China’s PC and Tablet Markets Show Signs of Recovery in Q3 2023

The PC market in China displayed signs of recovery in the third quarter of 2023, marking a promising shift after facing a 16 percent year-on-year decline.
PC sales in China in Q3 2023PC shipments in China surged by 15 percent sequentially to reach 11 million units. Notably, desktops led the revival, experiencing a marginal 9 percent decrease to 3.4 million units. Meanwhile, notebook shipments dropped by 18 percent year-on-year to 7.8 million units, signaling persistent weakness in end-consumer demand.

Leading PC suppliers and their PC market share in China are: Lenovo (38 percent), HP (11 percent), Huawei (9 percent), Dell (9 percent), Asus (7 percent), and others (27 percent) in Q3 2023, Canalys said.

However, the tablet market sustained positive momentum, recording a 16 percent year-on-year growth to 7.4 million units, buoyed by seasonal promotions and the ongoing digitization in education and entertainment sectors.

Leading tablet suppliers and their market share in China are: Apple (31 percent), Huawei (24 percent), Xiaomi (11 percent), Honor (7 percent), Lenovo (6 percent), and others (21 percent) in Q3 2023, Canalys said.

Market Projections and Outlook

Canalys, a market research firm, projects an 18 percent year-end decline in Mainland China’s PC market (excluding tablets) for 2023. However, a modest 4 percent growth is forecasted for 2024, with the momentum anticipated to kick in by the second quarter of 2024. This resurgence is expected to ride on the recovery of the commercial sector, fueled by substantial IT investments from major enterprises in key industries.

Insights from Canalys

Emma Xu, an Analyst at Canalys, highlighted the marginal improvement in IT investment from enterprises, parallel to the broader economic recovery in China. She noted challenges faced by small and medium-sized businesses (SMBs) while identifying growth indicators in the public sectors and frontier industries with increasing demands for IT upgrades, particularly in AI solutions.

Emma Xu cited the central government’s economic discussion panel, which forecasts a shift in focus toward encouraging industrial upgrades in 2024, potentially favoring tech industries and vendors through advanced IT investments.

Market Leaders and Performance

Despite a 15 percent year-on-year decline in PC shipments, Lenovo maintained its top position in Q3 2023. HP secured the second spot with an 11 percent market share, leveraging its strengthened commercial product portfolio following the acquisition of Poly.

Huawei increased its market share despite a 5 percent drop in units shipped. Dell and Asus clinched the fourth and fifth positions, respectively, both witnessing a substantial 36 percent year-on-year decline.

Tablet Market Insights
Tablet sales in China in Q3 2023Canalys expects a 5 percent growth in the tablet market for 2023, reaching 28 million units before stabilizing in 2024. The continued trend of digitalization in learning and work environments drives the tablet market expansion, catering to various life scenarios like home, school, and business.

Emma Xu highlighted the persistent demand for smart products enhancing convenience and efficiency in Mainland China. Leading vendors focus on driving upgrades in specific user scenarios, such as parental education or creative work, while investing in comprehensive product ecosystems with interoperable functionalities.

Market Leaders in Tablet Segment

Apple and Huawei maintained their dominance, although Apple’s market share contracted to 31 percent from 38 percent. Huawei’s market share increased to 24 percent, driven by proactive marketing and channel promotion. Xiaomi saw growth, expanding its tablet market share from 7 percent in Q3 2022 to 11 percent. HONOR and Lenovo completed the top five but experienced declines in both market share and shipments.

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