The International Data Corporation (IDC) worldwide quarterly personal computer advice tracker reports that global PC shipments declined by 29% in the first quarter of 2023. The decline followed a 28.1% drop in the fourth quarter of 2022.
Reports reveal that shipments of personal computers plunged in the first quarter due to weak demand, excess inventory, and concerns about macroeconomic conditions.
IDC disclosed that the drop brought shipments in line with levels last seen before demand soared during the pandemic, as lockdowns led employees and students to upgrade their machines for remote work and school. The decline in sales signaled the end of Covid driven era as regards remote work.
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The giant tech company is reported to have recorded the biggest shipment drops during the first quarter of 2023, as its numbers were down 40.5 percent from the same period a year ago. In February, Apple reported that sales of its Mac computers which had boomed during the wave of working from home during the pandemic, declined by 29 percent year-on-year to $7.7 billion in their most recent quarter.
Also, tech company, Lenovo shipped the most PC in the last quarter followed by Dell, as they recorded drops of more than 30 percent, while HP was down 24.2 percent, leaving no major brand spared from the decline.
The IDC disclosed that the pause in growth and demand is giving the supply chain some room to make changes as many factories begin to explore production options outside China. It also stated that PC makers are also rejigging their plans for the remainder of the year and have begun to pull in orders for Chromebooks due to an expected increase in licensing costs later this year.
Meanwhile, the research manager for IDC’s mobility and consumed device trackers Jitesh Ubrani, disclosed that channel inventory for PCs is still above the healthy four to the six-week range, and even with heavy discounting, inventory is expected to remain elevated through mid-year and potentially into the third quarter of this year as well.
In the near term, the IDC predicts that PC shipments are likely to suffer while growth is expected after 2023, citing improvement in the global economy and possibly from consumers who are considering upgrading to Windows 11.
Also, analysts at IDC expect that by 2024, an aging install base will start coming for refresh. They state that if the economy is trending upward by then, there should be a significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks and businesses move to Windows 11.
Concerns over slowdowns in major economies remain with recent tumult in the banking sector worsening worries that runway inflation and tight monetary policy would hamper growth and financial investments.
Worldwide personal computer shipments fell 29% year-over-year in the first quarter, as a pandemic-era sales surge lost pace and the economic outlook grew increasingly uncertain. A new report from market research firm IDC shows that Apple has been hit particularly hard, with Mac shipments slumping 40.5% in the first three months of the year. A Bloomberg Intelligence analyst said Apple’s PC unit is particularly exposed to a tougher consumer market as well as comparisons to last year’s robust sales.
Lenovo and Dell saw shipments drop by more than 30% while HP registered a 24% fall. IDC says an improving economy and the replacement of aging PCs could lead to a market rebound in 2024. (LinkedIn News)