Canalys and IDC both estimate that global PC shipments fell between 29% and 33% year-over-year in the first quarter of 2023. That’s a sharper drop than we saw over the Christmas holidays. This time, in fact, none of the major brands got away with the worst. In second place, HP received the least losses, with a decline of about 24% in shipments, while in fourth place, Apple appears to have been hit more than any other company with a drop in shipments of more than 40%. ASUS, Dell, and Lenovo have seen their PC shipments drop by nearly 30%.
The explanation for the decline is well known. Customers are hesitant to buy computers in a turbulent economy where inflation is so high and remote work, since the pandemic, has been on a downward spiral. Most of them either can no longer afford new machines or have already purchased enough power that they don’t need to be replaced.
The two search companies did not comment on the significant drop in shipments witnessed by Apple, but it is known that the company targets the high-end market, which makes it more vulnerable to bad economic conditions. TechCrunch.com also indicates Apple’s move to its own processors has helped it avoid the tough times companies selling Windows PCs have had in recent years, but that “grace period” appears to be over.
But analysts, despite the sharp drop, are optimistic about the future. Canalys believes this is the worst decline the PC market will see in 2023, with both companies expecting it to recover in the second half of 2023. Older PCs will need to be upgraded, including Chromebooks in US schools while businesses will need them at some point. till then. Upgrade their systems to Windows 11. IDC also sees the slowdown as an opportunity for manufacturers to move some of their production outside of China. However, IDC warns that the PC industry could “sink” if the recession continues into 2024. And while it may not see such steep declines, it could take a long time for the market to recover.
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