IDC: PC vendors and end-users preparing for impact of tariffs

While PC shipments grew 4.9% during the first quarter of 2025 compared to the prior year, tariffs could impact these figures for the rest of the year.

While the US has announced an exemption on smartphones, computers and some other electronic devices from reciprocal tariffs, there is still a lot of uncertainties in the market from vendors, resellers, distributors as well as customers.

The continuous tariff announcements in the first two weeks of April alone have had a huge impact on the global economy, with some vendors experiencing heavy losses. But with the latest exemption plus a 90-day period to delay the reciprocal tariffs, many will be looking to make the most of the situation.

But here’s the thing. President Donald Trump stated that he will still apply tariffs to phones, computers and popular consumer electronics eventually despite the initial exemption announcement. So, the question now is, how can PC, phone and other IT component vendors and distributors plan their supply chain?

CRN Asia caught up with some distributors and resellers in the region, who are expecting to be impacted by the tariffs. Speaking to CRN Asia in the condition of anonymity, most of the distributors and resellers in the region also feel it's still too early for them to evaluate how much of an impact there will be eventually. Many are hoping to work together with vendors and customers to deal with the situation and achieve a winnable solution.

Interestingly, some also feel the tariffs have already impacted potential sales in the region. This includes the PC refresh cycle which companies are going through right now. According to IDC’s Worldwide Quarterly Personal Computing Device Tracker report, PC shipments grew 4.9% during the first quarter of 2025 compared to the prior year, with global volumes reaching 63.2 million shipments. However, these figures will most likely be much different for the remaining of 2025, especially with vendors looking at the best ways to cater to the market demand while managing the tariffs.

“The market is clearly showing some level of pull-in in the first quarter this year as both vendors and end-users brace for the impact of US tariffs. In a first quarter still relatively untouched by tariffs, the entire ecosystem attempted to accelerate the pace of deliveries to avoid the first round of US tariffs and expected volatility for the remainder of the year,” said Jean Philippe Bouchard, research vice-president with IDC's Worldwide Mobile Device Trackers.

For Bouchard, while commercial demand remained strong in the first quarter, the new round of US tariffs announced could have a direct inflationary impact on the PC market that could result in delayed IT spending for the remainder of the year. Even the 90 days pause in the retaliatory tariff hikes is only going to make it harder for businesses, vendors and distributors to have strong business plans for the rest of the year.

The reality is businesses will need to start making decisions soon, especially with the of support for Windows 10 fast approaching. The demand for AI PCs, while looking strong, may now be something businesses reconsider as well, given the change of pricing should tariffs be enforced on devices in the future.

Ryan Reith, group vice president with IDC's Worldwide Device Trackers believes that while many are still unpacking the details from the tariff announcement, it’s safe to say most are reevaluating what the following months will look like.

“So far, our supply chain checks haven’t shown any drastic shifts, but this isn’t surprising as it’s almost too volatile to make drastic business decisions. Companies are undoubtedly evaluating everything from inventory on hand, capacity to manufacture by location, possible reroute opportunities to lower import tariffs, and for some, their deal discussions with the US administration. When it comes to hardware like PCs and similar devices, we still maintain the view that most (if not all) price increases will get passed directly to the consumer,” said Reith.

In Q1 2025, Lenovo recorded a 10.8% growth from the previous year with over 15.2 million units sold, commanding a 24.1% market share. While Lenovo currently has laptop manufacturing facilities spread across the globe, any changes to tariffs will surely have an impact on their supply chain. HP Inc and Dell Technologies also recorded increased sales in Q1 2025, commanding a market share of 20.2% and 15.1% respectively.

Apple laptops witnessed a 14.1% growth in Q1, with 5.5 million devices soon. With most of Apple devices manufactured in China, the exemption in tariffs would definitely be a huge a relief. In fact, Apple witnessed a surge in sales of its devices just as the tariffs were announced as users were hoping to get their hands on devices before the change pricing from the reciprocal tariffs.