PC shipments fall as macroeconomic concerns bite | Job Binary

(Bloomberg) — The global PC market suffered its steepest decline on record as economic uncertainty and a glut of unsold inventory marred shipments for the fourth straight quarter.

Shipments of laptops and desktops fell 19.5% in the third quarter of 2022 compared to the year-ago period, according to research firm Gartner. It was the biggest drop Gartner has documented in two decades of tracking the market, echoing data compiled by Canalys, which has released similar figures showing double-digit declines.

The dismal PC numbers coincide with a period of upheaval in the global tech industry, which is now weighing on a slew of restrictions imposed by Washington last week on chip and technology exports to China. Taiwan Semiconductor Manufacturing Co. The major chipmaker posted its biggest ever decline on Tuesday as the market reacted to the widespread sanctions.

PC vendors and Advanced Micro Devices Inc. Major providers such as . While shipment volume remains comparable to pre-pandemic levels and strong hiring numbers suggest positive commercial demand, economic headwinds are likely to impact IT spending for business and personal use next year, according to Canalys.

“The rapid deterioration in demand across all segments is a worrying sign not just for retailers but for players across the supply chain,” said Canalys senior analyst Ishan Dutt. “Intel and AMD are facing headwinds from weakness in their PC businesses, and smaller makers of components from ICs to memory are cutting output and slashing earnings forecasts.”

The market is likely to recover in the second half of 2023, Dutt added.

Lenovo Group Ltd. was the world’s top PC maker in the third quarter, although its shipments fell about 15%, according to Gartner. Among the top five vendors, HP Inc. had the biggest decline in the third quarter, down 28%.

(Updates with TSMC stock down)

©2022 Bloomberg LP

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