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PC Market Dives As Buyers Move Back To Value Machines

The PC market that was good to retailers in Australia during COVID despite shortages, is now struggling to grow sales with market leader HP sales slumping 27% according to the latest Gartner research, despite the slump the market is still ahead of pre COVID sales.

The big winner overall appears to be Dell whose global share only dropped 5.2% Vs Lenovo’s 12.5% and Acers 18.7%.

In Australia Apple prioritised sales of their MacBooks to their own stores as well their online operation creating a MacBook supply problem for major CE retailers, this strategy saw Apple grow share 9.3% according to IDC who claim that the overall market is down 15.3% overall.

According to retailers that ChannelNews has spoken to in Australia the slump in sales is not all bad news as purchasers gravitate to premium notebooks over mid-market or value notebooks during COVID, however in recent week consumers appear to have gone back to value notebooks.

A Harvey Norman franchisee said “A lot of people working from home are now getting an allowance or contribution to buy a new laptop, as a result they are gravitating to better quality device. At the same time, they are looking for laptops that are good for gaming”.

According to retailers the sweet spot for notebooks was around $2,300 to $2,500.

During the last quarter Lenovo took top spot, shipping around 1.78 million units with a 24.8% market share.

HP came in second with 1.35 million units which delivered an 18.8% share. Dell sold 1.32 million for 18.5% share.

Ironically the market is only back to 2019 levels when volumes reached 74.3 million in the second quarter of 2020 and is also still well above pre-pandemic levels.

IDC’s Devices and Display Team head Neha Mahajan claimed, “with education PC appetite saturating and consumer demand stagnating, the PC market is staring at another quarter of double-digit decline across most segments”.

“Commercial PC demand is also showing signs of a slowdown, however there are still pockets of growth expected in certain commercial sub-segments where demand for low-mid range Windows decides remains active and unfilled.”


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