PC Shipments Suffer ‘Precipitous Drop’ in Q1

Shipments of personal computers fell earlier this year amid the economic downturn.

That’s according to a report issued Sunday (April 9) by market research firm IDC, which found that worldwide personal computer (PC) shipments fell 29% year over year during the first three months of this year.

“Weak demand, excess inventory, and a worsening macroeconomic climate were all contributing factors for the precipitous drop in shipments of traditional PCs during the first quarter of 2023,” IDC said in a news release.

Out of the five companies examined in the report, Apple was hit hardest, with shipments falling 40.5% during the quarter. Dell followed with a 31% decline.

“Though channel inventory has depleted in the last few months, it’s still well above the healthy four to six week range,” Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers, said in the news release.

“Even with heavy discounting, channels and PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter.”

The report notes that PC shipments will shrink in the near term, but could improve in the long term if the world economy picks up and people begin to think about upgrading their computers.

“By 2024, an aging installed base will start coming up for refresh,” said Linn Huang, research vice president for devices and displays at IDC.

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

IDC’s report follows similar findings from the research firm Gartner earlier this year that projected a worldwide drop in PC and smartphone shipments for 2023.

As PYMNTS noted last week, the question of how the economic outlook will affect spending among consumers earning more is still up in the air.

But recent research indicates consumers in all income groups plan to travel, and purchase home electronics and expensive apparel this year.

Consumers who live paycheck to paycheck without trouble paying their bills say they expect to spend more on non-essentials like clothes and gadgets this year. Where they’ll buy those things is another story.

“Once-loyal customers are turning into merchant-agnostic deal-chasers, as 56% of U.S. retail shoppers have switched merchants in the name of cost-cutting, and price influences 67% of shoppers’ choice of a large retailer,” PYMNTS wrote last week.