We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Global PC Shipment Falls in Q3: Recovery Expected Soon
Read MoreHide Full Article
The decline in global personal computer (PC) shipments continues for the eighth consecutive quarter, according to the latest data compiled by Gartner. Per the preliminary data released by the market research firm, PC shipments in the July-September 2023 quarter plunged 9% year over year to 64.3 million units.
Q3 Data Shows Signs of Stabilization
The third-quarter shipment data shows a strong improvement from the second quarter when PC vendors had shipped 59.7 million units. The sequential improvement in PC shipments can be seen as an initial sign of stabilization in the PC market.
Mikako Kitagawa, the Director Analyst at Gartner, stated, “There is evidence that the PC market’s decline has finally bottomed out.” She further noted, “Vendors also made consistent progress towards reducing PC inventory, with inventory expected to return to normal by the end of 2023, as long as holiday sales do not collapse.”
In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
Vendor-Wise Performance
Per the data compiled by Gartner, all top vendors, except HP Inc. (HPQ - Free Report) , registered a decline in their PC shipments in the third quarter. HP Inc. delivered 13.53 million PCs in the third quarter, reflecting a 6.4% increase from the year-ago quarter.
Apple (AAPL - Free Report) registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. The decline was mainly due to a tough year-over-year comparison as the company witnessed a strong increase in volume growth in the third quarter of 2022, driven by improved supply-chain issues due to lockdown ease in China.
Dell Technologies’ (DELL - Free Report) shipment fell 14.2% year over year to 10.32 million units, mainly due to weakness in enterprise PC demand, where it has a strong presence. Lenovo (LNVGY - Free Report) shipped 16.15 million PCs during the quarter, down 4.4% from the year-earlier quarter.
ASUS and Acer both registered a year-over-year decline in their PC shipments. While ASUS’ PC shipments fell 11.5% to 4.88 million units, Acer’s shipments dropped 2.4% to 4.39 million PCs.
Per Gartner, Lenovo continues to hold the top spot on the vendor list, followed by HP and Dell with a market share of 25.1%, 21% and 16.1%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 9.7%, 7.6% and 6.8%, respectively.
PC Market Recovery Expected Soon
Gartner pointed out that the worst could be over for vendors by the end of 2023, and PC market recovery can be seen in 2024 due to increased demand, driven by the PC refreshment cycle. Mikako stated, “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.”
Garter forecast that PC shipments would grow 4.9% in 2024, driven by increased shipments across both the business and consumer segments.
Additionally, we believe that inventories coming near healthy levels and the growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to PC demand in the years ahead.
Image: Bigstock
Global PC Shipment Falls in Q3: Recovery Expected Soon
The decline in global personal computer (PC) shipments continues for the eighth consecutive quarter, according to the latest data compiled by Gartner. Per the preliminary data released by the market research firm, PC shipments in the July-September 2023 quarter plunged 9% year over year to 64.3 million units.
Q3 Data Shows Signs of Stabilization
The third-quarter shipment data shows a strong improvement from the second quarter when PC vendors had shipped 59.7 million units. The sequential improvement in PC shipments can be seen as an initial sign of stabilization in the PC market.
Mikako Kitagawa, the Director Analyst at Gartner, stated, “There is evidence that the PC market’s decline has finally bottomed out.” She further noted, “Vendors also made consistent progress towards reducing PC inventory, with inventory expected to return to normal by the end of 2023, as long as holiday sales do not collapse.”
Computer - Mini computers Industry 5YR % Return
Computer - Mini computers Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
Vendor-Wise Performance
Per the data compiled by Gartner, all top vendors, except HP Inc. (HPQ - Free Report) , registered a decline in their PC shipments in the third quarter. HP Inc. delivered 13.53 million PCs in the third quarter, reflecting a 6.4% increase from the year-ago quarter.
Apple (AAPL - Free Report) registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. The decline was mainly due to a tough year-over-year comparison as the company witnessed a strong increase in volume growth in the third quarter of 2022, driven by improved supply-chain issues due to lockdown ease in China.
Dell Technologies’ (DELL - Free Report) shipment fell 14.2% year over year to 10.32 million units, mainly due to weakness in enterprise PC demand, where it has a strong presence. Lenovo (LNVGY - Free Report) shipped 16.15 million PCs during the quarter, down 4.4% from the year-earlier quarter.
ASUS and Acer both registered a year-over-year decline in their PC shipments. While ASUS’ PC shipments fell 11.5% to 4.88 million units, Acer’s shipments dropped 2.4% to 4.39 million PCs.
Per Gartner, Lenovo continues to hold the top spot on the vendor list, followed by HP and Dell with a market share of 25.1%, 21% and 16.1%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 9.7%, 7.6% and 6.8%, respectively.
PC Market Recovery Expected Soon
Gartner pointed out that the worst could be over for vendors by the end of 2023, and PC market recovery can be seen in 2024 due to increased demand, driven by the PC refreshment cycle. Mikako stated, “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.”
Garter forecast that PC shipments would grow 4.9% in 2024, driven by increased shipments across both the business and consumer segments.
Additionally, we believe that inventories coming near healthy levels and the growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to PC demand in the years ahead.
Of the leading vendors, Dell sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Apple and HP Inc. each have a Zacks Rank #3 (Hold). Lenovo carries a Zacks Rank #4 (Sell).