Global Shipments of PCs Falls by 29 Percent in Q1 2023; Apple Leads With 40% YoY Loss

Traditional PCs saw a 29 percent YoY drop in global shipments during the first quarter of 2023, as per a report by market research firm, International Data Corporation (IDC). The market research firm recorded that global shipments stood at 56.9 million, compared to 80.2 million during the same quarter the previous year.

Do note that the report implies desktops, notebooks, and workstations only. It does not include tablets or x86 servers, detachable tablets, and slate tablets.

The top five traditional PC companies, as per the report, are Lenovo, HP, Dell Technologies, Apple, and ASUS. While miscellaneous companies had 14.7 million shipments, Lenovo and HP had the next highest on the list at 12.7 million and 12.0 million, respectively. They were followed by Dell, Apple, and Asus.

As per the report, Apple suffered the maximum losses at a 40.5 percent reduction in sales. The company reported 4.1 million shipments this quarter, compared to 6.9 million shipments in the same quarter the previous year.

The reduction in sales can be credited to weak demand, excess inventory, and a worsening macroeconomic climate, as per the market research firm. While the results highlighted the increase in demand during COVID times, they were also surprisingly lower than in pre-COVID times.

Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers adds, “Though channel inventory has depleted in the last few months, it’s still well above the healthy four to six week range. Even with heavy discounting, channels, and PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter.”

The company is optimistic that things can take an upwards turn in the coming days. As the economy improves towards the end of the year and people want to upgrade to Windows 11, sales can also be expected to improve.

“By 2024, an aging installed base will start coming up for refresh,” said Linn Huang, research vice president, Devices and Displays at IDC. “If the economy is trending upwards by then, we expect significant market upside as consumers look to refresh, schools seek to replace worn down Chromebooks, and businesses move to Windows 11. If recession in key markets drags on into next year, recovery could be a slog.”

Source: IDC