Apple Inc (NASDAQ:AAPL) took the biggest hit as pain in the personal computer (PC) market persisted in the first quarter of 2023 due to excess inventory and poor demand, according to a report from the International Data Corporation (IDC).
The IDC Worldwide Quarterly Personal Computing Device Tracker revealed that global shipments of personal computers (PCs) fell by 29% to 56.9 million in the three months to March 31, with Apple suffering a 40.5% decline. Dell Inc. (NASDAQ:DELL) saw shipments fell 31%, while Lenovo and ASUS both saw declines of 30.3%.
The IDC noted that the preliminary results also represented a coda to the era of COVID-driven demand and at least a temporary return to pre-COVID patterns. Shipment volume in 1Q 2023 was noticeably lower than the 59.2 million units shipped in 1Q 2019 and 60.6 million in 1Q 2018, it added.
"Though channel inventory has depleted in the last few months, it's still well above the healthy four to six-week range," commented Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "Even with heavy discounting, channels and PC makers can expect elevated inventory to persist into the middle of the year and potentially into the third quarter.”
Apple has announced a series of cost-cutting measures in a bid to streamline its operations as market conditions for the tech sector remain challenging.
In March, it was reported that the company was delaying bonuses for some corporate divisions and was limiting hiring and leaving positions vacant when employees depart.
More recently, Bloomberg reported the company was poised to cut staff in its retail teams, joining the likes of Meta Platforms Inc (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT) in slimming down operations.
Apple’s shares were down 1.3% in Monday pre-market trade.
Contact the author at stephen.gunnion@proactiveinvestors.com