PC Shipments Drop 28% Over Holidays as Pandemic Boom Ends

In a nutshell: The pandemic boom in the PC market has come to an end, as evidenced by the latest market report from International Data Corporation. Global traditional PC shipments fell to 67.2 million units in the fourth quarter of 2022. This is 28.1 percent less than the same period in 2021 and is comparable to the fourth quarter of 2018, when Intel was in no hurry to ship processors.

Lenovo led the fourth quarter with 15.5 million PCs shipped, followed by HP with 13.2 million units. Dell came in third with 10.8 million systems shipped during the holiday quarter, while Apple sold 7.5 million Macs during the same period. All of them showed negative growth compared to the fourth quarter of 2021.

During the year, 292.3 million devices were shipped. market significantly higher than pre-pandemic levels. However, there is cause for concern as IDC notes that many users have relatively new PCs and the global economy is not in the best shape.

As Adobe noted in its recent holiday shopping analysis, retailers turned to discounts in the fourth quarter to spur demand. The PC industry was not immune as the average selling prices (ASP) across multiple channels fell in hopes of moving excess inventory.

IDC research manager Jitesh Ubrani noted that despite efforts, inventory management will remain a key issue in the coming quarters and may continue to affect ASP.

According to the research firm, the general consensus is that segments of the PC market could return to growth by the end of 2023, with a broader market recovery to follow sometime in 2024.

Earlier this week, Microsoft ended support for Windows 7 and Windows 8, which could boost sales in the near future. Windows 7’s global market share as of December 2022 was 11.2 percent. StatCounter while Windows 8 was installed on just 0.66% of computers worldwide.

Windows 10, which has a market share of almost 68 percent, is also not that far from reaching end-of-life status. Microsoft has set a date of October 14, 2025 for its retirement.

Image credit: March Production

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