Tough times persist for the PC market, which saw shipments fall 15% year over year in the third quarter, according to research firm IDC.
During the July to September period, total PC shipments came in at 74.3 million units, down from 87.3 million units from a year ago. Since then, the economic downturn, inflation and plummeting demand for Chromebooks has sapped momentum for the PC market.
Lenovo, HP, and Dell all experienced double-digit decreases in shipments. The only bright spot was Apple, which saw shipments in Q3 rise by 40% year over year, due to Apple trying to make up for shipments lost in the previous quarter after its contract factories in China temporarily shut down from COVID-19 lockdown orders.
IDC added that the PC market is in “retreat,” citing how the average selling prices for PCs have fallen over the last two quarters, after reaching a historic high at $910 in this year’s Q1.
Canalys, another research firm, posted even more pessimistic shipment estimates for the third quarter period. The company estimates shipments dropped 18% year over year partly because of “bloated” inventories at PC makers and retailers.
Laptop shipments took the biggest beating, with shipments down 19% year over year at 54.7 million. Meanwhile, desktop shipments dropped by only 11%
“While the Q3 shipment volume remains comparable to pre-pandemic figures, the rapid deterioration in demand across all segments is a worrying sign not only for vendors, but for stakeholders across the supply chain,” says Canalys analyst Ishan Dutt. Indeed, last week, AMD reported a worse-than-expected decline for PC sales, resulting in a $1.1 billion shortfall in the company’s revenue projections.
Dutt added: “Although promotional activities by retailers have helped clear some inventories ahead of the holiday season, overall enthusiasm for PCs among consumers has dwindled in the face of rising costs across other goods and services.” The research firm also expects the sluggish market conditions to continue into 2023.