Apple and HP PC shipments tumble as pandemic-era boom begins to fade

Global shipments of PCs have fallen in the first quarter of 2023 as a result of weak demand, high inventory and tough economic conditions, with Apple reporting the largest slump, according to the International Data Corporation (IDC).

Shipments of Apple PCs fell by 40.5 per cent to 4.1 million units in the quarter compared to a drop of 29 per cent for global shipments to 56.9 million, according to the report released by the market research company on Sunday. 

Other leading brands also saw a drop in PC shipments as demand, which surged during the pandemic as people shifted to home-working, started to fall away and stock piled up. Lenovo saw shipments drop by 30.3 per cent, while HP computers fell by 24.4 per cent and Dell by 31 per cent.  The IDC added that shipment volume was still “noticeably lower” than pre-pandemic levels. 

“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.

Demand for personal computers, smartphones and other devices have fallen as people have returned to the office and economic uncertainty weighs on spending.

Global smartphone shipments fell by 18 per cent to 296.9 million in the final quarter of 2022, another market research firm, Canalys, reported in January. 

In February, Apple reported a drop in quarterly revenue of 5 per cent on the same period last year, citing a “challenging environment.” Sales of iPhones and Macs were both down as production was hit by outbreaks of Covid-19 in China where Apple’s largest supplier is located.

The IDC added that the pause in shipments gave firms the chance to recalibrate their supply chains and offered tech companies the chance to explore production outside of China.

The firm added that PC shipments would likely continue to “suffer” before returning to growth towards the end of the year as global economic conditions are expected to improve and windows software is likely to need updating.