while emerging technologies like AI and IoT will suffer a minimal result. Because Wuhan, the core of the sickness, is mainly a hub for display makers, anything with a display could feel the pinch. That's nice, but it didn't reply to the question, and AMD didn't answer at all as of this writing. However, I think I know why. If there is one city where publicly merchandise companies walk on eggshells, it's anything having to do with the financial result. They aren't going to say anything publicly unless they have to.
Nvidia did own up to potentially result in its quarterly earnings report last week, which is pretty much had to since this was a financial filing. It said it expects to take a $100 million hit in revenue next quarter due to the result of the coronavirus outbreak.
We see the ultimate reaction of the coronavirus is complex to estimate, the company has reduced its income outlook for the first quarter of fiscal 2021 by $100 million to account for its potential reaction.
Intel had already reported Q1 earnings before the virus took off, so if it feels any result, it will be disclosed when it reports Q2 numbers on April 23. AMD has also early reported Q1 numbers and reports Q2 sales on April 28. The good news is the semiconductor industry mostly appears to have escaped a direct hit because a lot of manufacturing is done outside of China, notes market research firm Media. Intel has fabs worldwide, with critical building in Arizona. AMD uses Globalfoundries, which has in Germany and New York. Nvidia uses TSMC in Taiwan, which may explain its result.
Server vendors non-committal
Server vendors didn't have much to say, either, but they haven't circulated quarterly numbers yet. The period between when their quarter closes and when the report is known as the quiet period, and they get very silent during that time. in this situation Dell, which describe on February 27, said this:
We judge the report on our trade operations and are assessing all choice and mitigation ideas to help ensure our provide chain remains operational, and we're meeting the client's requirements. While the situation continues to evolve, our top priority is ensuring the health and safety of our employees and communities. We will continue to monitor the circumstance closely and calibrate as needed.
HPE broadcast on February 20, 2020, and had a little more to say on the subject.
Nearly event and are in the non-stop effect of coronavirus the distributor and also our connection operation partners at H3C, to grasp any opinion they are experiencing and keep down the effects on our client. This is a developing situation, with governments and health authorities taking actions to protect the public in response to real-time developments. HPE has a large, global supply chain and robust business continuity plans in place to mitigate disruptions that may be caused by the coronavirus, meet customer demands, and protect our team members. "
Supermicro, the Fremont-based white-box vendor very famous with the wide-ranging trader, reported its quarterly earnings on February 6 and made no mention of coronavirus in any form. It sent me this statement:
Headquartered in Silicon Valley, we run operations In the whole world with production in the United States, Europe, and Taiwan, which mitigates geographical danger to our supply chain. Based on the latest known information, we currently do not believe this will have a significant result on our production."
The coronavirus infection rate seems to be much faster than that of SARS. I'm sure many HEXUS readers are keeping an eye on the spread of the coronavirus for personal reasons, but it has the potential to disrupt PC components supplies in a big way too.
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