The global personal computer (PC) market has been hit hard in the first quarter of 2023 due to weak demand, excess inventory, and a deteriorating macroeconomic climate. According to the International Data Corporation (IDC), global PC shipments have fallen by 29 percent in the first quarter of 2023 to a total of 56.9 million.
Apple Takes the Biggest Hit
Of the top five PC companies analysed in the report, Apple’s Q1 shipments saw the largest year-on-year drop of 40.5 percent, with Dell Technologies coming in second with a drop of 31 percent. Lenovo Group, Asustek Computer, and HP also faced declines in shipments.
In February, Apple reported that sales of its Mac computers had declined 29 percent year-on-year to $7.7 billion (roughly Rs. 63,083 crore) in their most recent quarter.
Factors Contributing To Weak Demand
The IDC report has stated that the weak demand is a result of a “return to pre-COVID patterns,” with shipment volume in Q1 2023 being noticeably lower than the 59.2 million units shipped in Q1 2019 and 60.6 million in Q1 2018.
The economic slowdown in major economies has also been a factor in the weak demand, with recent tumult in the banking sector exacerbating worries that runaway inflation and tight monetary policy would hamper growth and financial investments.
Outlook for Recovery
Looking ahead, IDC’s research vice president, Devices and Displays Linn Huang believes that if the economy is trending upwards by 2024, “we expect significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks, and businesses move to Windows 11.”
However, if the recession in key markets drags on into next year, Huang predicts that recovery could be a “slog.”