PC shipments dip for 6th consecutive quarter in Q2

Global PC shipments continued to shrink by 13.4 percent year on year, marking the sixth consecutive quarter of decline, according to IDC.

The contraction is attributed to macroeconomic headwinds, weak demand from both the consumer and commercial sectors, and a shift in IT budgets away from device purchases.

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.

No PC maker is immune to the challenges. Except for Apple and HP Inc, all the leading companies experienced double-digit declines in Q2.

Apple benefited from a favourable year-over-year comparison as the company suffered supply issues during Q2 of 2022 due to COVID-19-related shutdowns within the supply chain. HP faced an oversupply of inventory in the past year and is finally approaching normalised levels of inventory, allowing its growth rate to shine during this downturn.

“Elevated channel and component inventory are once again dragging down the market. 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,” said Jitesh Ubrani, Research Manager of IDC’s Mobility and Consumer Device Trackers.

According to Ryan Reith, Group Vice President of IDC’s Client Device Trackers, the roller coaster of supply and demand the PC industry faced over the past five years has been extremely challenging.

“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,” he said.

Photo: Edward Lim