The global personal computer market witnessed a fall of 16 percent in 2022 as it battled a bad economic environment with rising energy costs and interest rates, as per a report by market research firm Canalys. The total shipments in 2022 were 285.1 million units. The total shipments of desktops and notebooks were down by 29 percent to 65.4 million units in the fourth quarter of 2022, though notebook shipments fell by 30 percent to 51.4 million units. Lenovo possesses the lion’s share of the worldwide PC shipment, followed by HP, Dell, Apple, and Asus in the top five positions. Global PC sales enjoyed massive growth during COVID-19 pandemic and the shipment volumes in 2022 are still favourable compared to the pre-pandemic period.
The report by Canalys said that total shipments of desktops and notebooks have declined by 29 percent to 65.4 million units in Q4 2022 in the backdrop of a global recession, increased inflation and higher interest rates. The total shipments in the whole year were 285.1 million units, marking a 16 percent drop as compared to the high demand in 2021 induced by the coronavirus pandemic that encouraged remote working. However, shipment volumes are promising as compared to the pre-pandemic phase, with total 2022 shipments 7 percent higher than in 2019.
The notebook shipments also fell by 30 percent to 51.4 million units in the last quarter of 2022 and 19 percent to 223.8 million units for the full year. While sales of desktops fell 24 percent to 14.1 million units in the fourth quarter and dropped 7 percent to 61.3 million units across the year.
In terms of market share, Canalys’s report shows that Lenovo continued to lead the market in the fourth quarter and full year. With shipments totalling 15.5 million units, the Chinese company grabbed a market share of 23.9 percent in 2022 with a 29 percent year-on-year decline.
HP remains the second larger contributor by shipping 13.2 million units and it faced a drop of 29 percent in Q4. In the full year, HP got a market share of 19.4 percent.
Dell, in the third position, faced a worse decline with a fall in shipments by 37 percent to 10.8 million units. Total shipments in 2022 were also down by 16 percent to 49.7 million units. The American-based company got 17.4 market share in the previous year.
Apple and Asus came in the fourth and fifth positions with 9.5 percent and 7.2 percent market shares, respectively, in 2022. As per the report, the Cupertino giant shipped 27.2 million Mac units in 2022, while Asus shipped 20.2 million units.
The Canalays report shows that all manufacturers in the top five positions saw a decline in shipments with Apple and Asus least affected.
Canalys said that the mute holiday season spending due to a bad economic environment, rising interest rates, slowdowns in hiring and expectations of a recession are intercepting demand for notebooks, desktops, and workstations.
Canalys Senior Analyst Ishan Dutt opined that the decline is especially stark as the corresponding period in 2021 brought about record shipments of notebooks and desktops. Vendors and retailers aimed to stimulate consumer spending with heavy discounting, but despite pockets of success, this was not enough to drive significant new sell-in. “With rising costs for energy and basic goods in key markets like the US and Europe, expenditure on big-ticket items like PCs has taken a back seat as consumers are prepared to delay refreshes. Meanwhile, on the commercial front, both public and private sector budgets faced tightening amid rising interest rates, slowdowns in hiring and expectations of a recession early this year,” he added.
The research company predicts that the PC market will witness recovery in late 2023, with momentum picking up in 2024. “This will be bolstered by an education demand bump in major markets as devices deployed during the pandemic peak reach the end of their life cycle. And even during the downturn, there will be areas that can deliver success for the industry, such as gaming, connected PCs and hybrid work, all of which were highlighted by announcements at CES 2023,” he added.
Article Source: Gizbot