Global PC shipment decline continues as Apple, Lenovo feel the pinch

Global PC shipments dipped by nearly one-third in the first quarter of 2023, marking a continued decline on previous quarters amidst deteriorating economic conditions. 

Research from IDC showed that total shipments of PCs declined 29% in Q1 to 56.9 million units. IDC said that weak demand, excess inventory, and a “worsening macroeconomic climate” were all key contributing factors to the drop in shipments. 

The firm’s research also noted that shipment volume in Q1 2023 was “noticeably lower” compared to pre-pandemic levels.

More than 59 million units were shipped in Q1 2019 and 60.6 million were shipped in Q1 2018. 

Apple, Lenovo, Dell Technologies, and ASUS were among the worst-impacted firms by this precipitous decline in shipments.

Apple saw a 40.5% decline in the first quarter, bringing its total market share down to 7.2% compared to an 8.2% share in the same period last year. 

Lenovo and ASUS both experienced a 30.3% decline in shipments across the previous quarter while Dell shipments declined by 31%. 

The recent statistics paint a potentially concerning picture for Apple, which has typically weathered sluggish device growth in recent months. 

In the final quarter of last year, PC manufacturers saw a significant decline in shipments, with Dell experiencing a 37.2% decrease alongside notable dips for HP, ASUS, and Lenovo. Despite this, Apple shipment volumes dipped by just 2.1%.

IDC said that, despite sluggish sales and a bleak outlook for the coming quarter, this period presents an opportunity to give the supply chain “some room to make changes as many factories begin to explore production options outside China”. 

Additionally, IDC noted that PC makers have begun to pull in orders for Chromebooks due to an “expected increase in licensing costs later this year” and are expecting some growth movement as organisations begin shifting en-masse to Windows 11 later in the year. 

“PC shipments will likely suffer in the near term with a return to growth towards the end of the year with an expected improvement in the global economy and as the installed base begins to think about upgrading to Windows 11,” the consultancy said. 

Linn Huang, research vice president for devices and displays at IDC, said this upcoming refresh period could offer a reprieve for manufacturers, but this is heavily dependent on recovering economic conditions. 

“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,” he said. “If recession in key markets drags on into next year, recovery could be a slog.”