Apple's Q1 Struggle: Leading the PC Market's Downturn in Shipment Numbers

International Data Corporation's preliminary results suggest that the global shipment of traditional PCs declined 29% year-on-year to 56.9 million in the first quarter of 2023 due to weak demand, excess inventory, and a worsening macroeconomic climate.
The PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter despite heavy discounting.
Apple Inc AAPL shipments clocked the highest decline of 40.5%, followed by Dell Technologies Inc DELL.
Other companies reporting decline included Lenovo Group Ltd LNVGF, Asustek Computer Inc, and HP Inc HPQ.
The pause in growth and demand also gives the supply chain some room to make changes as many factories explore production options outside China.
Meanwhile, PC makers are also rejigging their plans for the remainder of the year and have begun to pull in orders for Chromebooks due to an expected increase in licensing costs later this year.
"By 2024, an aging installed base will start coming up for refresh," said Linn Huang, research vice president of Devices and Displays at IDC.
"If the economy is trending upwards by then, we expect significant market upside as consumers look to refresh, schools seek to replace worn down Chromebooks, and businesses move to Windows 11. If recession in key markets drags on into next year, recovery could be a slog."
Price Action: AAPL shares traded lower by 1.18% at $162.73 premarket on the last check Monday.