PC market

The global PC market experienced a nine per cent decrease in shipments, totaling 64.3 million units in the third quarter of 2023, according to Gartner. This is eighth consecutive quarter of decline for the industry, signaling a prolonged period of contraction.

However, analysts suggest that there are glimmers of hope on the horizon, as signs of a potential recovery emerge. Mikako Kitagawa, Director Analyst at Gartner, commented on the findings. He said, “There is evidence that the PC market’s decline has finally bottomed out.”

Kitagawa attributed a portion of this quarter’s shipment boost to seasonal demand from the education sector. This surge, however, was partially offset by persistently weak demand in the enterprise PC market. Vendors have also made strides in reducing PC inventory levels, with expectations of a return to normalcy by the close of 2023, provided holiday sales remain steady.

Lenovo Maintains Its Lead

Lenovo maintained its dominance in the market, holding the top spot in shipments with a 25.1 per cent market share. Though Lenovo did experience a year-over-year decline in shipments, it was a moderated single-digit decrease. In contrast, HP stood out as the only vendor to exhibit growth, reporting increased shipments across all regions. Meanwhile, Dell faced its sixth consecutive quarter of shipment decline, impacted by sluggish demand in the enterprise PC sector, where it maintains a strong presence.

Apple, on the other hand, saw a sharp decline in shipments compared to the previous year. This dip can be attributed, in part, to a surge in shipment volume in Q3 2022, following supply disruptions caused by China’s lockdown in early 2022. In the third quarter of 2023, Apple’s shipments adhered to typical seasonal trends, primarily driven by demand from students and educators.

Looking ahead, Kitagawa said, “The good news for PC vendors is that the worst could be over by the end of 2023.” The business PC market is poised for an upgrade cycle, driven by the anticipated adoption of Windows 11. Consumer demand is also projected to rebound as PCs purchased during the pandemic reach the early stages of their refresh cycle.

Regional Trends

The US PC market experienced a 9.3 per cent decline in the third quarter of 2023, primarily attributed to weak enterprise PC demand. However, growth in Chromebook sales driven by replacement demand in K-12 educational institutions helped offset some of the decline. In EMEA, the PC market declined by 3.6 per cent year-over-year, with factors such as political unrest, inflationary pressures and interest rate increases contributing to the drop.

In the Asia Pacific region, a steep 20 per cent decline in China led to an overall 13 per cent year-over-year drop. In China, both consumer and enterprise PC spending remained weak, largely due to unemployment concerns and government spending cuts.

In India, new restrictions on device imports announced in August 2023 initially caused disruptions, but a revised announcement later extended the deadline to November 2023, minimising the impact on the Indian PC market for the remainder of the year.

Gartner projects a 4.9 per cent growth for the worldwide PC market in 2024, with anticipated growth in both the business and consumer segments.