Apple’s worldwide computer shipments fell 40.5% year over year Q12023 owing to factors like weak demand, excess inventory, and a poor macroeconomic climate. The global shipments of computers saw a decline of 29% compared to the same quarter in 2022 with companies like Asus, Dell, Lenovo, and HP all showing a downfall but Apple’s decline was the biggest of all.
Apple’s global market share in the PC industry experienced a decline from 8.6% to 7.2% between the first quarter of 2022 and the first quarter of 2023. In the same period, the company’s shipment of devices dropped by 2.8 million units year over year, as reported by IDC.
IDC’s research vice president Linn Huang at Devices and Displays has predicted that if the economy is doing well by 2024, then there will likely be a considerable market growth opportunity for these companies as consumers, schools, and businesses will look for the replacement or upgrade of their devices. This may lead to an increased demand for new products and services, which will could result in a positive market trend.
However, if the economy is not doing well, the recovery may be slow and difficult impacting the overall market growth opportunities. In this case, businesses may not have the financial resources to replace or upgrade their devices, and consumers may hold off on making discretionary purchases, leading to a slow market growth trend.
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In case of Apple, the company and analysts have been anticipating major production slowdown in China as COVID after-effect. Apple in February also predicted that its revenue would fall for second quarter in a row, however, iPhone sales were likely to improve as production returned normal in China.
Apple this year reported a 5% dip in its quarterly revenue at $117.2 billion, its first quarterly fall in revenue in nearly four years. However, with COVID-restrictions now being eased off, the company expects improved prospects for the iPhones.