The PC market is now facing a significant slowdown in demand. Even Apple blames the blow.
As expected, the tide turned for the Tim Cook-led company, which saw a bigger decline than its competitors, according to data from consultancy IDC. The drop in sales is -40.5%, while Lenovo, Dell and Asus saw a drop of almost 30% and HP of 24.2%.
Macs with M2 chips do not work. This is particularly surprising for a company that has so far weathered the storm better than its competitors. The appearance of Macs with M2 chips should have been a success, but sales do not seem to respond to it. Truth be told, recent studies indicate that the company has limited production of these chips, which would make sense given the market situation.
Did Apple make the right decision by raising the prices of its Macs? This question may arise due to the marked decline in sales of these products.
Original article from April 4, 2023:
The end of confinements around the world has led to a dizzying drop in PC sales. After several months of sustained growth, linked to the generalization of teleworking, distance education during the pandemic, and digital entertainment at home (video games and SVoD), the market is now facing a significant slowdown in Requirement.
As consumers and businesses have already renewed or improved their IT equipment during the confinement period, their need for equipment has been considerably reduced. Moreover, the current economic crisis is also weighing on this market, with households and companies having to reduce their expenditure and adjust their budgetary priorities. This combination of factors is causing PC sales to plummet.
An abyssal fall
Canalys estimates reveal that PC sales in Western Europe fell 38%, compared to the same period the previous year, to reach 10.7 million units in the fourth quarter of 2022. Laptops were the most affected with 8.6 million units sold, 40% less than the previous year.
PC market between Q4 2021 and Q4 2022
| Marques | Q4 2021 market shares |
Q4 2022 market shares |
Annual growth |
|---|---|---|---|
| Lenovo | 25.4% | 26.9% | -34.9% |
| HP | 25.6% | 23.8% | -42.8% |
| Dell | 15.6% | 14.6% | -42.4% |
| Apple | 10.5% | 13.2% | -22.8% |
| Asus | 6.6% | 8.1% | -24.9% |
| Others | 16.2% | 13.4% | -49.2% |
| Total | 100.0% | 100.0% | -38.5% |
Desktop computer sales also saw a significant drop of 29% to 2.1 million units. The tablet market also suffered, with sales falling 17% to 6.6 million units due to weak consumer demand. For the whole of 2022, PC and tablet sales fell 21% and 18%, respectively. According to Canalys, the market should continue to decline for most of 2023 before resuming growth in the last quarter of the year.
Despite the current difficulties in the PC market, a rebound is expected in 2024 and 2025. Analysts predict that economic conditions will gradually improve and demand will regain momentum for both consumers and businesses. Deferrals of purchases made during the downturn should fuel a significant market recovery.
In addition, companies will undertake a more generalized transition to Windows 11, generating a need to renew the IT infrastructure. The sector should also benefit from advances in technology and changing user needs, which will continue to drive demand. We imagine that products such as laptops with foldable screens or portable consoles equipped with Windows 11 will benefit from all this.
Apple M2 products are also affected
According to reports from supply chain partners, Apple stopped production of its current generation M2 SoC line between January and February 2023, following a significant drop in demand for Mac computers equipped with these chips.
The information is serious, it comes from partners ofOutsourced Semiconductor Package Test (OSAT), which brings together several companies in the supply chain involved in the assembly and testing of the Apple M2 SoC. OSAT partners say they received no M2 chips from TSMC in those two months, and shipments only resumed at half capacity in March.
At the first quarter 2023 earnings conference, Apple announced color with a significant drop in Mac sales revenue from $10.85 billion to $7.74 billion. ” The PC market is facing a very difficult situation said Tim Cook, Apple’s CEO, I think we have an advantage with our Apple Silicon chip, but it will be very difficult in the short term. ».
The drop in demand until the launch of the new MacBook models would certainly justify a slowdown in production. However, the total shutdown for several months suggests that demand was well below Apple’s expectations.
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