OEMs give up on Chromebooks due to Components Shortage

It’s no secret the Chromebook market is ailing, but what’s the real reason behind it? According to a recent report by IDC, Chromebook shipments dropped nearly 30% globally in the second quarter of 2017. What’s more is that the market share of the OS is declining, with Google’s OS falling to the fourth position in the worldwide OS market in Q2 2017.

A few months back, everyone was talking about Chromebooks and how they were destined to take market share from Windows and Mac OS. And today, nobody is talking about Chromebooks. Why has this happened?  The simple answer is that Chromebooks are still a niche product and, in the end, vendors are not interested in making them. Look at what’s happened with Windows phones, for example: Microsoft has discontinued the Nokia-branded ones and is concentrating on the Microsoft-branded ones. Similarly, Acer and HP have given up on Chromebooks. And it’s not as if they can’t make them. Google does not have a monopoly on the device and can ship millions of them into the market. With the components shortage, there is little incentive

Samsung, the world’s top-selling Android OEM in 2015, has announced that it will be exiting the Chromebook market due to the shortages of components. As a result, Samsung’s Chromebooks will not be selling in the United States from this point forward. Read more about pc shortage 2024 and let us know what you think.

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  • Experts anticipate that Google’s Chromebook sales are set to plummet, indicating that the company’s future is bleak.
  • The big drop in sales will reportedly be driven by a massive scarcity of building components.
  • OEMs will prefer Windows OS computers in these difficult times because they represent the more profitable side of the market.
  • Devices that run the Windows operating system will be even more in demand with the next Microsoft OS.
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Despite the fact that Chromebooks and Windows Laptops, as well as all portable devices and PCs, saw a significant increase during the pandemic, widespread component shortages are driving laptop OEMs to choose their preferred platform.

It’s worth noting that 12.3 million Chromebooks were shipped in the second quarter of 2024, representing a tremendous 68.6 percent YoY sales gain for the company.

All of this is set to change, unfortunately for Google, due to component shortages similar to those observed in the production of consoles like the Xbox Series X/S and Playstation 5.

OEMs are only able to power up a certain number of computers.

Other major players in the industry, such as Lenovo, have reported that due to component shortages, such as RAM and laptop panel driver IC, they have supplied 30-40% fewer machines.

As you can see, these supply chain restrictions are costing huge businesses a lot of money, in the billions of dollars.

As a result, PC makers are beginning to prioritize manufacturing lines in favor of the more profitable Windows PCs, putting Chromebooks on the back burner.

This is a major setback for HP, as Chromebooks account for 20% of the company’s portfolio.

According to senior research analyst Anuroopa Nataraj of IDC, “experts at IDC have noted this reduction and forecast the transition in the market.”

Given the persistent component shortages, vendors have started prioritizing higher margin Windows laptops over Chromebooks, which are still in strong demand and even on backlog for many education orders.

Of course, the competition has intensified with the impending release of Windows 11, which is expected to spark a replacement cycle for older Windows laptops that are unable to run the OS.

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Furthermore, Google is likely to make a significant investment in the business sector this year. According to analysts, a considerable focus on luring small enterprises with updated services is expected.

They’re referring to Google Workspace’s new individual membership tier as well as discounts on CloudReady licenses for repurposing outdated PCs for deployment alongside existing Chromebook fleets.

The PC OS race is set to be the most intensely contested it has been in a long time, with Apple continuously striving to push its M1 success into the commercial sphere and Microsoft introducing Windows 11 later this year.

What are your thoughts on the situation? Let us know what you think in the comments area below.

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At the end of March, news broke that Acer was pulling the plug on its plans to build Chrome OS devices and instead focusing on selling laptops and other products, like its Iconia family of Windows-based devices. Two weeks later, HP announced the same would happen with its Chromebook business. A couple of days after that, ASUS said it was “implementing changes to its product portfolio in an effort to accelerate the sales of its Chromebook range”.. Read more about dell parts shortage 2024 and let us know what you think.

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Written by Vaibhav Sharda