IDC said this is the sixth consecutive quarter of contraction for the industry, driven by macroeconomic challenges, sluggish demand from consumers and businesses, and a shift in IT spending away from device purchases. However, despite the disappointing performance, the market fared better than expected for the quarter.
“The market continues to be weighed down by elevated channel and component inventory,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers. “While these issues are gradually improving, many component suppliers are still offering reduced pricing to clear their inventory. However, PC manufacturers and channels remain cautious about introducing new systems due to the reduced demand.”
The persistently weak demand has led to elevated inventory levels that have remained higher than anticipated. This includes finished systems in distribution channels and throughout the supply chain.
IDC noted that no PC manufacturer has been immune to the difficulties presented by the market, with all major companies experiencing double-digit declines, except for Apple and HP Inc. Apple enjoyed a favorable year-over-year comparison as it encountered supply issues during 2Q22 due to COVID-related disruptions in its supply chain. HP has grappled with excess inventory over the past year but is now approaching normalized levels, allowing its growth rate to stand out during this downturn.
Lenovo remains on the top spot with 23.1% which is lower than the 24.5% in the second quarter of 2022. Lenovo is followed by HP, Dell, Apple, And Acer.
“Companies are wary of being caught with insufficient supply like they were in 2020 and 2021, yet they seem hesitant to fully invest in a market rebound,” said Ryan Reith, group vice president for IDC’s Client Device Trackers. “On the consumer side, we’re observing a return to pre-pandemic patterns where computing needs are spread across multiple devices, and we firmly believe that consumer spending will prioritize smartphones over PCs. On the commercial side, workforce reductions at major companies and the introduction of generative AI further complicate budget allocation in a market already facing constraints.”