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PC Sales Fall Significantly
The third quarter of 2022 saw a dramatic decline in personal computer sales, which had previously risen as businesses embraced hybrid and remote work during the COVID-19 pandemic.
FREMONT, CA: The third quarter of this year witnessed the greatest drop in PC sales in decades, nearly 20 per cent, and the fourth consecutive quarter of year-over-year declines. The pandemic-induced boom in PC sales and the enormous increase in hybrid and remote work are now finished and no longer contributing to computer sales. Mikako Kitagawa, a Director Analyst at Gartner, stated that back-to-school PC purchases also had disappointing outcomes, despite big promotions and price decreases, due to a lack of need since many consumers had purchased new PCs in the prior two years.
Economic uncertainty and geopolitical turmoil on the corporate side led to more selective IT spending, and PCs were not at the top of the priority list, Kitagawa continued. The third quarter of 2022 saw a staggering global fall in PC sales of 19.5 per cent, the most since Gartner started keeping track of sales in the mid-1990s. According to IDC's Worldwide Tracker, the research firm estimated the decline to be 15 per cent year over year and matched Gartner's assessment of the factors affecting sales.
According to Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers, the demand for new PCs that peaked during the pandemic has essentially been satisfied.
The third quarter of 2022 saw a 17.3 per cent decline in the US PC market, the fifth straight quarter of year-over-year shipment loss. According to Gartner, lagging desktop sales were propelled by pent-up demand from the private and public sectors, while weak laptop sales hurt the entire US market.
Although smaller businesses are displaying relative confidence about macroeconomic conditions, inflation is the US market's top concern, according to Kitagawa. Small and medium organisations did not experience as significant a decline in laptop demand as large enterprises in the third quarter of 2022.
According to Gartner, Europe, the Middle East, and Africa (EMEA) regions experienced the highest loss of all areas, with sales falling 26.4 per cent year over year to 17 million units in the third quarter. Following a boom at the outset of the pandemic, it was the third unfavourable quarter for the EMEA PC market.
According to IDC, there were 74.3 million PCs shipped worldwide. Gartner estimated that 67.9 million PCs were sold worldwide. According to Gartner, the top three PC suppliers in the globe didn't change during the quarter, with Lenovo maintaining the top rank in shipments with a 25.2 per cent market share. Dell came in third with 17.7 per cent of sales, HP came in second with 18.7 per cent. According to Gartner, Apple, Asus, and Acer came in second with 8.5 per cent, 8.2 per cent, and 6.6 per cent of PC sales, respectively.
According to Jitesh Ubrani, research manager for the worldwide mobile device trackers at IDC, consumer demand has remained tepid, while promotional activity from the likes of Apple and other competitors has helped ease the decline and cut channel inventory by a couple of weeks across the board. The only exception is Apple, whose third-quarter supply increased to make up for missed orders resulting from the lockdowns in China during the second quarter. Supply has also reacted to the new lows by lowering orders.
According to the research organisations, Windows 11, which recently received its first yearly upgrade since its launch in October 2021, likewise had no discernible effect on the sales of new PCs.