According to IDC’s latest report, all major PC makers experienced a decline in shipments, with combined shipments slumping 29% to 56.9 million units. The demand surge caused by remote work during the pandemic has vanished. Lenovo Group Ltd. and Dell Technologies Inc. both experienced drops of more than 30%, while HP Inc. was down 24.2%. Asustek Computer Inc. rounded out the top five with a 30.3% fall. Samsung Electronics Co. is cutting memory production after reporting its slimmest profit since the 2009 financial crisis.
Apple’s PC Shipments Decline
Apple Inc.’s PC shipments declined by 40.5% in the first quarter, marking a tough start to the year for PC makers still grappling with a glut of unsold inventory. No major brand was spared from the slowdown, with Asustek Computer Inc. rounding out the top 5 with a 30.3% fall.
Possible Rebound in the Second Half of the Year
The PC market has seen declines for multiple quarters, and a rebound in the second half of the year is still possible, according to Bloomberg Intelligence analyst Anurag Rana. However, Apple may be particularly impacted by higher exposure to the consumer market and tougher comparisons to a strong period the year prior. During a February earnings call, Chief Financial Officer Luca Maestri said the company expects Mac revenue to decline double digits in the quarter ending in March.
Manufacturers Explore Production Options Outside China
The cooling demand is giving manufacturers the time and room “to make changes as many factories begin to explore production options outside China,” IDC said in the report. Apple is gradually diversifying the geography of its manufacturing base as brewing tensions between Washington and Beijing threaten to disrupt its carefully orchestrated supply chain.
Potential Rebound in 2024
The IDC researchers foresee a potential rebound for PC makers in 2024, driven by a combination of aging hardware that will need to be replaced and an improving global economy.
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