An IPC survey of 101 companies found that 22 percent expect the coronavirus to result in fewer new product introductions this year.

Supply Shock

On average companies are reporting a five-week delay on receiving component shipments from their suppliers.  Around 50 percent of respondents don’t expect business to return to normal until July.

Delays on component shipments won’t necessarily deprive consumers of graphics cards, laptops, and other PC parts. Vendors will most likely prioritize selling their most popluar models.

Demand Shock 

It is too early to tell the depth of the demand shock but we suspect it will significant.  Global policymakers are ramping up a substantial amount of stimulus led by the Federal Reserve who cut its key policy interest rate to zero earlier this evening and committed to flooding the markets with trillions of dollars of liquidity to stabilize the financial system.

We expect the economy to turn up in the fall with markets turning a few months earlier signalling the recovery.