Global PC shipments continue to decline in Q2 2023 due to weak demand and shifting budgetary priorities, according to IDC Tracker

NEEDHAM, Mass., July 10, 2023 Global PC shipments decreased 13.4% year-over-year during the second quarter of 2023 (2Q23), according to preliminary findings from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. This was the sixth consecutive quarter of contraction caused 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 performance, the market performed better than forecast for the quarter.

Weak overall demand meant that inventory levels remained above the norm for longer than expected. This includes finished systems at the channel level, as well as the supply chain. So far, no PC manufacturer has been immune to the challenges presented by the market. With the exception of Apple and HP Inc., all leading companies posted 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 inventory oversupply over the past year and is finally approaching normalized inventory levels, allowing its growth rate to shine through this recession.

“The high inventory of channels and components is once again dragging the market down,” said Jitesh Ubrani, research manager for Mobility and Consumer Device Trackers at IDC. “And while these issues are slowly easing, many component vendors continue to offer cut prices in an effort to clean up their inventory although PC makers and outlets are still cautious about new systems due to reduced demand.”

“The roller coaster of supply and demand that the PC industry has faced over the past five years has been extremely challenging,” said Ryan Reith, group vice president for Client Device Trackers at IDC. “Companies don’t want to be caught in a supply shortage like in 2020 and 2021, but at the same time, many seem reluctant to take the big bet on a market rebound. On the consumer side, we are seeing a return to habits pre-pandemic where computing needs are shared across multiple devices and we strongly believe that consumer wallets will favor smartphones over the PC. From a business perspective, workforce reduction (for many large companies) and the introduction of only generative AI add more confusion about where to put an already tight budget.”

Notes:

-Some IDC estimates ahead of financial earnings reports. All company data is reported by calendar period.

-Shipments include shipments to distribution channels or end users. OEM sales are counted under the company/brand under which they are sold.

-Traditional PCs include desktops, notebooks, and workstations and do not include tablets or x86 servers. Detachable tablets and slate tablets are part of the Personal Computing Device Tracker but are not covered in this press release.

IDC’s Worldwide Quarterly Personal Computing Device Tracker collects detailed market data in over 90 countries. The research includes, among other data, the analysis of historical and forward-looking trends.

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International Data Corporation (IDC) is the leading global provider of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets. With more than 1,300 analysts worldwide, IDC provides global, regional and local expertise on IT technology, benchmarking and procurement, industry opportunities and trends in more than 110 countries. IDC’s insights and analytics help IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading technology media, data and marketing services company. For more information about IDC, visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC blog for industry news and insights.

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