According to research firm IDC, Apple’s worldwide computer shipments fell by 40.5% YoY in the first quarter of 2023, reflecting a broader contraction in consumer demand.
This decline was the largest among the top five computer makers, which also saw double-digit drops in shipments due to weaker demand and persistent inventory issues.
Apple’s global PC market share dropped from 8.6% to 7.2% between Q1 2022 and Q1 2023, according to IDC data. The company shipped 2.8 million fewer devices YoY in Q1 2023, according to IDC.
Apple CFO Luca Maestri had anticipated double-digit declines in Mac and iPad sales from the year-earlier period for the March quarter, which appears to have come true.
Mac revenue had fallen by 28.66% YoY during the December quarter, as the challenging macroeconomic environment had affected the sales of iPhone, Mac, and Apple Watch. As a result, Apple’s CEO, Tim Cook, had commented that the situation was challenging.
IDC believes that the preliminary results indicate a return to pre-COVID patterns, marking the end of the era of COVID-driven demand, at least for now.
Apple Struggles as Mac Shipments Decline
All computer makers have been facing elevated inventory levels, and channels and PC makers are expected to continue experiencing high inventory levels at least until the middle of the year and potentially into the third quarter.
Even with heavy discounting, channels and PC makers are expected to struggle with the inventory woes that are currently affecting the computer industry.
The decline in computer shipments has affected Apple the most, with the largest drop among the top five computer makers.
The weaker demand and persistent inventory issues have also affected other computer makers, including ASUS, Dell, HP, and Lenovo. However, Apple’s decline was the most significant of the bunch, with its market share dropping from 8.6% to 7.2% in a year.
The fall in shipments is not entirely unexpected, as Luca Maestri had predicted double-digit declines in sales for the March quarter. The decline was primarily due to the challenging macroeconomic environment and the fading away of the era of COVID-driven demand.
Apple’s CEO, Tim Cook, had also noted that the situation was challenging and that the company was struggling with the demand-supply mismatch.
As a result of the decline in shipments, Apple’s shares fell by approximately 2% on Monday morning. However, Apple remains a strong company with a significant presence in the computer and mobile markets.
Apple’s Mac Shipments Fall
Apple’s focus on innovation and user experience has allowed the company to maintain its competitive edge, despite the challenging market conditions. Apple’s commitment to developing products that meet the evolving needs of its customers has helped the company stay ahead of its competition.
Apple’s worldwide computer shipments fell by 40.5% YoY in Q1 2023, reflecting a broader contraction in consumer demand. The decline was the largest among the top five computer makers, including ASUS, Dell, HP, and Lenovo.
IDC data shows that Apple’s global PC market share dropped from 8.6% to 7.2% between Q1 2022 and Q1 2023, and the company shipped 2.8 million fewer devices YoY in Q1 2023. However, Apple remains a strong company with a significant presence in the computer and mobile markets.
According to the IDC report, PC manufacturers are likely to face a difficult period in the short term, but there is hope that growth will recover by the end of the year.
The report suggests that this period of weakened demand could provide companies with an opportunity to address long-standing supply chain issues and refine their plans for the future.
This could be beneficial to companies such as Apple, which has been encouraging its suppliers and assemblers to move their operations out of China.
Although an Apple spokesperson was not available for comment, the company is set to release its March quarter earnings on May 4th. This is a highly anticipated event, as investors and analysts will be keen to see how Apple has weathered the recent challenges in the PC market.
Despite the difficulties, there is hope that this period of reduced demand could ultimately benefit PC manufacturers in the long term, by allowing them to address underlying issues and improve their operations.
