A new MacBook Air powered by the M2 chip is seen on display during Apple’s annual Worldwide Developers Conference in San Jose, California, June 6, 2022.
Peter Dasilva | Reuters
Apple’s worldwide PC shipments fell 40.5% year-on-year in the first quarter of 2023 amid a broader contraction in consumer demand, according to research firm IDC.
All five major computer manufacturers— An apple, ASUS, Dell, HP and Lenovo — posted a double-digit drop in shipments in the first quarter, reflecting weaker demand and persistent inventory issues. But Apple’s decline was the biggest of the bunch.
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Apple’s worldwide PC market share fell between the first quarter of 2022 and the first quarter of 2023 from 8.6% to 7.2%, according to IDC data. The company shipped 2.8 million fewer devices year-on-year in the first quarter of 2023, according to IDC.
It’s not entirely unexpected. Apple Chief Financial Officer Luca Maestri said in February that Apple expects a double-digit year-over-year decline in Mac and iPad sales for the March quarter. Mac revenue fell 28.66% year over year in the December quarter. Apple CEO Tim Cook said at the time that the challenging macroeconomic environment had affected iPhone, Mac and Apple Watch sales.
Apple shares closed down more than 1.5% on Monday.
“The preliminary results also represent the coda to an era of COVID-induced demand and at least a temporary return to pre-COVID patterns,” IDC said.
“Even with heavy discounting, channel and PC makers can expect increased inventories to continue through mid-year and potentially into the third quarter,” IDC researcher Jitesh Ubrani said in the report.
PC makers will suffer in the near term, the IDC report said, with growth expected to recover by the end of the year.
IDC said there are potential benefits for PC makers. Weakened demand gives companies a chance to finish “resetting their plans” and iron out supply chain bottlenecks. This breathing space will be quite useful for companies like Apple, which has begun to push suppliers and assemblers to move their operations out of China.
An Apple spokesperson was not immediately available for comment.
Apple will report its March quarter earnings on May 4.
Correction: Apple’s worldwide PC market share fell from 8.6% to 7.2% between the first quarter of 2022 and the first quarter of 2023, according to IDC data. A previous version incorrectly specified the percentage change.