Market research firms, Canalys and IDC, reported that global shipments of personal computers (PCs) declined by 33% and 29%, respectively, in the first quarter of 2023.
Apple was hit the hardest, with a drop of over 40%, followed by Dell Technologies Inc. with a 31% fall. Other leading PC makers, Lenovo Group Ltd, Asustek Computer Inc, and HP Inc, also faced declines.
Weak demand, excess inventory, and a bleak economic outlook were cited as the main reasons for the drop in shipments, following a post-pandemic slowdown in consumer spending. Canalys analyst Ishan Dutt said that the issues that plagued the industry in the second half of 2022 had extended into the start of 2023.
The decline in demand and growth has given supply chains time to stabilize after a rocky two years, and companies are exploring production options outside of China, according to IDC. Both research firms predict that the market could start to recover later this year and gather momentum in 2024, assuming the economic outlook improves.
The data suggests that PC makers are set for another quarter of weak earnings, following a 2022 that saw their sales squeezed by the end of the pandemic-driven demand boom.
The sources for this piece include an article in Reuters.