PC Market in Asia Pacific Drops 16%, Slow Recovery Expected in 2024

The PC market in Asia Pacific, encompassing Japan and China, experienced a 16.1 percent decline in 2023, with shipments totaling 97.4 million units, IDC report said.

Lenovo (26.7 percent), HP (15.1 percent), Dell Technologies (9.8 percent), Asus (7.3 percent) and Acer (5.4 percent) are the leaders in PC industry in Asia Pacific during the year 2023.
PC market in Asia Pacific 2023 IDC reportInternational Data Corporation (IDC)’s Quarterly Personal Computing Devices Tracker, Q4 2023 said the PC market in Asia Pacific is anticipated to face sluggish recovery in 2024, facing challenges stemming from weak demand and a slow economic rebound.

Matthew Ong, Senior Market Analyst at IDC Asia Pacific, said the region saw a year-on-year decline in all quarters of 2023, attributed to dwindling demand across consumer and commercial segments of PC business. Ongoing economic uncertainties compounded by high inventory levels compelled market players to exercise caution in their shipments to prevent channel overstocking, particularly in the initial half of the year.

Consumer PC market bore the brunt of the downturn, witnessing a 17.4 percent decline to 48.5 million units.

Desktop PC shipments plummeted by 22 percent in 2023.

Consumer notebooks saw a 15.8 percent year-on-year drop in 2023. Factors such as inflation and rising interest rates contributed to weakened purchasing power, while shifts in consumer spending priorities further dampened demand.

Similarly, the commercial PC market experienced a 14.8 percent decrease, totaling 48.8 million units. Private sector enterprises adopted a conservative approach towards IT expenditure, leading to order reductions or delays in PC replacements amid unfavorable macroeconomic conditions. Moreover, public sector shipments witnessed a decline compared to previous years as pandemic-induced demand tapered off, resulting in fewer projects.

In 2024, PC shipments in Asia Pacific are forecasted to register 0.4 percent growth, reaching 97.8 million units. The PC market is expected to remain subdued in the first half of the year, with anticipations of gradual growth in the latter half, particularly in China and Japan.

IDC said economic recovery prospects in China are expected to stimulate PC purchases, while Japan may witness a surge in replacement demand for PCs procured during the 2019 spike before Windows 7 End of Support.

Maciek Gornicki, Senior Research Manager at IDC Asia Pacific, highlighted that although 2024 poses challenges for the PC industry, advancements in technologies such as on-device Artificial Intelligence (AI) and projected rebounds in consumer demand and commercial renewals could drive a 7.9 percent growth in 2025.

However, he cautioned that under economic uncertainties, the adoption of AI-enabled PCs and device replacements might occur gradually over the next few years. The PC market’s growth is likely to be fueled primarily by commercial refresh cycles, educational projects, and some recovery in consumer demand.

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