PC Industry Faces Major Decline, Apple Hit the Hardest

By: Rohit Yadav

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Updated on: 12-Apr-2023

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Despite all major manufacturers experiencing a decrease in double digits, Apple seems to have been impacted the most. IDC observed a drop of 40.5%, and Canalys reported a decline of 45.5%. Additionally, both research firms indicate that Apple's market share has reduced by one to two percentage points.

The decline in Mac shipments was not unexpected as Apple had already reported a 29 percent drop in the previous quarter and had warned of significant declines. However, this decline is not unique to Apple as the entire PC industry has been experiencing a decrease in shipments for several quarters now. Canalys reported that the first quarter of 2023 marked the fourth consecutive quarter of double-digit annual declines for PC makers in general.

There are a few factors contributing to this decline. One is the end of the surge in demand that occurred over the past few years as people stocked up on computer hardware to work and study from home during the pandemic. However, IDC points out that this quarter's shipments were even lower than pre-pandemic levels, indicating that there are other factors at play. It is likely that broader economic uncertainty is also a factor, with Ishan Dutt from Canalys citing interest rate increases in the US and Europe as another reason for reduced demand.

According to both IDC and Canalys, demand for computers is expected to increase in the latter half of 2023 and in 2024. IDC's Linn Huang explains that as an ageing installed base comes up for a refresh by 2024, there will be significant market potential if the economy continues to trend upwards. This will be driven by consumers seeking to upgrade their devices, schools replacing worn-out Chromebooks, and businesses transitioning to Windows 11. However, Huang warns that if a recession persists in key markets into next year, the recovery could be challenging.