After the recovery in the PC market during the first two years of the pandemic, the global supply of computers went into negative dynamics. The decline in this market has been observed for four quarters in a row. According to IDC, global PC shipments fell 29% in the first quarter of 2023 compared to the same period last year. Canalys paints an even more alarming picture for the industry – the drop was 33%.
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Weak sales during the pre-New Year holidays led to the accumulation of a large volume of warehouse stocks of computers. And this trend is expected to continue at least until the third quarter. The fall in shipments last quarter was so significant that the indicator fell below the result for the first quarter of 2019. Thus, global shipments of PCs fell below pre-pandemic levels.
Such a sad situation on the market has several reasons at once. First, many people purchased new systems in 2020 and 2021 to adapt to work and study during a global pandemic. Laptops typically have a lifespan of 3 to 5 years, while desktop systems have an even longer lifespan of up to 8 years. So, for a few more years, it will not make sense for many consumers to upgrade their computers. Secondly, due to economic problems, people tend to save and postpone the purchase of expensive goods. As a result, according to Canalys, notebook shipments fell by 34% year-over-year, while desktop shipments fell by 28%.
Both IDC and Canalys say Apple’s computer shipments were hit the hardest, at 40.5% and 45.5%, respectively. The situation is not much better for other PC manufacturers that are among the top five market leaders by the end of the first quarter of 2023. The drop ranges from 24.1% at HP to 38.8% at Asus (according to Canalys).
Both analyst firms expect some improvement in the situation only at the end of this year or at the beginning of 2024, “if the economy is growing by then.” But if the recession in major markets drags on into next year, the recovery in the PC market will be delayed.
? Global PC shipments plummeted in Q1 2023, with Apple to be the hardest hit. ?
Top PC makers face weak demand, excess inventory, and a challenging economic outlook. Recovery could begin later this year, but analysts remain cautious.⚠️$AAPL $DELL $HPQ $LNVGY
— App Economy Insights (@EconomyApp) April 10, 2023
Source: techcrunch
