Global PC shipments plummet in first quarter, Apple takes the biggest hit, says IDC

April 10 (Reuters) – Global shipments of personal computers (PCs) fell 29% in the first quarter of 2023 due to weak demand, excess inventory and a worsening macroeconomic climate, with Apple Inc taking the biggest hit, it said market research firm IDC.

In the report published on Sunday, International Data Corporation (IDC) said global PC shipments totaled 56.9 million in the first quarter of this year, down from 80.2 million in the same period last year.

Shipments increased a corresponding year-on-year decline of 28.1% in the last quarter of 2022.

Of the top five PC companies analyzed in the report, Apple’s first-quarter shipments had the biggest drop of 40.5% from the same period in 2022, with Dell Technologies Inc ( DELL.N ) second with a 31% drop .

Lenovo Group Ltd ( 0992.HK ), Asustek Computer Inc ( 2357.TW ) and HP Inc ( HPQ.N ) also faced declines in shipments, IDC said.

In February, Apple reported that sales of its Mac computers, which had boomed during the wave of working from home during the pandemic, fell 29% year-on-year to $7.7 billion in the latest quarter.

“The preliminary results also represented a coda to the era of covid-driven demand and at least a temporary return to pre-covid patterns. Shipment volume in Q1 2023 was noticeably lower than the 59.2 million units shipped in 1 . quarter 2019 and 60.6 million in Q1 2018,” IDC said.

“The pause in growth and demand also gives the supply chain some room to make changes as many factories begin to explore manufacturing options outside of China.”

Concerns about a slowdown in major economies remain, with recent turmoil in the banking sector exacerbating concerns that ongoing inflation and tight monetary policy will hamper growth and financial investment.

If the economy is trending upward by 2024, “we expect significant market upside as consumers look to renew, schools look to replace aging Chromebooks and businesses move to Windows 11,” said Linn Huang, research director of devices and displays at IDC.

“If the recession in key markets continues into next year, the recovery could be a blow.”

Reporting by Bharat Govind Gautam in Bengaluru; Editing by Varun HK

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