Global personal computer (PC) sales have declined the most in the last two decades in the September quarter. Shipments of desktops and laptops declined by about 19.5 percent year-on-year to about 68 million units. This is the fourth consecutive quarter of decline in PC shipments. The report of market research firm Gartner states that due to people returning to office and reopening of schools, the demand for PC has reduced in both consumer and enterprise segments. “Excessive inventory has become a major problem due to weak demand for PCs in both consumer and enterprise segments as supply chain disruptions ease,” said Gartner analyst Mikako Kitagawa. Many consumers had purchased new personal computers in the last two years and hence demand in this segment is weak. Due to tensions between some countries and weak economic conditions, companies have reduced their spending on IT and PCs are not their priority. Europe, Middle East and Africa (EMEA) witnessed the biggest decline of 26.4 percent in the September quarter. This is the third consecutive quarter of decline in sales in this region. Weak economic conditions in Europe and the war between Ukraine and Russia are impacting demand. Gartner says that many PC vendors in Russia closed their businesses in the first two quarters of this year. This has had a negative impact on total shipments and is visible in comparison on a year-on-year basis. PC sales in Asia Pacific have declined by 16.6 percent on a year-on-year basis. The main reason for this is the lockdown due to the epidemic in many cities of China. This has slowed down the business of companies and reduced the demand for personal computers in consumer, government and enterprise segments. Dell ranked first in the PC market in terms of total PC shipments. Its market share was 26.8 percent. It was followed by HP (about 23.2 percent), Apple (16 percent) and Lenovo (about 15.8 percent). Dell’s laptop shipments have declined in all regions except Japan. However, its desktop shipments have increased on a year-on-year basis in all regions except Asia Pacific.
Tag: economy
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Apple suffered a big blow due to 29 percent decline in global shipments of PC.
Global shipments of personal computers (PC) declined by 29 percent in the first quarter. The main reasons behind this are weak demand, excess inventory and uncertainty about the state of the economy. Due to this, American company Apple, which manufactures Mac computers, has suffered a big loss. Market research firm IDC reports that global shipments of PC declined to 5.69 crore in the first quarter of this year. It was Rs 8.02 crore in the same period last year. In the last quarter of last year, these shipments had declined by 28.1 percent on a year-on-year basis. Apple’s shipments declined the most in the first quarter by about 40.5 percent. The decline in shipments for Dell was 31 percent. Apart from this, Lenovo, Asustek Computer and HP have also faced decline in shipments in the first quarter. Apple had said in February that sales of its Mac computers had increased rapidly due to work from home during the pandemic. There has been a 29 percent decline in value in the last quarter on a year-on-year basis. IDC said, “The decline in demand has given device makers an opportunity to make changes in the supply chain. Many companies are exploring the possibility of increasing production outside China.” There is a possibility of slowdown in the economies of big countries. Financial crisis in some big banks and increase in inflation may hinder growth and investment. However, iPhone sales have been good for Apple. The number and value of iPhones made in India has increased in the last year. Apple is shifting production from China to diversify its supply chain and due to this the production of the company’s devices has increased in India. Recently, Counterpoint reported that shipments of iPhones manufactured in India increased by 65 percent last year on a year-on-year basis. Apart from this, the value of iPhone has increased by 162 percent. Last year, Apple’s share in the total shipments of smartphones from India was about 25 percent. About 85 percent of the iPhones sold worldwide are manufactured in China. However, this may reduce due to Apple’s efforts to shift its manufacturing out of China.