According to a report by IDC, Apple\u2019s worldwide computer shipments fell by 40.5% YoY in the first quarter of 2023.<\/p>\n
This was due to a broader contraction in consumer demand. The decline in demand was seen across the five largest computer makers – Apple, ASUS, Dell, HP, and Lenovo – who all experienced double-digit drops in first-quarter shipments. Apple, in particular, saw the biggest decline of the bunch.<\/p>\n
IDC data shows that Apple\u2019s worldwide PC market share dropped from 8.6% to 7.2% between Q1 2022 and Q1 2023. In the same period, the company shipped 2.8 million fewer devices YoY. This decline was not entirely unexpected, with Apple\u2019s Chief Financial Officer Luca Maestri warning in February that Apple was expecting double-digit declines in Mac and iPad sales for the March quarter.<\/p>\n
Apple CEO Tim Cook had previously acknowledged the challenging macroeconomic environment affecting iPhone, Mac, and Apple Watch sales. During the December quarter, Mac revenue fell by 28.66% YoY. The challenging market environment for Apple was further confirmed as Apple shares closed down over 1.5% on Monday.<\/p>\n
According to the IDC report, \u201cThe preliminary results also represented a coda to the era of COVID-driven demand and at least a temporary return to pre-COVID patterns.\u201d Even with heavy discounting, IDC researcher Jitesh Ubrani predicts that channels and PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter.<\/p>\n
The IDC report also states that PC manufacturers will suffer in the near term, with growth expected to pick back up by the year-end. However, there is potential upside for PC manufacturers as weakened demand gives companies a chance to finish \u201crejigging their plans\u201d and iron out supply chain methods.<\/p>\n