The end of the biggest boom the personal computer industry has ever seen is an ugly one and it’s not over yet.
According to reports from two market research firms that cover the industry, the holiday season PC shipments are believed to experience the biggest year-over-year decline in history. PC shipments fell 28.1% to 67.2 million units, according to IDC records, while Gartner reports that his PC shipments fell 28.5% to 65.3 million units in the fourth quarter. .
IDC analyst Ryan Reith said in a statement:
“There are still many opportunities ahead,” he added, adding that the market has ample potential for a recovery. But don’t expect that in the near future.
“We believe PC inventory will remain high and there is potential for overhang. [first half] Citigroup analyst Jim Suba said in a report Wednesday that he expects the recovery to slow in the short term as the recession woes delay the commercial upgrade cycle, so he expects the next few quarters to slow down. modeled the decline of
Suva said the holiday decline was worse than he thought, as he modeled a 22% decline. After all, all manufacturers except Apple Inc. AAPL
We easily surpassed that drop.
News: The PC industry has once again suffered its worst drop on record.
The three companies with the largest market share in the world, Lenovo Group, 992,
HP Co., Ltd. HPQ,
and Dell Technologies Inc. DELL,
All shipments decreased by more than 28%. According to both IDC and Gartner, Lenovo units were down 28.5%, HP units were down 29%, and Dell showed a sharp decline of 37.2%. IDC said Apple’s units were down 2.7%, and Gartner said he was down 10.2%.
IDC has been more correct about Apple than Gartner in recent quarters, and Apple’s performance, like most discussions of tech companies and stocks over the past few years, betting on Tim Cook is a strong course of action this year. suggests that it will be But the news isn’t all that good for the rest of his PC industry.
These companies were celebrating early in the COVID-19 pandemic. Businesses bought new devices to send to workers stuck at home, and families bought new computers for students studying at home. The PC industry experienced a sales growth boom unlike any other in its history, and it ended almost as fast as it began.
Read more about Thérèse’s pandemic PC boom and its legacy
In the first half of 2022, PC inventory levels began to rise, becoming a market bottleneck. HIGH DEMAND AND SUPPLY TO 2021 A short supply of PCs caused by disruptions in his chain quickly turned into an oversupply as demand slowed rapidly and significantly. It may take longer for that dynamic to turn around.
However, it’s worth pointing out that total shipments in 2022 are 292.3 million units according to IDC and 286.2 million units according to Gartner, still above pre-pandemic shipment levels. For example, according to IDC, he shipped 268 million PCs in 2019.
Whichever data set investors read, it’s clear they weren’t prepared to handle some of the losses, especially at Dell, whose stock fell 4% on Wednesday. HP fell 0.9% for him and Apple rose 2% for him. Lenovo’s shares fell 1% on Wednesday, but trading has yet to open on Thursday in Hong Kong.
The PC business was doing well for as long as it lasted, but now, like other technologies, it’s looking for ways to hide and restart its growth trajectory. Don’t expect it to happen in the first six months of the year, it won’t be until 2024.