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Global PC Shipments Continue to Dwindle in Q2 2023, IDC Reports

On July 10, 2023, the International Data Corporation (IDC) disclosed that the second quarter of 2023 marked a continuous decline in global PC shipments. IDC’s Worldwide Quarterly Personal Computing Device Tracker preliminary results indicated a significant 13.4% year-over-year decline during Q2 2023. This is the sixth consecutive quarter experiencing such a downturn.

Multiple factors contributed to the market’s adverse state, including macroeconomic challenges, weak demand in both consumer and commercial sectors, and IT budget shifts away from device purchases. Nonetheless, despite a dismal performance, the market performed better than initially forecasted for the quarter.

The sluggish demand has caused inventory levels to remain unusually high for an extended period. This includes finished systems at the channel level and within the supply chain. All leading companies, except Apple and HP Inc., experienced double-digit declines during the quarter. Apple benefited from a favorable year-over-year comparison due to supply chain issues in Q2 2022 amid COVID-19 related shutdowns. HP, having faced inventory oversupply in the past year, is finally reaching normalized levels, letting its growth rate emerge amidst the downturn.

Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers, highlighted, “Elevated channel and component inventory are once again dragging down the market.” Despite signs of these issues slowly easing, many component suppliers continue to offer reduced pricing to clear their inventory. However, both PC makers and channels remain cautious about new systems due to the reduced demand.

In the face of these ongoing market fluctuations, companies are walking a fine line. Ryan Reith, group vice president for IDC’s Client Device Trackers, said, “Companies don’t want to be caught with short supply like they were in 2020 and 2021, but at the same time, many seem hesitant to make the big bet on a market rebound.”

On the consumer side, IDC reports a return to pre-pandemic habits where computing needs are shared across multiple devices. The consumer wallet is expected to favor smartphones over PCs. Commercially, workforce reductions and the introduction of generative AI contribute to the uncertainty regarding the allocation of already reduced budgets.

In terms of market share and year-over-year growth in Q2 2023, Lenovo led the market with 23.1% share, although experiencing an 18.4% decrease in growth. HP Inc. followed with a 21.8% market share, enduring a modest 0.8% reduction in growth. Dell Technologies and Acer Group saw steeper declines of 22.0% and 19.2% in growth, respectively. Interestingly, Apple showcased a 10.3% growth increase, marking a bright spot in an otherwise dark quarter for PC sales.

Top 5 Companies, Worldwide Traditional PC Shipments, Market Share, and Year-Over-Year Growth, Q2 2023 (Preliminary results, shipments are in millions of units)
Company 2Q23 Shipments 2Q23 Market Share 2Q22 Shipments 2Q22 Market Share 2Q23/2Q22 Growth
1. Lenovo 14.2 23.1% 17.4 24.5% -18.4%
2. HP Inc. 13.4 21.8% 13.5 19.1% -0.8%
3. Dell Technologies 10.3 16.8% 13.2 18.6% -22.0%
4. Apple 5.3 8.6% 4.8 6.8% 10.3%
5. Acer Group 4.0 6.4% 4.9 6.9% -19.2%
Others 14.4 23.3% 17.2 24.2% -16.5%
Total 61.6 100.0% 71.1 100.0% -13.4%
Source: IDC Quarterly Personal Computing Device Tracker, July 10, 2023
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