Global notebook shipment for the all-important December quarter were down by more than 40 per cent compared to the previous year, as supply far outstrips demand.

Shipments fell 16 per cent from the September quarter, with Digitimes’ research into the market suggesting that things haven’t gotten any better for this current quarter.

“The consumer sector suffered high channel inventory, while demand from enterprises also plunged drastically in the fourth quarter, resulting in brand vendors significantly decelerating their order pull-ins for the quarter,” explains Jim Hsiao, from Digitimes Research.

“In addition to seasonality, with the economic downturn in mature markets in Europe and North America likely to persist and vendors’ inventory at the channel having no chance to return to a safe level anytime soon, vendors’ shipments are expected to hurt seriously in the first quarter of 2023.”

The top six brands will all have shipment declines in the current quarter, with top brand Lenovo to suffer a 15 per cent sequential fall.

Second-largest shipper Hewlett-Packard will see an over 20 per cent sequential drop, with number three Dell down 10 per cent.

Apple — currently at number four — will see the largest sequential drop despite the new MacBook Pro.

“Their increased prices in non-US markets and a lack of major hardware upgrades are making them less appealing to consumers,” Hsiao explained.

Asus and Acer will see most modest declines.

“The consumer sector suffered high channel inventory, while demand from enterprises also plunged drastically in the fourth quarter, resulting in brand vendors significantly decelerating their order pull-ins for the quarter.

“In addition to seasonality, with the economic downturn in mature markets in Europe and North America likely to persist and vendors’ inventory at the channel having no chance to return to a safe level anytime soon, vendors’ shipments are expected to hurt seriously in the first quarter of 2023.”