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Worldwide PC shipments will total 65.3 million units in the fourth quarter of 2022, down 28.5% from the fourth quarter of 2021, according to preliminary results from Gartner.
This was the largest quarterly decline in shipments since Gartner began tracking the PC market in the mid-1990s. For the full year, PC shipments in 2022 will reach 286.2 million units, down 16.2% from 2021.
“Expectations of a global recession, rising inflation and rising interest rates are having a major impact on PC demand,” said Mikako Kitagawa, principal analyst at technology research and consulting firm Gartner.
lack of affordability
“With many consumers already owning relatively new PCs purchased during the pandemic, a lack of affordability is displacing any motivation to buy, causing consumer PC demand to fall to its lowest level in years.”
“The enterprise PC market is also affected by the economic slowdown,” Kitagawa added. “Enterprise PC demand began to decline in the third quarter of 2022, but the market has now turned from weakness to deterioration. Enterprise buyers are extending PC life cycles and delaying purchases, which means that the business market may not return to growth until 2024.”
Meanwhile, high PC inventory levels started to increase in the first half of 2022 and have become a bottleneck for the PC market. A PC undersupply due to high demand and supply chain disruptions could quickly turn into a surplus by 2021 once demand slows rapidly and significantly.
In the fourth quarter of 2022, the top three manufacturers in the global PC market will remain unchanged, and Lenovo will remain the number one in shipments.
Lenovo maintains share
While Lenovo maintained a 24 percent market share, the company experienced its biggest decline since Gartner began tracking the PC market. Lenovo’s shipments declined in all regions except Japan, with declines of more than 30% in EMEA and Latin America.
HP and Dell also experienced steep and historic declines. HP was hit the hardest in the EMEA market, with shipments down 44% year-over-year. For Dell, weak demand in the large enterprise market impacted shipments in the second half of 2022.
Regional overview
The US PC market declined by 20.5% in the fourth quarter of 2022, marking the sixth consecutive quarter of decline in shipments. Echoing trends in the global PC market, both consumer and business PC spending slowed due to economic conditions.
“Even as vendors offered deep PC discounts during the holidays to keep inventory down, consumers didn’t budge with their money,” Kitagawa said.
With a 26.8% market share, HP occupies the top spot in the US PC market by shipments. Dell followed with a 23.4 percent share of the US PC market.
The EMEA PC market declined 37.2% year-over-year due to a combination of political turmoil, inflationary pressures, rising interest rates and an impending recession.
Market demand stops
“A drop of this magnitude can only happen when market demand actually stops,” Kitagawa said. “Business and consumer confidence in the EMEA region has collapsed, leading to a sharp drop in PC demand. The massive build-up of inventory has also severely limited sales opportunities as sellers focus on moving older inventory.”
The Asia-Pacific market excluding Japan decreased by 29.4% year-on-year, mainly due to the impact of the Chinese market. While the fourth quarter is traditionally the peak season for China’s commercial PC market, the Chinese government’s budget cuts and uncertainty over changing Covid policies led to a sharp drop in overall PC demand.
“Total PC shipments in 2022 are close to pre-Covid levels, well below 300 million units shipped in 2019,” Kitagawa said. “The PC industry has experienced very unusual ups and downs over the past 11 years. After a period of extraordinary growth in 2020-2021 due to the pandemic, the market has clearly begun a downward trend that will continue until early 2024.”
These results are preliminary. Final statistics will be available shortly to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. The program provides a comprehensive and timely picture of the global PC market, enabling product planning, distribution, marketing, and sales organizations to keep abreast of key issues and their impact on the global future. — trade arab news agency
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