Question

Task: Read the following case study carefully and answer the questions
that follow.
The trend of work from home as a result of the pandemic has benefited the Indian
personal computer (PC) market with shipments during July-September hitting 3.4

million units, the highest since 2013. This has been on account of demand for e-
learning and remote working remaining strong.

According to IDC India, although the commercial segment had very few government
and education projects, the consumer segment recorded its biggest quarter ever with
2 million shipments, growing 41.7% year-on-year and 167.2% from Q2 2020.
During the April-June quarter as well the demand for PCs, which includes desktops,
notebooks, and workstations, had hit an all-time high with companies placing large
orders for employees to work from home (WFH) to ensure business continuity. The
phenomenon led to a whopping 105.5% year-on-year growth in notebook shipments
during Q2.
Schools and colleges continued to function virtually, leading to a surge in demand for
consumer notebooks, especially in large cities. Despite supply challenges, vendors
were able to stock up for the upcoming online festivals, IDC India said.
“However, the demand for notebook PCs remains much higher than the current
supply, which is likely to lead to another strong quarter of shipments in Q4 2020.
Apple shipments also grew 19.4% year-on-year as it ended its biggest quarter of
shipments in the country,” it added.
Going ahead, IDC India market analyst (PC devices), Bharath Shenoy said, “There is
still a lot of uncertainty if and when the schools and colleges will return to physical
classrooms at full strength. This is forcing students to manage all their learning
virtually. This demand is expected to stay strong as India remains under penetrated in
PCs. To add to this, the growing broadband connectivity in the country is making
online learning easier for students. Hence, this opportunity will continue to be
relevant for PC vendors for at least a few more quarters”.

Note: A quarter is a three-month period on a company's financial calendar that acts as
a basis for periodic financial reports and the paying of dividends. A quarter refers to
one-fourth of a year and is typically expressed as "Q1” for the first quarter, “Q2” for the
second quarter, and so forth.
Questions
1. State the reasons for increase in the PC market, the highest since 2013.

2. Why would there be a strong quarter of shipments in Q4 2020 for notebook
PCs?

3. When do you think there will be a change in the tremendous demand of PCs?
Explain.

Answer 1

Answer:

Schools and colleges continued to function virtually, leading to a surge in demand for consumer notebooks, especially in large cities. ... However, the demand for notebook PCs remains much higher than the current supply, which is likely to lead to another strong quarter of shipments in Q4 2020 (Oct-Dec).