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PC sales plunge 29% on weak demand

Global sales of personal computers have plummeted 29% compared to 2022 at the start of the year, due to weak demand due to the economic deterioration, as well as excess inventory in the distribution channel.

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PC sales plunge 29% on weak demand

Global sales of personal computers have plummeted 29% compared to 2022 at the start of the year, due to weak demand due to the economic deterioration, as well as excess inventory in the distribution channel.

In the first quarter of 2023, PC makers sold 56.9 million PCs, according to preliminary data from consulting firm IDC, which counts brand shipments to distributors, not final sales to consumers and businesses. For its part, the consultant Canalys estimates that shipments to the distribution channel stood at 54 million pieces of equipment, which represents a 33% year-on-year drop.

The personal computer industry is still suffering from a hangover from the explosion during the pandemic, when PC sales soared on the back of telecommuting and online classes.

In fact, the market has already chained four quarters with double-digit falls. In the last three months of 2022, traditionally a strong period due to the Christmas campaign, sales fell 28%, according to IDC figures.

What's more, the number of equipment that has left the manufacturers' warehouses is significantly below pre-Covid levels, since in the first quarter of 2019 just over 59 million equipment were sold.

IDC believes that the inventory problem will persist until the middle of the year or even until the third quarter, despite the deep discount policies that manufacturers and distributors are deploying to dispose of the accumulated stock of computers.

According to a Canalys survey, 39% of distributors have more than five weeks of inventory, while two in ten say they have equipment that has not been shipped for nine weeks or more.

The five big world manufacturers have suffered sharp falls in sales. The greatest setback is led by Apple which, according to IDC estimates, has sold 4.1 million units, which is 40.5% less than a year ago. The company is fourth in the ranking, with a market share of 7.2%.

The Chinese Lenovo continues to lead the world market with a 22.4% market share, although it suffered a drop in sales of more than 30%. HP, second in the ranking, has closed the gap this quarter, in which it holds a 21% share. Dell's sales fell 31%, while the Taiwanese Asus, fifth in the ranking, sold 30% less.

IDC forecasts that the market will continue to fall until the end of the year, when it anticipates some recovery linked to the expected improvement in the global economy. In 2024, the industry will recover a bullish cycle thanks, among other factors, to the renewal of equipment to adopt Microsoft's Windows 11 operating system.

For its part, Canalys believes that this first quarter will be the worst of 2023. The consultant estimates that the first signs of recovery will occur in the second half of the year, but they will not be significant until the last quarter. The firm defends that the foundations of the industry are solid in the long term.

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