New Tariffs Will 'Slow Down’ US PC Sales: Solution Providers, Analyst
'The addition of tariffs further hurts businesses, forcing them to make decisions that weigh the potential of security issues from not upgrading against the economic realities of not being able to afford to do so,' said Jason Slagle, president of CNWR Inc., a Toledo, Ohio-based Lenovo Silver partner.
“This will definitely slow down sales,” one large channel PC reseller who works with Dell Technologies and Lenovo told CRN via email. “We’ve seen pricing increases already prior to these tariffs, so I can’t imagine what they will be over the next few months.”
Jason Slagle, president of CNWR Inc., a Toledo, Ohio-based Lenovo Silver partner, said the increased costs will cause companies to delay needed improvements to their technology, which spills over into productivity and security.
“When you work with small businesses that are attempting to balance their smaller IT budgets against necessary updates required by changes to technology, like the end of support for Windows 10, it becomes a challenge,” Slagle said in an email. “The addition of tariffs further hurts businesses, forcing them to make decisions that weigh the potential of security issues from not upgrading against the economic realities of not being able to afford to do so.”
One analyst at market research firm Gartner told CRN that the tariffs would have a definite impact.
“With around 75 percent of PCs manufactured in China, the tariffs would lead to increased costs for distributors and retailers, who are likely to pass these costs down to business and consumers,” Ranjit Atwal, senior research director at Gartner, told CRN. “This would lead to higher PC prices, reducing demand and overall market spending due to the price sensitivity of PCs, while also delaying the Windows 11 hardware refresh.”
Atwal said manufacturers may attempt to mitigate the impact by boosting inventories and shifting production to non-tariffed countries in the long run, but said that’s assuming the tariffs hold at 25 percent on goods imported from Canada and Mexico and an increase of 10 percent on goods imported from China.
“The U.S. PC market could face significant disruptions,” he said.
In a sign of how quickly events are moving, the Trump administration on Monday delayed 25 percent tariffs on Mexico after negotiations.
Three weeks ago, Gartner researchers found that PC shipments increased 1.4 percent in the fourth quarter and 1.3 percent worldwide, the fifth consecutive quarter of sustained growth, as PC shipments reached 245.3 million units in 2024. At the time, Atwal said he expected the market to pick up and see solid growth in 2025.
During earnings calls with analysts since the November election, Dell Technologies, Lenovo and HP have each expressed confidence that their organizations had supply chains that are robust enough to navigate tariffs, should they happen.
Atwal said tariffs may leave consumers and businesses with fewer choices and the market with increased demand for lower-value devices.
“The overall effect would likely be a decrease in product availability and variety, alongside a shift in preferences towards less expensive models,” he said. “The timing and duration of the tariffs as well as international responses will further influence the market dynamics.”