After two consecutive years of steady and agonizing declines, the PC industry is appearing to have hit rock bottom. According to the research organization Gartner, this may be looking up, which must spell some good news for the manufacturers starting from Apple to HP to Windows developer Microsoft.
“There is evidence that the PC market’s decline has finally bottomed out,”
said Mikako Kitagawa, a research director at Gartner, mentioned in his statement.
“Seasonal demand from the education market boosted shipments in the third quarter, although enterprise PC demand remained weak, offsetting some growth. Vendors also made consistent progress towards reducing PC inventory, with inventory expected to return to normal by the end of 2023, as long as holiday sales do not collapse,”
she further added.
Manufacturers of PCs have shipped 64.3 million units within Q3, which was a 9% over the years decline. Still, that is better compared to the 16.6% fall the industry witnessed in Q2.
The PC industry was hammered over the past eight quarters, thanks to the COVID-19 slowdowns, rising rates of interest, and inflation. PC companies initially were on a high during the pandemic as the consumers looked for ways to play and work from their homes during the lone periods of lockdown. But, with the lift of lockdown orders, the sales dropped off a cliff.
Inflationary pressures, along with high rates of interest, made it pretty tough for customers to find the cash for the new PCs, as both financing costs and prices increased. PC shipments eventually plummeted to the worst levels in decades.
“The good news for PC vendors is that the worst could be over by the end of 2023,”
“The business PC market is ready for the next replacement cycle, driven by the Windows 11 upgrades. Consumer PC demand should also begin to recover as PCs purchased during the pandemic are entering the early stages of a refresh cycle.”
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