PC market deflating

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Analysts at IDC published the financials for Q1 2023 global PC sales, and results don’t look good. Even Apple, which usually holds its own, is deeply impacted with deliveries down 40.5% in the first quarter of 2023 over this time last year, which amounts to 2.8 million fewer Mac deliveries. All other large manufacturers are reporting similar news, though to a lesser extent, with decreases ranging from 24.2% for HP to 31% for Dell. Weak demand, excess inventory and an overcast macroeconomic climate are to blame for this nosedive, according to IDC. This long, slow decline hints at a market returning to its pre-pandemic course. Buyers are replacing their PCs less often, opting instead to use smart phones and other devices.

That said, PC sales should show signs of growth toward the end of the year with an expected improvement in the global economy and the current fleet’s upgrade to Windows 11. “By 2024, an aging installed base will start coming up for refresh,” said Linn Huang, research vice president, Devices and Displays at IDC. “If the economy is trending upwards by then, we expect significant market upside as consumers look to refresh, schools seek to replace worn down Chromebooks, and businesses move to Windows 11. If recession in key markets drags on into next year, recovery could be a slog.”

⇨ Ars Technica, Andrew Cunningham, “Analysts say Mac sales are down 40% as post-pandemic PC sales slump continues.”

2023-04-10