Apple Inc.'s personal computer shipments declined by a staggering 40.5% in the first quarter of 2023, marking a difficult start to the year for PC makers still grappling with an excess of unsold inventory. The International Data Corporation's (IDC) Worldwide Quarterly Personal Computing Device Tracker revealed that shipments from all PC manufacturers combined plummeted by 29%, totaling just 56.9 million units and falling below early-2019 levels.
Major brands such as Lenovo Group Ltd., Dell Technologies Inc., HP Inc., and Asustek Computer Inc. also experienced significant drops in shipments, ranging between 24.2% and over 30%. IDC attributed these declines to factors including weak demand, excess inventory, and a worsening macroeconomic climate.
John Smith, an analyst at IDC, explained: "The era of COVID-driven demand has come to an end as we see a temporary return to pre-COVID patterns." He further elaborated on how graphics cards, memory chips, and monitor prices have increased in the last two quarters.
Apple's global shipment figures for traditional PCs dropped by nearly one-third compared to last year's numbers—down from approximately seven million units—to only about four million units this quarter due to weakened consumer demand alongside persistent market challenges posed by surplus inventories.
As companies reassess their plans for the remainder of the year amid challenging conditions within the industry, some have started placing orders for Chromebooks ahead of anticipated licensing cost increases later this year.
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According to data provided by IDC analysts earlier today Monday morning, Apple's worldwide PC market share dropped from 7.2% to just 8.6%. With a shipment deficit of nearly three million units compared to last year, the company’s shares dipped slightly over 1% in pre-market trading.
PC manufacturers are expected to face difficulties during the near term as they attempt to overcome these adverse conditions; however, growth is projected to rebound by the end of 2023 with improved demand and better-managed inventories among other factors.
Apple is scheduled to present its March quarter earnings report on May 4th, which will provide further insight into this challenging period for personal computer manufacturers.