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<\/a><\/p>\n(Reuters) -Global shipments of personal computers slumped by nearly a third in the first quarter of 2023, with Apple Inc dropping the most among the market heavyweights as the industry struggles with a post-pandemic slowdown in consumer spending.<\/p>\n
In separate reports published on Monday, market research firms IDC and Canalys blamed weak demand, excess inventory and a bleak economic outlook for the shipment declines of 29% and 33%, respectively.<\/p>\n
“Most of the issues that plagued the industry in the second half of last year have extended into the start of 2023,” Canalys analyst Ishan Dutt said.<\/p>\n
Of the top five PC makers analysed in the reports, Apple saw the largest drop with a fall of more than 40%. That was followed by Dell Technologies Inc with a drop of around 31%.<\/p>\n
Lenovo Group Ltd, Asustek Computer Inc and HP Inc also faced declines, the reports said.<\/p>\n
The data suggests that PC makers are set for another quarter of weak earnings after a 2022 that saw their sales squeezed by the end of the pandemic-driven demand boom.<\/p>\n
The pause in demand and growth, however, is giving supply chains time to stabilize after a rocky two years and for companies to explore production options outside China, IDC said. <\/p>\n
Both the research firms also predicted the market could start to recover later this year and gather momentum in 2024 if the economic outlook improves.<\/p>\n
“We expect significant market upside as consumers look to refresh, schools seek to replace worn-down Chromebooks, and businesses move to Windows 11,” IDC said. <\/p>\n
But some analysts are less optimistic, considering the crisis in the banking sector and signs that the Federal Reserve will continue on its rate-hiking path to arrest still-high inflation.<\/p>\n
“The evidence doesn’t seem to support the idea that (the recovery) is going to happen,” said Fox Advisors analyst Steven Fox, pointing to the widespread cost cuts across companies. \u00a0<\/p>\n
“We’re not looking at a crash in demand from here. We’re saying things are sluggish and are going to stay that way.”<\/p>\n
(Reporting by Bharat Govind Gautam and Tiyashi Datta in Bengaluru; Editing by Varun H K)<\/p>\n
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