Global PC Shipments Continue to Decline in the Second Quarter of 2023 Due to Weak Demand and Shifting Budgetary Priorities,

Global PC shipments declined 13.4% year over year during the second quarter of 2023 (2Q23), according to preliminary results from the International Data Corporation (IDCWorldwide Quarterly Personal Computing Device Tracker. This was the sixth consecutive quarter of contraction brought on by macroeconomic headwinds, weak demand from both the consumer and commercial sectors, and a shift in IT budgets away from device purchases. Despite the poor showing, the market performed better than forecast for the quarter.

The overall weak demand has caused inventory levels to remain above normal for longer than expected. This includes finished systems at the channel level, as well as the supply chain. So far, no PC maker has been immune to the challenges presented by the market. Except for Apple and HP Inc., all the leading companies experienced double-digit declines during the quarter. But Apple benefited from a favorable year-over-year comparison as the company suffered supply issues during 2Q22 due to COVID-related shutdowns within the supply chain. Meanwhile, HP has faced an oversupply of inventory in the past year and is finally approaching normalized levels of inventory, allowing its growth rate to shine during this downturn.

“Elevated channel and component inventory are once again dragging down the market,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers. “And despite these issues slowly easing, many component suppliers continue to offer reduced pricing in an effort to clear their inventory though PC makers and channels are still cautious about new systems due to the reduced demand.”

“The roller coaster of supply and demand the PC industry has faced over the past five years has been extremely challenging,” said Ryan Reith, group vice president for IDC’s Client Device Trackers. “Companies don’t want to be caught with short supply like they were in 2020 and 2021, but at the same time, many seem hesitant to make the big bet on a market rebound. On the consumer side, we’re seeing a return to pre-pandemic habits where computing needs are shared across multiple devices, and we firmly believe the consumer wallet will favor smartphones over the PC. On the commercial side, workforce reductions (for many big companies) as well as the introduction of generative AI only add more confusion as to where to place an already reduced budget.”

Top 5 Companies, Worldwide Traditional PC Shipments, Market Share, and Year-Over-Year Growth, Q2 2023 (Preliminary results, shipments are in millions of units)
Company 2Q23 Shipments 2Q23 Market Share 2Q22 Shipments 2Q22 Market Share 2Q23/2Q22 Growth
1. Lenovo 14.2 23.1% 17.4 24.5% -18.4%
2. HP Inc. 13.4 21.8% 13.5 19.1% -0.8%
3. Dell Technologies 10.3 16.8% 13.2 18.6% -22.0%
4. Apple 5.3 8.6% 4.8 6.8% 10.3%
5. Acer Group 4.0 6.4% 4.9 6.9% -19.2%
Others 14.4 23.3% 17.2 24.2% -16.5%
Total 61.6 100.0% 71.1 100.0% -13.4%
Source: IDC Quarterly Personal Computing Device Tracker, July 10, 2023

Notes:

–    Some IDC estimates prior to financial earnings reports. Data for all companies are reported for calendar periods.

–    Shipments include shipments to distribution channels or end users. OEM sales are counted under the company/brand under which they are sold.

–    Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.

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