New Delhi [India], July 11 : Personal computer (PC) shipments during the second quarter of 2023 declined 13.4 per cent globally on a yearly basis, according to International Data Corporation (IDC) data tracker.
International Data Corporation (IDC) is a global market intelligence and advisory services provider.
According to IDC, this was the sixth consecutive quarter of contraction brought on by macroeconomic headwinds, weak demand from both the consumer and commercial sectors, and a shift in IT budgets away from device purchases.
"Despite the poor showing, the market performed better than forecast for the quarter," it, however, noted.
Meanwhile, the overall weak demand for PCs has caused inventory levels to remain above normal for longer than expected.
"So far, no PC maker has been immune to the challenges presented by the market. Except for Apple and HP Inc., all the leading companies experienced double-digit declines during the quarter. But Apple benefited from a favorable year-over-year comparison as the company suffered supply issues during 2Q22 due to COVID-related shutdowns within the supply chain."
For HP, IDC said it has faced an oversupply of inventory in the past year which is finally normalising, allowing it to grow amid the downturn in the market.
"Elevated channel and component inventory are once again dragging down the market," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers.
According to Ryan Reith, group vice president for IDC's Client Device Trackers, "The roller coaster of supply and demand the PC industry has faced over the past five years has been extremely challenging."
"On the consumer side, we're seeing a return to pre-pandemic habits where computing needs are shared across multiple devices, and we firmly believe the consumer wallet will favor smartphones over the PC."
On the commercial side, Reith noted workforce reductions (for many big companies) as well as the introduction of generative Artificial Intelligence "only add more confusion as to where to place an already reduced budget".
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