PC market’s record fall stirs headwinds for Intel, AMD

PC market’s record fall stirs headwinds for Intel, AMD

Market news |
By Peter Clarke

The global PC market saw a record drop in shipments in the 3Q22 as cautious IT spending by business joined existing weakness in consumer and education, says Canalys.

Total shipments of desktop and notebook computers fell year-on-year by 18 percent to 69.4 million units. The adverse macroeconomic and industry factors are likely to persist into 2023, the market research firm said.

Notebook shipments suffered the most, posting a year-on-year decline of 19 percent with 54.7 million units shipped. Desktop shipments proved more robust due to less reliance on consumer spending, falling 11 percent year-on-year for a total of 14.7 million units.  

Worldwide desktop and notebook computer shipments 1Q20 to 3Q22. Source: Canalys.

“While the Q3 shipment volume remains comparable to pre-pandemic figures, the rapid deterioration in demand across all segments is a worrying sign not only for vendors, but for stakeholders across the supply chain,” said Ishan Dutt, senior analyst at Canalys, in a statement. “Intel and AMD are facing headwinds from weakness in their PC businesses, and smaller makers of components from ICs to memory are cutting production and lowering earnings forecasts.

Canalys said business IT spending is extending refresh cycles because of global economic uncertainty. However, that pushing out of spending cannot be indefinite and higher specification PCs will be an essential support to business going forward. The need to replace older PC equipment means Canalys expects to see a recovery by the 2H23.

The ranking of vendors remains the same with Lenovo, HP, Dell, Apple and Asus responsible for about 80 percent of sales. In the latest quarter Apple increased its sales and took market share from other companies.

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