PC Market Expected to Recover After 8 Quarters of Decline

The worldwide PC market experienced a decline of 9% in shipments in the third quarter of 2023, marking the eighth consecutive quarter of decline.

However, there is hope for a recovery in the fourth quarter of 2023, Gartner said in a Monday (Oct. 9) press release.

The decline in PC shipments has been primarily attributed to weak enterprise demand, according to the release. However, there has been some growth due to seasonal demand from the education market. Vendors have also been successful in reducing PC inventory, and it is expected to return to normal levels by the end of 2023, assuming holiday sales remain stable.

“There is evidence that the PC market’s decline has finally bottomed out,” Mikako Kitagawa, director analyst at Gartner, said in the release.

Lenovo maintained its position as the top vendor in the global PC market, with a 25.1% market share, according to the release. HP exhibited year-over-year growth, while Dell reported a decline in shipments for the sixth consecutive quarter. Apple experienced a sharp decline in shipments compared to the previous year, largely due to increased shipments in the third quarter of 2022 after supply disruptions caused by China’s lockdown had eased. ASUS and Acer also saw decreases in shipments, while other vendors collectively experienced an 18.3% decline.

Market research firm IDC reported earlier this year that the PC market had seen a “precipitous drop” in shipments. In April, the firm attributed the decline to weak demand, excess inventory and a worsening macroeconomic climate. IDC said at the time that PC shipments could improve in the long term if the world economy picks up and people begin to think about upgrading their computers.

Looking ahead, Gartner said in its Monday press release that it projects a 4.9% growth for the worldwide PC market in 2024, with growth expected in both the business and consumer segments, according to the press release.

“The good news for PC vendors is that the worst could be over by the end of 2023,” Kitagawa said in the release. “The business PC market is ready for the next replacement cycle, driven by the Windows 11 upgrades. Consumer PC demand should also begin to recover as PCs purchased during the pandemic are entering the early stages of a refresh cycle.”

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