PC Maker Deliveries Tank, With Apple Most Affected

All five of the world’s largest computer makers – Apple, ASUS, Dell, HP and Lenovo – reported double-digit falls in first-quarter shipments, reflecting weaker demand and persistent inventory woes. 

Apple’s decline was the biggest, falling more than 40%. The company’s worldwide PC market share fell between the first quarter of 2022 to the first quarter of 2023 from 8.6% to 7.2%, with the company shipping 2.8 million fewer devices year-on-year in the first quarter of 2023.

Mac revenue dipped 28.6% during the December 2022 quarter. Apple CEO Tim Cook has said recently that the challenging macroeconomic environment has impacted iPhone, Mac and Apple Watch sales. Apple shares were down over 1% in pre-market trading this week.

Analysts say the PC market is returning to pre-COVID demand levels. Despite heavy discounting, PC makers can expect high inventory to persist into the middle of the year and potentially into the third quarter. However, growth is expected to pick up by year-end.

Some market watchers predict that softened demand gives companies a chance to iron out supply chain kinks. This is especially relevant for Apple, which is trying to push suppliers and assemblers to move their operations beyond China. 

Apple told suppliers late last year to look beyond China and into emerging markets, such as India and Vietnam. The company cited supply-chain troubles, riots at a major manufacturing facility in Zhengzhou, and China’s then-extreme COVID-19 restrictions as reasons for the plan.