Personal computer (PC) shipments worldwide decreased by about a third in the first quarter of 2023, with Apple Inc. suffering the greatest decline among the market leaders as the sector battles a post-pandemic slump in consumer spending.
Market research companies IDC and Canalys blamed the 29% and 33% decreases in shipments on sluggish demand, excess inventory, and a gloomy economic outlook in separate papers released on Monday.
According to Canalys analyst Ishan Dutt, “The majority of the challenges that afflicted the sector in the second part of last year have persisted into the start of 2023.”
Apple experienced the greatest reduction in Q1 shipments among the top five PC manufacturers examined in the survey. With a drop of 40.5% from the same quarter in 2022. Dell Technologies Inc. came in second with a drop of 31%. According to the IDC, shipments were down for HP Inc., Asustek Computer Inc., and Lenovo Group Ltd.
Apple revealed in February that sales of its Mac computers, which had soared during the pandemic’s surge of home-based employment. It had dropped 29% year over year to $7.7 billion in their most recent quarter.
The early findings also marked the end of the COVID-driven demand era and at least a brief return to pre-COVID tendencies. In comparison to Q1 2019’s 59.2 million devices delivered and Q1 2018’s 60.6 million, Q1 2023’s shipment volume was substantially lower, according to IDC.
While many manufacturers has start looking into manufacturing choices outside of China. The slowdown in growth and demand is also allowing the supply chain some chance to adjust.
There are still worries about slowdowns in major economies. Moreover recent turmoil in the banking industry has only heightened concerns about how tight monetary policy. And rogue inflation would affect economic growth and investment.
According to Linn Huang, research vice president, Devices and Displays at IDC, “we expect significant market upside as consumers look to refresh. Schools seek to replace worn-down Chromebooks, and enterprises transition to Windows 11” if the economy is heading up by 2024.
“Recovery could be a grind if recession in key areas goes on into next year.”
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