Global PC Demand Down Amid Recession Fears, Steepest Decline Since Mid-90s

Global fears, increased inflation and higher interest rates have had a major impact on PC demand and the global PC shipments logged 65.3 million units in the fourth quarter of 2022, a 28.5 per cent decrease from the fourth quarter of 2021, a report showed on Thursday.

According to Gartner, this marks the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-1990s.

For the entire year, PC shipments reached 286.2 million units in 2022, a 16.2 per cent decrease from 2021.

"Since many consumers already have relatively new PCs that were purchased during the pandemic, a lack of affordability is superseding any motivation to buy, causing consumer PC demand to drop to its lowest level in years," said Mikako Kitagawa, director analyst.

The enterprise PC market is also being impacted by a slowing economy.

"PC demand among enterprises began declining in the third quarter of 2022, but the market has now shifted from softness to deterioration," said Kitagawa.

Enterprise buyers are extending PC lifecycles and delaying purchases, meaning the business market will likely not return to growth until 2024.

While Lenovo maintained 24 per cent market share at the top, the company experienced its steepest decline. Lenovo's shipments fell in all regions except in Japan, declining over 30 per cent in EMEA and Latin America.

HP and Dell also experienced historically steep declines. HP was hit hardest in the EMEA market, where shipments decreased 44 per cent year-over-year.

For Dell, weak demand in the large business market impacted shipments in the second half of 2022.

The Asia-Pacific market excluding Japan declined 29.4 per cent year-over-year, mainly due to the market in China.

"The PC industry experienced very unusual ups and downs over the past 11 years. After the extraordinary growth period between 2020 and 2021 due to the pandemic, the market has clearly begun a downward trend which will continue until the beginning of 2024," said Kitagawa.

--IANS

na/ksk/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

RECENT NEWS

Titi Coles Legacy In Finance: Pioneering Diversity And Leadership

Titi Cole, one of the most senior Black women in the world of finance, recently exited her high-profile role at Citi. He... Read more

Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape

As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more

The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma

In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more

The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty

In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more

Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction

In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more

Central Banks And The Economic Horizon: Steering Through Uncertaintie

In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more