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IDC Tracker: PC shipments decline in Q1 2023, excess inventory and poor demand are the culprits

Based on IDC Tracker's report shipments for traditional PCs have seen an alarming drop in the 1st quarter of 2023.
IDC Tracker: PC Pain Persists in Q1 2023, Excess Inventory and Poor Demand is the culprit!
The table from International Data Corporation (IDC)

PC shipments face a decline in Q1 2023!

The main causes are poor demands, surplus inventory, and a declining macroeconomic environment. Worldwide Quarterly Personal Computing Device from IDC stated that Global shipments amount to 56.9 million, a reduction of 29 percent versus the same quarter last year.

The initial results showed the end of COVID-driven demand and a return to temporary pre-COVID tendencies. The shipped units in 1Q23 can be seen as significantly lower versus the 59.2M units shipped from 1Q19 and 60.6M in 1Q18.

Though channel inventory has depleted in the last few months, it's still well above the healthy four to the six-week range. Even with heavy discounting, channels, and PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter, said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers.

The break in progress and demand is also allowing the supply chain to make adjustments as many manufacturers begin to look for other production locations outside of China.

By 2024, an aging installed base will start coming up for refresh. If the economy is trending upward by then, we expect a significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks, and businesses move to Windows 11. If recession in key markets drags on into next year, recovery could be a slog, said Linn Huang, research vice president, of Devices and Displays at IDC.

PC makers are also considering their moves throughout 2023 and have started to withdraw orders for Chromebooks in anticipation of a rise in license prices later this year.
Top 5 PC makers in Q1 2023
Top 5 PC makers in Q1 2023

With that said, IDC stated that PC shipments will definitely suffer in the short term but will rebound to growth towards the end of the year as the global economy recovers and the installed base begins to consider upgrading to Windows 11.

Top 5 PC makers (Q1 2023)

1. Lenovo
2. HP
3. Dell
4. Apple
5. ASUS 

What do you guys think?

Source: IDC

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