PC shipments drop as supply and demand both waver

Analysts say the decline was 'worse than expected'

Worldwide PC shipments dropped 15.3 per cent year over year to 71.3 million units in the second quarter of 2022 as demand begins to weaken post-pandemic.

That is according to research firm IDC, whose new report marks the second consecutive quarter of lower shipments following two years of growth.

Analysts say the decline was "worse than expected" as lockdowns in China and macroeconomic headwinds saw supply and logistics problems further deteriorate.

"Fears over a recession continue to mount and weaken demand across segments," said Jitesh Ubrani, research manager for IDC's Mobile Device trackers.

"Consumer demand for PCs has weakened in the near term and is at risk of perishing in the long term as consumers become more cautious about their spending and once again grow accustomed to computing across device types such as phones and tablets."

But despite weakening demand, IDC notes the total PC volume is still comparable to the beginning of the pandemic when volumes reached 74.3 million in the second quarter of 2020.

It also said the market is still "well above pre-pandemic levels" as volumes in the second quarter of 2018 and 2019 were 62.1 million and 65.1 million units respectively.

"With education PC appetite saturating and consumer demand stagnating, the US PC market is staring at another quarter of double-digit decline across most segments," said Neha Mahajan, research manager with IDC's Devices and Displays team.

"Commercial PC demand is also showing signs of a slowdown, however there are still pockets of growth expected in certain commercial sub-segments where demand for low-mid range Windows devices remains active and unfilled."

Data shows Lenovo held onto to the top spot for the number of units shipped in the second quarter at 17.5m, taking 24.6 per cent of the market share.

HP were sat in second with 13.5m shipments, with Dell in third with 13.2m units shipped.

However, Apple slipped into the fifth position behind Acer as production dipped during the quarter.

Barring any further supply issues, IDC expects Apple to ramp up its production in the second half of the year.