As you may know, the pandemic and the resulting constraint has spiked the demand for cheap, but fast enough, machinery. It is precisely for this reason that the world of Chromebooks has grown immensely in popularity and tablets have become a very popular device again. In the second case it was almost a resurrection of a “dead” range of products.
After all, it was a matter of equipping both students and employees of several companies around the world in a short period of time with machines that were cheap but decent enough for remote work.
But now that everything has normalized, that demand has of course started to fade. Which in turn led to the fact that the low-end processors, especially in the mobile world, experienced an abrupt drop in demand.
The demand for low-end processors has collapsed
Therefore, with the return to a more normal life, the demand for this type of product began to decline. The problem is, it suddenly fell and the industry doesn’t seem to have anticipated it.
After all, according to Mercury Research, the world of “budget” notebooks collapsed by around 18 million units in the last quarter of the year alone. The biggest drop ever in this market segment. Interestingly, as you may have noticed, that decline was not due to a lack of components, but rather a reaction of the market to the economic recovery.
Most affected, however, are processors from the Intel Celeron and AMD Athlon series.
All in all, that drop in demand matches the decline in demand for Chromebooks, which is down 52% last quarter and 37% year over year. However, tablets also decreased, albeit less, with a decrease of only 15%.