PC shipments will continue to record the worst decline of all device segments in 2023. PC shipments are estimated to decline 6.8% in 2023, after a 16% decline in 2022, according to management consulting company Gartner.
Through 2023, PC vendors will reduce inventory levels and Gartner analysts expect PC inventory levels will return to normal by the second half of 2023 after significantly increasing in 2022. “Inventory levels increased due to vendors overestimating market demand and because of the collapse in consumer confidence and dramatic fall in demand,” said Atwal.
In 2022, while many business PCs could upgrade to the Windows 10 operating system (OS), many did not. By the end of 2023, Gartner expects more than 25% of business PCs will upgrade to Windows 11. However, Windows 11 will not drive enough sales to reach the same volumes seen between 2020 and 2022. In addition, as high inflation rates and impending recession decrease discretionary spending and budgets, Gartner estimates consumers and businesses will extend their PC and tablet replacement cycles by over 9 months by the end of 2023.
Read more: A tough time for PC market: Report
Worldwide shipments of total devices (PCs, tablets, and mobile phones) are projected to decline 4.4% in 2023, to a total of 1.7 billion units. In 2022, the devices shipment market declined by 11.9%.
“The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023,” said Ranjit Atwal, Senior Director Analyst at Gartner.
Moreover, Gartner observed that the downward trend affecting the devices market will lessen in 2023 on the expectation of a less pessimistic economic outlook through 2023, eventually increasing consumer and business spending.
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