(San Francisco) Global PC sales slumped earlier this year, falling to pre-pandemic levels on a sharp drop in demand, two studies released Sunday and Monday showed.
Posted at 3:05 p.m
According to IDC, fewer than 57 million PCs were sold worldwide in the first quarter, down 29% from the same period in 2022.
It’s also a lot down from the 59.2 million devices sold in early 2019 and the 60.6 million from January to March 2018.
IDC on Sunday cited “weak” demand, “excess” inventories and a “deteriorating” macroeconomic climate as the main reasons for the decline.
“Demand remains subdued across all categories, particularly given the continued rate hikes in the U.S., Europe and other markets where curbing inflation is a top priority,” noted Ishan analyst Dutt in a Canalys news release on Monday.
Apple saw the most dramatic drop: Computer sales in the first quarter fell 46% year over year to 4 million units sold, according to Canalys. The California giant ranks fourth in terms of market share behind Lenovo, HP and Dell and just ahead of Asus.
The brands therefore all have large stocks. “Despite the sharp price cuts, stores and manufacturers will keep inventories high through the middle of the year and possibly into the third quarter,” said Jitesh Ubrani, research director at IDC.
However, the company believes this “pause in growth and demand” could give companies some time to try to reduce their reliance on factories in China amid significant tensions between Washington and Beijing.
According to Canalys and IDC, the PC market is expected to recover in 2024. Analysts count on the economic recovery, the switch to the Windows 11 operating system and the need to update outdated devices.