Total PC shipments worldwide reached approximately 55.2 million units in the first quarter of 2023, representing a 30% decline from their levels in the first quarter of 2022, according to preliminary figures provided by research firm Gartner. High inventories of the product coincided with low demand for personal computers, especially in light of current economic conditions and lack of incentives to buy, leading markets to record a second annual decline. Foot in a row.
Mikako Kitagawa, head of research at Gartner, said: “Pricing pressures increased in the second quarter as manufacturers offered deep offers and discounts in hopes of liquidating their inventory. These companies lowered the average selling price of PCs available to distribution channel partners, but sales prices of new PC models for the same distribution channels were inflationary. Rates remained high due to an increase in supply chain costs, which were affected by rates.
He added, “Manufacturers in fact adopted strategies to protect profit margins during this period rather than seeking to increase their market share by cutting prices. Pricing rates are expected to start rising gradually in 2023, which will push up the prices of modern PCs offered by distribution channels to the end user.
Major companies managed to maintain their ranking in the global PC market in the first quarter of 2023, with Lenovo maintaining its market leadership with a market share of 23% of shipments.
- Low annual fee for “Lenovo”.
Lenovo posted the lowest annual shipment rate for two consecutive quarters in the company’s history. While US markets have been a major challenge for the company, Lenovo has managed to register a modest growth rate in Japanese markets, benefiting from PC purchases towards the end of the fiscal year.
Markets saw record HP shipments for the seventh consecutive season, which saw a one-decimal decline. The company’s exports to EMEA markets fell 37% compared to last year, but the decline was less pronounced in US markets.
For Dell, it posted its fourth consecutive quarter of annual decline. Asia Pacific markets saw the company’s worst results, with exports down more than 40%. Dell has been hit hard by the decline in demand for personal computers, especially for the corporate sector.
- Small and medium enterprises
“Demand for PCs overall was weak last quarter, but the decline was seen more in the small and medium business sector due to uncertainty in economic conditions,” Kitagawa said. Although information technology tops the list of expenses for small and medium-sized enterprises, as these enterprises realize the importance of using available technologies to increase business growth, they face budget cuts due to the possibility of continued use of PCs. Devices for a long time. On the other hand, expectations suggest that spending on other technology sectors such as software and IT services will increase in 2023.
US markets fell 25.8% in the first quarter of 2023. Although the economic situation in the first quarter of 2023 looked better than expected, especially in terms of consumer spending, it did not affect PC sales as consumers preferred to spend money on other things. areas.
Dell holds the number one position in the personal computer market in the United States in terms of its shipments, with approximately 26.4% market share, followed by HP with 25.7% market share.
- Europe, Middle East and Africa
PC markets in Europe, Middle East and Africa also recorded a sharp decline of 35.9% year-on-year as total shipments for the region fell below the US market.
Kitagawa added: “Continued political instability, inflationary pressures, rising interest rates, and fears of a possible recession have all contributed to a significant decline in the PC market in Europe, the Middle East and Africa. None of the big six companies have been able to avoid this decline, as their annual shipments have almost A third was lost.
PC markets in Asia Pacific also suffered a significant decline, with China the most affected due to high inventory build-up by channel partners and weak market demand. In other markets outside of China, weak demand in the PC market resulted from factors such as high inflation rates, rising interest rates, and declining local currency exchange rates. However, markets such as India and Vietnam fared slightly better, benefiting from the relocation of some manufacturing and business operations outside of China, especially as companies seek to diversify their resources to reduce over-reliance on China as a sole source of production. . As for the Japanese market, it recorded a relatively more moderate decline at a rate of 9.8% compared to other regions.
But these are preliminary results, while final results will soon be available to customers of Gartner’s quarterly PC statistics program around the world. The program provides a comprehensive picture of PC markets around the world, allowing companies to plan production, distribution, marketing and sales, while keeping abreast of key issues around the world and their future implications.
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