The latest IDC report said global PC shipments declined 13.4 percent to 61.6 million during the second quarter of 2023.
Leaders in PC business are Lenovo with shipment of 14.2 million, HP with 13.4 million, Dell Technologies with 10.3 million, Apple with 5.3 million, Acer Group with 4 million and others with 14.4 million in Q2 2023.
In terms of share, Lenovo with market share of 23.1 percent, HP with 21.8 percent, Dell Technologies with 16.8 percent, Apple with 8.6 percent, and Acer Group with 6.4 percent are the leaders in the PC business in Q2 2023.
Macroeconomic Headwinds and Weak Demand: The ongoing macroeconomic challenges and weak demand from both the consumer and commercial sectors have been major factors in the decline of PC shipments. Economic uncertainties and reduced consumer spending have led to a decrease in PC purchases.
Shift in IT Budgets: The shift in IT budgets away from device purchases has impacted the PC market. Companies are allocating their budgets towards other priorities such as cloud services, software development, and emerging technologies like artificial intelligence (AI). This trend has further suppressed demand for PCs.
Inventory Levels: Weak demand has resulted in elevated inventory levels, both at the channel level and within the supply chain. PC makers have struggled to clear their existing inventory, and this has impacted their ability to introduce new systems into the market.
Performance Compared to Forecasts: Although the PC market experienced a decline, it performed better than initially forecasted for the quarter. This indicates that the market conditions were not as severe as predicted, but challenges still persist.
Apple’s Performance: Apple was an exception to the overall decline, benefiting from a favorable year-over-year comparison. The company faced supply chain issues in the previous year due to COVID-related shutdowns, which impacted its sales. As a result, Apple’s improved performance in the current quarter is partially attributed to this rebound.
HP’s Inventory Management: HP Inc. faced an oversupply of inventory in the past year. However, it has been successful in approaching normalized inventory levels during this downturn. This has allowed HP to showcase a growth rate compared to other PC makers.
Component Suppliers and Pricing: Many component suppliers have resorted to reduced pricing to clear their excess inventory. However, despite lower prices, PC makers and channels remain cautious about introducing new systems due to reduced demand.
Consumer and Commercial Trends: On the consumer side, there is a shift back to pre-pandemic habits where computing needs are shared across multiple devices. This suggests that consumers are prioritizing smartphones over PCs. On the commercial side, workforce reductions and the introduction of generative AI have created confusion regarding budget allocation, further impacting PC sales.
Overall, the decline in global PC shipments during the second quarter of 2023 can be attributed to macroeconomic challenges, weak demand, shifting IT budgets, and elevated inventory levels. While some companies, like Apple and HP, have shown resilience or improvement, the PC market as a whole continues to face significant challenges in adapting to changing consumer and commercial preferences.