During 3Q23, global PC shipments witnessed a 7.6% drop year over year, culminating in a total of 68.2 million units shipped, as per the preliminary findings from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.
Despite the persistently muted demand and an underwhelming global economic scenario, there has been an uptick in PC shipments in the consecutive two previous quarters. This trend hints at a reduced annual contraction rate and suggests that the market may have surpassed its lowest point. In recent months, the PC inventory landscape has evolved, approaching optimal levels across numerous channels. Nevertheless, pricing continues to face downward forces, a factor expected to impact both consumer and business sectors. Among the leading five vendors, most underwent significant double-digit dips this quarter. Specifically, Apple's pronounced drop can be attributed to unfavorable year-over-year metrics, largely stemming from a COVID-induced production cessation in 3Q22. Conversely, HP's ascent in numbers primarily stems from inventory normalization.
"The PC industry is on a slow path to recovery as a device refresh cycle and end of support for Windows 10 will help drive sales in the second half of 2024 and beyond. In the meantime, the PC industry will unfortunately experience more pain," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "The slowness in the industry is giving the supply chain an opportunity to explore procurement and production options outside China and this will likely remain a key issue going forward, second only to the advancement of AI within PCs."
"Generative AI could be a watershed moment for the PC industry," said Linn Huang, research vice president, Devices & Displays at IDC. "While use cases have yet to be fully articulated, interest in the category is already strong. AI PCs promise organizations the ability to personalize the user experience at a deeper level all while being able to preserve data privacy and sovereignty. As more of these devices launch next year, we expect a significant boost to overall selling prices."
