Surge in PC shipments boosts secondary market however tariffs could have bigger impact

Increase in notebook shipments and the impact of tariffs

Notebooks, including mobile workstations, experienced a 10% increase in shipments, reaching 49.4 million units. On the other hand, desktops, including desktop workstations, saw an 8% rise, with 13.3 million units shipped. This growth came as manufacturers rushed to fulfil orders before the tariffs took effect, thus boosting the primary market. However, the subsequent rounds of tariffs will likely impact the market’s growth trajectory for the rest of the year, with prices expected to rise.

Secondary market driven by supply and demand

The secondary market, which deals with used PCs, is also seeing an uptick. The higher prices of new devices, driven by tariffs, are expected to delay consumers' purchases of new computers. As a result, more devices are likely to enter the secondary market, providing better supply. However, this increase in availability may be short-lived as the tariffs continue to impact both supply and demand dynamics, ultimately leading to higher prices in the secondary market.

Windows 10 end-of-support and its role

One of the key challenges in the coming months will be the end of support for Windows 10 in October 2025. While businesses and consumers prepare for this transition, the rising costs of new PCs due to tariffs may slow down the momentum of these upgrades. Canalys’ March poll revealed that a significant portion of SMBs is unprepared for the Windows 10 EOS deadline. These delays may result in even higher prices when businesses eventually refresh their fleets, adding further pressure to an already strained market.

Long-term outlook for the secondary market

In the long term, the PC market will see more balance. However, this equilibrium will take years to achieve as the global supply chain diversifies away from China, with production shifting to countries like Vietnam, Thailand, and India. These countries are also facing tariffs, but their rates are relatively more competitive compared to China. Despite these challenges, the shift will help mitigate the impact of tariffs, though prices may still rise in the short term due to supply chain uncertainties.

Conclusion: secondary market growth amid tariff challenges

While tariffs and higher production costs pose challenges, the secondary PC market is likely to see better supply as consumers hold off on buying new devices. However, the increased demand for used computers could drive up prices, especially as businesses prepare for the Windows 10 end-of-support deadline. Supply chain diversification offers some hope for long-term stability, but the impact of tariffs will continue to influence both the primary and secondary markets for the foreseeable future.