Computer sales plummet around the world

Another blow to the personal computer market. According to IDC, PC sales fell another 29% in the first quarter, to less than 57 million. A striking figure, significantly lower than the 59.2 million devices sold during the same period in 2019, before the Covid.

What is behind this collapse after a year 2022 already in sharp decline? The IDC firm highlights “weak” demand, “excess” inventory and a “worsening” macroeconomic climate.

“Demand remains subdued across all categories, particularly as interest rate hikes continue in the U.S., Europe and other markets where reducing inflation is the top priority,” Ishan noted. Dutt, analyst at Canalys.

Apple on the front line

Apple experienced the sharpest fall: its computer sales fell 46% year on year, to 4 million devices sold in the first quarter, according to Canalys and 40.5% according to IDC.

Until now, Apple had succeeded in resisting the sharp decline in the market, which has been going on for several quarters, better than its competitors. The Californian giant had seen its sales decline by around 10% in the fourth quarter. It comes in fourth in terms of market share, behind Lenovo, HP and Dell, and just ahead of Asus.

Difficult economic conditions and inflation are weighing on the market and consumer purchases. Brands all have to manage large stocks, after being worn for a long time by the pandemic.

“Despite the heavy price cuts, stores and manufacturers will keep inventories high through mid-year and possibly even into the third quarter,” said Jitesh Ubrani, research director at IDC.

A rebound in 2024?

The firm believes, however, that this “pause in growth and demand” could give companies some time to try to reduce their dependence on factories in China, in the context of significant tensions between Washington and Beijing.

The personal computer market is expected to rebound in 2024, according to Canalys and IDC. Analysts are counting on an economic recovery, the transition to the Windows 11 operating system and the need to update obsolete equipment.

SourceAFP