Data released from the International Data Corporation on Monday revealed that shipments for the third quarter in the personal computing market fell 15 percent as there is less demand and on going supply chain issues.
As per the data, the 15 percent decline was still above the pre-pandemic levels. Global shipments came in at 74.3 million in the quarter, down from 87.3 million in the same period last year.
HP saw PC shipments decline about 28 percent, Dell shipments were down 21% and Lenovo 16%. However, Apple went against the tide with personal computer shipments climbing 40 percent in the third quarter.
AMD had hinted at this decline in sales when it lowered its sales forecast for the third quarter last week, citing a larger-than-expected decline in the PC market and supply chain issues as the reason.
With tech companies like Microsoft and Intel set to report its third-quarter results later this month, investors will be on the lookout for signs of decline in PC shipments. While Microsoft will release results on October 25, Intel will report on October 27.
Commenting on the figures, Jitesh Ubrani, research manager at IDC’s Mobility and Consumer Device Trackers said, “Consumer demand has remained muted though promotional activity from the likes of Apple and other players has helped soften the fall and reduce channel inventory by a couple weeks across the board. Supply has also reacted to the new lows by reducing orders with Apple being the only exception as their third quarter supply increased to make up for lost orders stemming from the lockdowns in China during the second quarter.”
Linn Huang, research vice president, Devices & Displays at IDC, added, “In addition to shipment volumes, we’ll be keeping a close eye on how average selling prices (ASPs) trend this quarter. Shortages over the last several years have aggressively driven product mix shifts towards the premium end. This, coupled with cost increases of components and logistics, drove ASPs up five quarters in a row to $910 in 1Q22, the highest since 2004. However, with demand slowing, promotions in full swing, and orders being cut, the ASP climb was reversed in 2Q22. Another quarter of ASP declines indicate a market in retreat.”
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