Global PC Shipments Continue to Decline in Q2 of 2023
July 12, 2023 | IDCEstimated reading time: 1 minute
Global PC shipments declined 13.4% year over year during the second quarter of 2023 (2Q23), according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. This was the sixth consecutive quarter of contraction brought on by macroeconomic headwinds, weak demand from both the consumer and commercial sectors, and a shift in IT budgets away from device purchases. Despite the poor showing, the market performed better than forecast for the quarter.
The overall weak demand has caused inventory levels to remain above normal for longer than expected. This includes finished systems at the channel level, as well as the supply chain. So far, no PC maker has been immune to the challenges presented by the market. Except for Apple and HP Inc., all the leading companies experienced double-digit declines during the quarter. But Apple benefited from a favorable year-over-year comparison as the company suffered supply issues during 2Q22 due to COVID-related shutdowns within the supply chain. Meanwhile, HP has faced an oversupply of inventory in the past year and is finally approaching normalized levels of inventory, allowing its growth rate to shine during this downturn.
"Elevated channel and component inventory are once again dragging down the market," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "And despite these issues slowly easing, many component suppliers continue to offer reduced pricing in an effort to clear their inventory though PC makers and channels are still cautious about new systems due to the reduced demand."
"The roller coaster of supply and demand the PC industry has faced over the past five years has been extremely challenging," said Ryan Reith, group vice president for IDC's Client Device Trackers. "Companies don't want to be caught with short supply like they were in 2020 and 2021, but at the same time, many seem hesitant to make the big bet on a market rebound. On the consumer side, we're seeing a return to pre-pandemic habits where computing needs are shared across multiple devices, and we firmly believe the consumer wallet will favor smartphones over the PC. On the commercial side, workforce reductions (for many big companies) as well as the introduction of generative AI only add more confusion as to where to place an already reduced budget."
Suggested Items
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.
Amphenol Reports Q1 2024 Results, Announces New Stock Repurchase Program
04/26/2024 | BUSINESS WIREAmphenol Corporation reported first quarter 2024 results. In addition, the Company is announcing a new three-year, $2 billion stock repurchase program.
Chinese Smartphone Market Maintains its Recovery Momentum at 6.5% Growth in 1Q24,
04/26/2024 | IDCAccording to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China smartphone shipments grew 6.5% year over year (YoY) to 69.3 million units in 1Q24.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Technica USA Presents Inaugural Supplier Alliance Award at IPC APEX EXPO 2024
04/24/2024 | Technica USADuring IPC APEX EXPO 2024, Technica USA took the opportunity to thank all of their supply partners that made the effort to join them for the exhibition in their booth, as well to all of our SMT partners that had their own booths, with the latest in automation and process technology.