AAPL - PC market expected to show recovery in Q4 of this year Gartner says

2023-10-09 18:41:11 ET

Personal computer market is expected to begin recovery in the fourth quarter of this year, said research firm Gartner.

While preliminary results by Gartner shows that worldwide shipment of PCs decreased 9% to 64.3M units in Q3, marking the eighth consecutive quarters of decline, Director Analyst at Gartner Mikako Kitagawa said that there is evidence that the decline has finally bottomed out and the worst could be over by the end of 2023.

“Seasonal demand from the education market boosted shipments in the third quarter, although enterprise PC demand remained weak, offsetting some growth,” said Kitagawa.

Kitagawa also added that vendors made progress towards reducing PC inventory and inventory is expected to return to normal by the end of 2023, as long as holiday sales do not collapse.

Dell ( DELL ) and China’s Lenovo Group saw a 14.2% and 4.4% decline in shipments in Q3, while HP ( HPQ ) was the only company to exhibit year-over-year growth, with shipments increasing across all regions, according to the report.

“Apple's ( AAPL ) shipments declined sharply compared to a year ago, in part because its shipment volume increased significantly in 3Q22 once supply disruptions from earlier in 2022 due to China's lockdown had eased.” the firm said .

Although the consumer electronic markets got a boost from the pandemic, the supply chain constraint and an uncertain economy dampened demand, leading to a weak recovery.

Gartner is now projecting 4.9% growth for the worldwide PC market for 2024, with growth expected in both the business and consumer segments.

“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,” Gartner added.

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