PC Shipments Declined 15 Percent In Q3, Warns IDC

Apple is the only PC manufacturer that seems to be weathering the global decline in PC shipments, analyst house IDC has reported.

IDC noted that declines continued for the traditional PC market as global shipments totalled 74.3 million units during the third quarter of 2022 (3Q22).

In July IDC had warned that of a worrying decline in the shipments of PCs, amid fears of global recession. It said in the summer that PC shipments had fallen 15.3 percent in the second quarter of 2022, “as supply and demand both waver.”

PC shipments

And it seems that this PC slowdown has continued into the third quarter, according to the latest results.

IDC noted that “cooling demand and uneven supply have contributed to a year-over-year contraction of 15 percent. However, shipment volumes remain well above pre-pandemic levels when PC volumes were largely driven by commercial refreshes due to the looming end of support for Windows 7.”

“Consumer demand has remained muted though promotional activity from the likes of Apple and other players has helped soften the fall and reduce channel inventory by a couple weeks across the board,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers.

“Supply has also reacted to the new lows by reducing orders with Apple being the only exception as their third quarter supply increased to make up for lost orders stemming from the lockdowns in China during the second quarter,” said Ubrani.

“In addition to shipment volumes, we’ll be keeping a close eye on how average selling prices (ASPs) trend this quarter,” added Linn Huang, research VP, Devices & Displays at IDC.

“Shortages over the last several years have aggressively driven product mix shifts towards the premium end,” said Huang. “This, coupled with cost increases of components and logistics, drove ASPs up five quarters in a row to $910 in 1Q22, the highest since 2004. However, with demand slowing, promotions in full swing, and orders being cut, the ASP climb was reversed in 2Q22. Another quarter of ASP declines indicates a market in retreat.”

Player rankings

So who are the winners and losers in the PC market? Well it is clear that Apple (in fourth position or 13.5 percent market share) continues to do well, with a 40.2 percent increase in shipments during Q3.

However it not such good news for the first, second and third placed manufacturers.

Lenovo remains the largest player, with a market share down at 22.7 percent, and a 16.1 percent year-over-year shipment decline.

Second placed HP has a 17.1 percent market share, but a negative 27.8 percent year-over-year shipment decline.

Third placed Dell has a 16.1 percent market share, but saw a 21.2 percent year-over-year shipment decline.

The IDC shipment figures add to gloomy economic predictions about the state of the global economy.

Market analysts will be closely scrutinising the third quarter earning results from firms such as Microsoft, Intel and AMD to gain a better understanding.

Microsoft is set to release results on 25 October, while Intel will report on 27 October.