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Why the PC market is experiencing its biggest downturn since the 1990s

  • January 15, 2023
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Through 2022, the industry has seen a 16% drop in shipments compared to the previous year. The PC sector has seen its biggest drop in shipments in more

Why the PC market is experiencing its biggest downturn since the 1990s
Through 2022, the industry has seen a 16% drop in shipments compared to the previous year.

The PC sector has seen its biggest drop in shipments in more than 20 years at the end of 2022, a situation that will later affect sales due to lower supply in stores and which has arisen due to various reasons such as the current economic situation. and pandemic.

According to GartnerPC shipments fell 28.5% in the fourth quarter of 2022 compared to the same period last year, according to a market consultancy.

The same thing happens when you put the total number of shipments in 2022 in 2021, which is down 16.2%. What represents the biggest crisis in this industry since the 90s and it may last longer.

“The computer industry has experienced some very unusual ups and downs over the past 11 years. “After an extraordinary period of growth between 2020 and 2021 due to the pandemic, the market has clearly started a downward trend that will continue until the beginning of 2024,” he said. Mikako KitagawaDirector of the company responsible for research.

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Through 2022, the industry has seen a 16% drop in shipments compared to the previous year.

What are the fall factors?

To achieve this situation, the computer market has suffered due to various reasons. During 2021, brand discourse focused on the fact that device production was limited due to low internal component counts, which may have been a side effect of the year just ended.

But in the big picture, the analysis performed by the query includes little interest People to buy a new computer. This is because 2020 and 2021 will see exponential growth due to the need to increase the number of computers in the home for remote work and learning, in addition to serving as an entertainment center for video games and multimedia content.

This forces current users to be satisfied with the computer they have at home, and its performance is still adequate, so there is no need to replace it two years after its purchase.

“With many consumers already owning relatively new PCs bought during the pandemic, the lack of affordability is replacing any motivation to buy, causing PC demand to fall to its lowest level in years,” he said. Kitagawa.

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Through 2022, the industry has seen a 16% drop in shipments compared to the previous year.

In addition to the lack of interest in upgrading their equipment for this reason, there are other reasons that are more technical, as they also note that there is low innovation in the sector and offer few differential value propositions, especially in home computers. consumption.

Added to this is the current economic crisis caused by inflation in several countries and the fluctuation of the dollar, which makes people and companies think more about the need to upgrade their computers, given the possibility of a global cancellation.

The effects of this situation are already reflected in the situations you are experiencing Intel, A company that makes processors that had to cut 20% of its staff in the areas of marketing and sales, due to the fact that some partners, such as Lenovo, Dell and HP It’s underperforming in sales, hurting the chipmaker’s bottom line.

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Source: Info Bae

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