Covid 19 coronavirus: Businesses face long wait for laptops, Ministry of Education updates on mega-order

If you want to buy a laptop, you might not be able to get your first, second or even third choice - at least not unless you're willing to wait two months or more.

Supply is tight after the lockdown in China - where most laptops are assembled - and that's stretching order times, even as many factories have reopened over the past couple of weeks.

Gary Bigwood, who recently shifted from running NZ's largest IT distributor (Ingram Micro), to the sector's largest independent retailer (PBTech), tells the Herald, "It does vary by manufacturer and even by product line, but historically a typical lead-time would be four weeks, and we are frequently now seeing eight to 10 weeks and even longer on some product lines.

"However, we are placing regular orders so the deliveries are also happening on a regular basis to keep stock levels healthy. In addition to the 20,000+ laptops already in stock, and around 10,000 tablets, there are already another 20,000+ laptops being built or in transit to us already."

Asked for an example of a pain-point, the PBTech boss says customisable or configure-to-order laptops are talking longer to get to NZ.

"And we are seeing customers more often adjust their desired specification slightly - up or down - in order to get something now that is already in stock."

Bigwood says some 600 staff who would usually work in PB Tech's shops are now either working from home on phone, email and webchat support (made free for the lockdown) or in one of two stores temporarily converted to distribution centres for online orders.

Bigwood adds, "Talking with one of our leading vendors this morning, their manufacturing plants are back up to capacity in China, but the delays we are seeing are more to do with freighting the product. This will no doubt continue improving as more capacity comes online."

A spokesman for the Warehouse and Warehouse Stationery said, "We are currently experiencing higher than normal demand on certain products due to work and study from home requirements. Whilst some items may be out of stock for short periods of time.

• Covid19.govt.nz: The Government's official Covid-19 advisory website

For some, ordering online could be their best bet. For example, some MacBooks that are out-of-stock by retailers will ship in five to seven days if ordered direct from Apple online.

IDC New Zealand analyst Liam Landon says the closure of physical stores dampened consumer demand, which helped offset supply chain issues caused by factory closures across China, Indonesia and the Philippines (consumer electronics retail stores were closed during level 4 and will be during level 3 as well. On March 31, computers were deemed essential goods, allowing PBTech and others to start online sales).

Landon notes monitors have been hit as well. So remote workers tired of squinting at a tiny laptop screen could have to wait a while if they want to plug in larger display.

Ministry of Education the largest laptop buyer

Amid the Covid 19 outbreak Ministry of Education is partnering with the private sector in a bid to supply computers and internet connections to tens of thousands of children in low-income households.

The scope of the project was too large to be achieved within the alert level 4 lockdown timeframe. InternetNZ recently highlighted the 2018 Census figure that 111,000 households lack broadband. Even at the best of times, UFB network operator Chorus (which currently has most of its field force sidelined) has topped out at around 15,000 connections per month.

Late yesterday, a spokesperson updated, "Distribution of about 6700 internet routers to households is under way, with a total of 15,000 orders confirmed by suppliers. For these internet connections, we are initially prioritising NCEA learners from Decile 1-3 schools. ISPs have said they are confident about their supply sources.

"We are potentially facing supply issues with outdoor Wi-Fi equipment that is needed for some rural connectivity, as stock in New Zealand is very limited."

On the laptop front, in addition to about 10,000 computers being distributed by schools to students, more than 1250 internet-ready computers (Windows laptops and Chromebooks) have been shipped to students, with another 4500 landed in New Zealand and being prepared for shipping to students. NCEA students from Decile 1-3 schools are again the priority.

"We have about 1000 laptops awaiting shipment from overseas. The Ministry of Education is in discussions with local suppliers and MFAT about immediate possibilities for transport to improve speed of delivery from overseas,' the spokeswoman said.

"Another 10,000 laptops are being assembled for us in overseas factories, and we're advised there is a typical delay of about of week due to strong global demand."

As previously flagged, lower-tech channels are being used to plug the gap while the MoE waits for laptops and modems.

Televised learning is now being made available through TVNZ and Maori TV, and hard-packs are being sent out.

"As at Friday 17 April, about 88,000 hard packs had been distributed to homes, with thousands more in preparation," the MoE spokesperson said.