Worldwide PC shipments saw a massive drop of 29-33% year-over-year (YoY) in the first quarter of 2023, according to estimates from Canalys and IDC. All major brands were impacted, with Apple experiencing a drop of over 40% in shipments.
The PC market has been struggling for months, and the latest figures show that the situation has just worsened. The YoY fall in global computer shipments by as much as 33% represents a sharper drop than during the holiday period.
This time, no major brands managed to avoid the downturn. Second-placed HP experienced a relatively mild 24% drop in shipments, while fourth-placed Apple faced the most significant decline, with shipments dropping by over 40%. ASUS, Dell, and Lenovo all saw a roughly 30% hit.
The reasons for this decline may seem familiar. Customers have been hesitant to purchase PCs in a turbulent economy with rampant inflation, and the remote work boom during the pandemic is still tapering off. People either cannot afford new machines or are satisfied with their current devices.
There is no explanation for Apple’s struggles compared to its peers, but the company generally targets the high-end market, which makes it more susceptible to poor economic conditions. TechCrunch also highlighted that Apple’s transition to in-house chips helped it avoid the difficulties that Windows vendors have faced in recent years, but that the honeymoon period may have ended.
Despite these setbacks, analysts remain optimistic. Canalys predicts that this will be the worst decline the PC market will face in 2023, with both research groups expecting recovery as early as the second half of the year. Aging computers will require upgrades, including Chromebooks in schools, while businesses will transition to Windows 11 systems. IDC also views the slowdown as an opportunity for manufacturers to shift some production outside of China.
However, caution remains. IDC warns that if recessions persist into 2024, the PC industry could face a prolonged “slog”. While the steepest declines may have passed, the market’s recovery could take an extended period.
As a result, brands may choose to play it safe with computers that they know are likely to sell, rather than experiment with unconventional designs.