Apple is Among the Hardest To Be Hit With PC Shipments Slump

Apple is among the hardest to be hit with PC shipments slump. A recent report from IDC now suggests that the PC market contracted almost 30% in contrast to the year prior thus dropping just below pre-pandemic levels.

Apple PC Shipments Slump

Apple PC Shipments Slump

The PC market has had a really tough and rough first quarter, with both IDC and Canalys reporting that global shipments of desktops and laptops suffered a huge drop of around 30 percent in the first quarter of 2023 alone versus the very same quarterback in 2022. IDC however reports a drop of 29 percent to 56.9 million units, while Canalys on the other hand reports a drop of 32.6 percent to 54 million units.

And although all five of the biggest manufacturers suffered double digits in terms of declines, Apple, however, appears to have been hit the hardest. IDC’s report claims that the shipments of the company dropped by 40.5 percent, while Canalys on the other hand is reporting a drop of 45.5 percent. Both research houses have suggested that the market share of the Mac manufacturer also has dropped by between one and two percentage points.

The Drop in Mac Shipments Was Expected

The reported drop in Mac shipments is not quite surprising. Apple prior to this reported a drop of 29 percent during its last earnings release which as you should know covers the three months ending December 31st, 2022, and had previously warned that sales of its computers would reportedly  “decline substantially.”

But all of these reports put Apple’s drop in the context of an entire industry that has been feeling the pinch for several quarters now. Canalys on its end however notes that Q1 2023 was the fourth consecutive quarter reported of double-digit annual declines for PC makers in general.

Reasons for the Drop in PC Shipment

There however appear to be a couple of interrelated reasons for the drop in question. And one is the end of the explosion in demand that has occurred over the past couple of years as everyone got to stock up on computer hardware in order to allow employees and students to study as well as work from home.

But this does not tell the complete story, since IDC notes that the shipments of this quarter were “noticeably lower” compared to pre-pandemic levels. It now seems very likely that wider economic uncertainty is also playing a huge part, with Canalys’ Ishan Dutt citing interest rate rises in the US as well as Europe as yet another cause of reduced demand.

Canalys and IDCs Suggestions on Recent Developments

Both Canalys and IDC have suggested that demand will pick up in the second half of the 2023 and 2024 calendar years. “By 2024, an aging installed base will start coming up for refresh,” IDC’s Linn Huang reportedly said. “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.” However, Huang also cautions that “if recession in key markets drags on into next year, recovery could be a slog.”

The Upside to the Reported Drop in Demand as Per IDC

Apparently, there is at least one upside to the reported drop in demand as per IDC. Supply chains are now getting some space in order to recover thus allowing PC makers in the process to explore other options outside of China.



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