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Global PC Shipments Jump in Q4: Can Sales Rebound in 2024?
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The U.S. PC market is finally rebounding after witnessing a decline in sales for several quarters. Although year-over-year sales are still down, the good sign is that sales are rebounding as inflationary pressures ease and consumers’ confidence in the economy strengthens.
According to the latest report from Gartner, global PC shipments totaled 63.3 million units in the fourth quarter of 2023, increasing for the first time after eight consecutive quarters of decline.
For the year, global PC shipments totaled 241.8 million units, down 14.8% year over year from 2022. Sales were dominated by the market leaders and the top six sellers held on to their positions. However, the performances were mixed.
Lenovo Group Limited (LNVGY - Free Report) recorded solid year-over-year sales growth. LNVGY shipped 16,213 units and was the top seller with 25.6% of the market share.
HP Inc. (HPQ - Free Report) held the second spot. HPQ shipped 13,954 units. HP has a market share of 22%, which is up year over year from 20.9%.
Dell Technologies Inc (DELL - Free Report) held the third position. DELL shipped 9,983 units in the fourth quarter of 2023. Dell Technologies commanded 15.8% of the market share in the fourth quarter, down from 17.2% a year ago.
Analysts believe that PC sales are finally picking up, and demand and supply are finally balanced.
“The PC market has hit the bottom of its decline after significant adjustment,” Mikako Kitagawa, Director Analyst at Gartner, said.
“Inventory was normalized in the fourth quarter of 2023, which had been an issue plaguing the industry for two years. This subtle growth suggests that demand and supply are finally balanced. However, this situation will likely change due to the anticipated component price hike [in] 2024, as well as geopolitical and economic uncertainties,” Mikako added.
The PC market took a hit in 2022 as soaring commodity prices started taking a toll on consumer spending. Consumers started spending cautiously and cut down on expensive items as the Federal Reserve launched its monetary tightening campaign to bring down 40-year high inflation.
This saw the Federal Reserve hiking interest rates by 525 basis points since March 2022, which finally started paying off late last year as inflation declined sharply.
This once again saw demand rebounding. The picture looks a lot brighter for the PC market now. According to a recent forecast by Canalys, PC shipments are projected to hit 267 million in 2024, an increase of 8% from 2023, as the global economy improves and users consider upgrading to Windows 11.
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Global PC Shipments Jump in Q4: Can Sales Rebound in 2024?
The U.S. PC market is finally rebounding after witnessing a decline in sales for several quarters. Although year-over-year sales are still down, the good sign is that sales are rebounding as inflationary pressures ease and consumers’ confidence in the economy strengthens.
According to the latest report from Gartner, global PC shipments totaled 63.3 million units in the fourth quarter of 2023, increasing for the first time after eight consecutive quarters of decline.
For the year, global PC shipments totaled 241.8 million units, down 14.8% year over year from 2022. Sales were dominated by the market leaders and the top six sellers held on to their positions. However, the performances were mixed.
Lenovo Group Limited (LNVGY - Free Report) recorded solid year-over-year sales growth. LNVGY shipped 16,213 units and was the top seller with 25.6% of the market share.
HP Inc. (HPQ - Free Report) held the second spot. HPQ shipped 13,954 units. HP has a market share of 22%, which is up year over year from 20.9%.
Dell Technologies Inc (DELL - Free Report) held the third position. DELL shipped 9,983 units in the fourth quarter of 2023. Dell Technologies commanded 15.8% of the market share in the fourth quarter, down from 17.2% a year ago.
Apple, Inc. (AAPL - Free Report) shipped6,349 units and held the fourth position. AAPL had a market share of 10% in the fourth quarter, up from 9.4% a year ago. Apple has a Zacks #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Analysts believe that PC sales are finally picking up, and demand and supply are finally balanced.
“The PC market has hit the bottom of its decline after significant adjustment,” Mikako Kitagawa, Director Analyst at Gartner, said.
“Inventory was normalized in the fourth quarter of 2023, which had been an issue plaguing the industry for two years. This subtle growth suggests that demand and supply are finally balanced. However, this situation will likely change due to the anticipated component price hike [in] 2024, as well as geopolitical and economic uncertainties,” Mikako added.
The PC market took a hit in 2022 as soaring commodity prices started taking a toll on consumer spending. Consumers started spending cautiously and cut down on expensive items as the Federal Reserve launched its monetary tightening campaign to bring down 40-year high inflation.
This saw the Federal Reserve hiking interest rates by 525 basis points since March 2022, which finally started paying off late last year as inflation declined sharply.
This once again saw demand rebounding. The picture looks a lot brighter for the PC market now. According to a recent forecast by Canalys, PC shipments are projected to hit 267 million in 2024, an increase of 8% from 2023, as the global economy improves and users consider upgrading to Windows 11.