Global Shipmen Of PCs Drop 29% During Q1 2023; Apple Takes A Major Hit
A recent report from IDC (a market research firm) has revealed that the global shipment of PCs dropped by 29% during Q1 of 2023.
The reason behind this fall in demand for personal computers is a combination of weak demand and excess inventory. In addition, the macroeconomic climate has also deteriorated as of late, which is also effecting the sales of personal computers.
According to the research report, the company which took the biggest hit from this reduction in global PC shipments was Apple (APPL).
Global PC Shipments Recorded At 56.9 Million
As per the data from the International Data Corporation (IDC), the PC shipments during Q1 2023 were recorded at 56.9 million, while the numbers from the Q1 2022 were 80.2 million.
So when we compare the Q1 2022 results with the Q2 2023 results, it becomes clear that fewer PCs were sold during Q1 2023! And if we look at the YoY basis, the shipment of PCs declined by 28.1% during Q4 2022!
In total, around 5 PC companies were analyzed in the report, and all of them saw a drop in sales. The biggest hit was Apple which saw its shipments drop by 40.5% during the first quarter.
After that, the next company which took a major hit was Dell Technologies which reported a 31% drop. Similarly, the Lenovo Group (LNVGY) and HP Inc. also reported a drop in PC shipments.
If we look at Apple more closely, one of its major selling products is Mac computers. The sales of Apple's Mac computers declined by 29% on a YoY basis.
The results also reveal that the market is now temporarily returning to the patterns shown before COVID. Earlier, tech companies enjoyed an increase in demand mainly driven by the COVID pandemic.
This pause in demand and market growth will likely make its way into the supply chain as well. That's why it is highly likely that many factories will start looking at moving their production outside China.