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JPR forecasts dramatic growth in PC hardware inventory and sales

by Mark Tyson on 14 July 2021, 13:11

Tags: AMD (NYSE:AMD), Intel (NASDAQ:INTC), NVIDIA (NASDAQ:NVDA)

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PC hardware market research specialist Jon Peddie Research (JPR) has just published its latest biannual Worldwide PC Gaming Hardware Market report, reviewing recent stats for laptops, desktops, PC DIY, and accessories. As per usual, the firm teases the contents inside its $8,250 report, with a press release featuring some juicy highlights. The headline JPR has picked to catch your attention this time around is that it reckons that the "PC gaming hardware market [is] set to recover from supply problems".

JPR sums up that in the past year, the PC gaming hardware market has "both flourished and suffered". An unusual set of circumstances means that parts makers and resellers have made abnormal profits, while damage has probably been inflicted on the market as gamers with average budgets are turned off by the outlays required to game on PC. Some of those put off will have spent their cash elsewhere – like on consoles, so will be lost to the PC market for a number of years. JPR warns, "new entrants are very important to the long-term health of any gaming platform".

Moving onto possible solutions to the PC gaming hardware problems we see now, JPR says that companies involved are "reviewing their Just-in-Time strategies and beginning to adopt Just-in-Case inventory levels". This won't have an immediate impact, as JPR expects the change to be over "the coming years," but in time it will result in "inventory and sales of high-end products to grow dramatically". One glimmer of light seen by JPR in current PC gaming hardware is in the ultrawide and 4K monitor market, with availability and pricing as good as or better than ever.

JPR president, Jon Peddie, summed up his thoughts on the state of the PC gaming hardware market by saying he expects manufacturers to aggressively stock High-End inventory levels to prevent a repeat of the GPU drought we have been experiencing. He rationalized that such graphics cards maintain MSRP well, can be sold as mid-range products even when outdated, and are thus not a big risk to overstock.



HEXUS Forums :: 6 Comments

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The issue is that many people have pushed purchases forward due to the pandemic. No doubt there will be additional sales,because of all the gamers who missed out due to miners,etc. However,as most people keep their parts for years,I am uncertain whether we can look at 2020 and 2021 sales,and be certain it will be extended to 2025. This is also in light of hopefully a better Coronavirus situation,ie,more people can now travel without being stuck at home. Many might want to spend their free cash on travelling more,to make up for this.
CAT-THE-FIFTH
The issue is that many people have pushed purchases forward due to the pandemic. No doubt there will be additional sales,because of all the gamers who missed out due to miners,etc. However,as most people keep their parts for years,I am uncertain whether we can look at 2020 and 2021 sales,and be certain it will be extended to 2025. This is also in light of hopefully a better Coronavirus situation,ie,more people can now travel without being stuck at home. Many might want to spend their free cash on travelling more,to make up for this.
Are you saying JPR is telling manufacturers to count their chickens before they've hatched!

On the other hand if reports like this lead to PC Hardware being made in excess of actual demand, prices can only come down! Which would be good for us hardware enthusiasts but eventual bad for the landfill.
Shock windows 11 creates a lot of e-waste only supporting 3-4 year old equipment & they predict an uptick in sales,lol must get my crystal ball polished.
kompukare
Are you saying JPR is telling manufacturers to count their chickens before they've hatched!

On the other hand if reports like this lead to PC Hardware being made in excess of actual demand, prices can only come down! Which would be good for us hardware enthusiasts but eventual bad for the landfill.

The issue is they are basing their future models on an exceptional period,where you had both mining and lots of people stuck indoors worldwide,bringing purchases forward,especially since all the money they normally would have spent,wasn't being spent. Also those who saved a lot of money from not needing to commute anymore. So people had more a want and means(especially with Furlough) to perhaps justify these extra expenditures(IIRC,I read about people spending it on consoles and PCs).

But going forward,I suspect there are enough people(me included) who really do want to go out more and do stuff,especially once we can get things under control. Plus the other issue,is whether all jobs under Furlough will be still there over the next 6 months or so(and there are concerns about inflation,as opposed to profit margin induced inflation),and you are starting to see companies lie Barclaycard clamp down on credit due to their own concerns. There is talk of a K shaped economic recovery.
Unless there's some text in the full report that we can't see, I don't see how JPR are forecasting dramatic growth, instead it looks like there's some left-over growth 21-22 (but not as much as the growth 20-21) and then it doesn't grow any further.

They also put a warning:
JPR
long-term growth is dependent on having products available and priced within reach of mass-market consumers

edit: ah, the dramatic growth isn't in PC hardware per se, it's only the high-end stuff.

JPR
inventory and sales of High-End products to grow dramatically in the coming years.