In Canalys' analysis of the first quarter of this year, it was found that there were 11.4 million units of notebooks shipped and 2.7 million units of desktops shipped. Unfortunately, both categories witnessed a decrease in shipments compared to the previous year, with notebooks declining by 31 percent and desktops declining by 28 percent.
On the other hand, the tablet market displayed greater resilience, experiencing a relatively modest decrease in shipments of only 7 percent, totaling 10.8 million units. It is worth noting that Apple's iPad played a substantial role in bolstering the tablet sector, recording its highest shipment numbers in the two previous quarters, surpassing the performance achieved since the first quarter of 2021.
Ishan Dutt, who holds the position of Principal Analyst at Canalys, emphasized the combination of different elements that played a role in the decline of the US PC market in early 2023. He pointed out that the expected decrease in demand following the holiday season aligned with the conclusion of inventory adjustments in the distribution channel. Consequently, the sale of PCs was subdued. Additionally, businesses have been confronting economic challenges, along with multiple increases in interest rates from the year's start till date. This situation has prompted budget-conscious organizations to prolong the use of their current PCs, focusing solely on essential upgrades.
While the tablet market experienced a modest decline overall, Apple's iPad demonstrated growth in shipments. Comparing the year 2023's first quarter to the same period the previous year, iPad shipments increased from 4.4 M to 5.4 M units, representing a growth rate of 20.5 percent. In contrast, TCL was the only other tablet company to witness growth, although the increase was a mere 0.9 percent, pale in comparison to Apple's performance. Companies such as Amazon, Samsung, and Microsoft, on the other hand, saw a decline in tablet shipments, with Microsoft experiencing the most significant drop of 30.4 percent.
In the realm of PCs, there was a notable absence of year-over-year growth across all companies. Surprisingly, Apple encountered the most severe decline in the PC market, experiencing a -35.8 percent negative yearly growth rate. Following closely behind, Lenovo faces a decline of -35 percent. However, HP performed relatively better, demonstrating greater resilience amidst market challenges, with a growth rate of -13.2 percent.
Given the rise in interest rates and the current economic challenges faced by Germany, a prominent force in Europe, there is a looming possibility that other advanced economies might also face a downturn. This potential slowdown could have implications for Canalys' projection of a recovery in the US PC market, although the ultimate outcome can only be determined with the passage of time.
In conclusion, the US PC market seems to have reached its lowest point and is now positioned for a recovery in the fourth quarter of the year. While notebook and desktop shipments have declined, the tablet market, led by Apple's iPad, has shown more resilience. The challenges faced by businesses and economic pressures have contributed to the slowdown in PC sales, with organizations opting for critical upgrades and extending the life cycle of their existing devices. As the market evolves, industry players will closely monitor the impact of external factors and adapt their strategies accordingly.
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by Ayesha Hasnain via Digital Information World
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