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Australian PC Market Down 19.1%

Australia’s PC market continues to crash, with shipments down 19.1 per cent during the first three months of 2023.

This is according to the International Data Corporation Worldwide Quarterly Personal Computing Device Tracker, which credits a decline in consumer demand, growing inflation concerns, and excess inventory levels.

The consumer segment drops a whopping 33.3 per cent, year-on-year, while the commercial segment was steady, dropping by a modest 2.1 per cent.

Less than one million PCs were shipped during the first three months of the year, with the IDC tracker noting a fall to just 996,000 from 1.23 million a year prior.

“The macroeconomic environment is currently experiencing high levels of inflation, and increasing interest rates, which is impacting PC demand from both commercial and consumer segments,” said Sharmishtha Bhatt, Lead Analyst PC Devices Research at IDC Australia.”

The biggest declines were felt by Lenovo, whose shipments dropped 30.5 per cent due to excess inventory; Acer, who saw shipments down by 19.4 per cent; and Apple who fell 18.7 per cent due to low shipments of M2 processor-based PCs, which cannot compete pricewise with Apple computers featuring the M1.

HP shipped the most PCs, dropping just 4.1 per cent, primarily due to the decline in demand from consumer, education, and small business segments.

Dell Technologies saw a 9.3 per cent, year-on-year, remaining in second place, due to a slowdown in consumer spending, plus a fall in SMB business and education spend.

IDC predicts an overall 14.4 per cent sector drop in 2023.

“The end-of-financial-year sales in June are expected to provide some relief for the 2Q23 market, but overall, the market is still likely to experience significant stress,” Bhatt notes, while pointing to “some positive signs” the market may recover in the second half of the year.



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