The year 2023 brought unprecedented challenges to the tech industry, as global PC sales experienced a significant 14% decline, echoing the impact of weakened commercial and consumer demand. A recently published report by Counterpoint Research sheds light on the intricate dynamics that contributed to this downturn and hints at the potential resurgence on the horizon.
A recent report from Counterpoint Research reveals a 14% year-on-year decline in global personal computer shipments in 2023, primarily attributed to sluggish demand from both commercial and consumer sectors. Despite numerous product launches in the latter half of the previous year, these did not contribute significantly to sales as most are slated for shipping in 2024.
Leading the market were Chinese manufacturer Lenovo and its US counterpart, Hewlett-Packard, with market shares of 24% and 21%, respectively. Dell held a 16% market share, while Apple secured 9%. The rankings remained consistent throughout the year due to subdued demand and inventory adjustments hampering shipment performance.
In the fourth quarter of 2023, PC shipments experienced a marginal 0.2% annual drop, totaling 65.1 million units. This marked the eighth consecutive quarter witnessing a year-on-year decline. Lenovo, HP, Dell, Apple, and Asus emerged as the top five sellers in the December quarter.
Despite the year-end holiday season failing to spur a significant recovery, both original equipment manufacturers (OEMs) and original design manufacturers (ODMs) anticipate a revival in shipment momentum in the first half of 2024. The report emphasizes the potential resurgence driven by artificial intelligence-powered PCs, as highlighted at CES 2024, expecting these advancements from Intel and AMD to play a pivotal role in shaping the industry’s trajectory.
The healthy inventory levels of key players at the end of 2023 set the stage for a dynamic market. As the global PC market eyes a rebound in the first half of 2024, the strategic interplay of AI PCs and the commercial replacement cycle is anticipated to usher in a dynamic year ahead. Intel, Qualcomm, and other PC CPU manufacturers are closely collaborating with device makers to introduce next-generation mainstream models, with a flurry of product launches expected in 2024. Counterpoint predicts that AI PC sales will constitute 50% of the overall market share next year.
Unveiling the Numbers:
Counterpoint’s report reveals that the drop in global PC sales was largely a consequence of subdued demand from both commercial enterprises and individual consumers. Despite several product launches in the latter half of the year, these failed to stimulate sales due to delayed shipping schedules, with the majority set to hit the market in 2024.
Market Leaders and Shifting Tides:
The report identifies Chinese giant Lenovo and its US counterpart Hewlett-Packard as the front-runners in the market, securing 24% and 21% market shares, respectively. Dell claimed a 16% share, while Apple held 9%. Interestingly, the rankings remained static throughout 2023, with soft demand and inventory adjustments hindering overall shipment performance across the industry.
Quarterly Insights:
In the fourth quarter of 2023, PC shipments experienced a modest 0.2% annual drop, totaling 65.1 million units. Lenovo, HP, Dell, Apple, and Asus emerged as the top five sellers during this period, indicating a semblance of stability in the face of a prolonged decline.
The Road to Recovery:
Despite the gloomy figures, there is a glimmer of hope for the industry. Counterpoint’s report suggests that both original equipment manufacturers (OEMs) and original design manufacturers (ODMs) are optimistic about a revival in shipment momentum in the first half of 2024. The anticipation is bolstered by the potential impact of artificial intelligence-powered PCs, a focal point of discussion at CES 2024.
AI and the Future:
As the global PC market braces for a potential rebound in 2024, artificial intelligence (AI) is emerging as a key driver of change. Intel and AMD advancements are expected to lead the charge, with a slew of next-generation mainstream models in the pipeline. Counterpoint predicts that AI PC sales will constitute a substantial 50% of the overall market share in the coming year.
The 2023 dip in global PC sales serves as a poignant reminder of the industry’s resilience in the face of evolving challenges. As we look toward 2024, the interplay of market recovery, AI-powered innovations, and strategic product launches promises a dynamic landscape. The tech industry, adept at navigating uncertainties, remains poised for a resurgence, driven by cutting-edge technologies and a renewed focus on meeting the evolving needs of consumers and businesses alike.
