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The Zacks Analyst Blog Highlights HP, Dell, Apple and Lenovo

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For Immediate Release

Chicago, IL – October 12, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: HP Inc. (HPQ - Free Report) , Dell Technologies (DELL - Free Report) , Apple (AAPL - Free Report) and Lenovo (LNVGY - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

PC Shipments Decline in Q3 on Lower Demand, Economic Woes

The decline seen in personal computer (PC) shipments in the first half of 2022, after two consecutive years of strong year-over-year growth, aggravated in the third quarter, according to the latest data compiled by market research firm, Gartner.

Per the preliminary data released by Gartner, PC shipments in the September quarter plunged 19.5% year over year to 68 million units. The independent research firm claims the decline to be the sharpest since it has been tracking the PC market since the mid-1990s.

Why Did PC Shipments Fall in Q3?

Gartner opines that the year-over-year decline was mainly due to weakening consumer demand for PCs, supply-chain issues and high inventory levels. Softening IT spending amid the ongoing economic and geopolitical uncertainties resulted in a decline in demand for PCs.

Computer - Mini computers Industry 5YR % Return

In 2020 and 2021, PC manufacturers had benefited from increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated the use of PC systems, be it for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.

However, the recent back-to-back three quarters of declining PC shipments depict an end of the demand boom for the industry. We believe that consumers have become more cautious about their spending due to inflationary pressure and fears of a possible recession.

The drastic decline in PC shipments was also due to a steep downturn in Chromebook demand as the reopening of schools and colleges across the majority parts of the world weakened the necessity for education on PCs. Gartner noted that despite massive promotions and price drops, back-to-school sales were disappointing as many consumers had purchased new PCs in the last two years.

Gartner in its report pointed out that though supply-chain challenges have eased somewhat, higher inventory level has become a major issue due to softened demand for consumer as well as commercial PCs.

Additionally, Gartner pointed out that several PC manufacturers’ decision to halt business operations in Russia due to its attack on Ukraine severely affected PC shipment volumes in the quarter.

Vendor-Wise PC Shipments

Gartner revealed that all vendors registered steep year-over-year declines in their PC sales volumes. Per the data compiled by Gartner, HP Inc. registered the highest fall of 27.9% to 12.71 million units, followed by Acer’s 25.6% to $4.49 million PCs.

Dell Technologies’ PC volumes plunged 21.1% to 12.02 million units, while Apple registered a 15.6% year-over-year decline in shipments to 5.8 million units. Lenovo shipments contracted 15.3% to 17.11 million, while Asus witnessed a 7.5% decline to 5.56 million units.

Per Gartner, Lenovo continues to hold the top spot in the vendor list, followed by HP and Dell, with a market share of 25.2%, 18.7% and 17.7%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 8.5%, 8.2% and 6.6%, respectively.

Among the leading vendors, Apple carries a Zacks Rank #3 (Hold), while Dell has a Zacks Rank #4 (Sell). HP and Lenovo each carry a Zacks Rank #5 (Strong Sell). Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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