PC Market Recorded A Rebound In The Last Quarter, But What's Next When 'AI PC's Are Rolling Out?
Market research firm Gartner has released its report on global PC shipments for the fourth quarter of 2023, and its preliminary statistics show that global personal computer shipments in the fourth quarter of 2023 reached 63.3 million units, marking an increase of 0.3% year-on-year and the first increase over eight straight quarters.
The PC market has hit the bottom of its decline after significant adjustment, Mikako Kitagawa, a senior analyst at Gartner said. Inventory was normalized in the fourth quarter of 2023, which had been an issue plaguing the industry for two years. This subtle growth suggests that demand and supply are finally balanced.
Among these challenges, all of the top six manufacturers have maintained their positions with no significant share increases or decreases.
In the fourth quarter of 2023, the top six suppliers maintained their rankings with mixed performances. Lenovo, HP, Apple, and Acer showed year-on-year growth, while Dell and Asus declined.
However, due to anticipated component price increases in 2024, and geopolitical and economic uncertainties, this situation could likely change.
Most industry observers predict that 2024 will be a recovery phase for the PC industry as laptops and desktops bought during the early stages of the pandemic in 2020 become obsolete.
2023 was the worst year in the history of personal computers, with a decline of 14.8%. This is the second consecutive year of a double-digit decline. Global personal computer shipments in 2023 totaled 241.8 million units, lower than the 284 million units in 2022.
With the onset of lockdowns, millions sought to purchase PCs for remote work and home entertainment. Subsequently, PC sales experienced a severe drop as both consumers and businesses saw little need for an upgrade in the following years. However, as those systems start to become outdated, the demand for PCs is beginning to rise again.
In addition, the slight recovery happens to arrive at a crucial moment for the PC industry, as big players such as Microsoft, chipset producers, and PC makers view the concept of the AI PC as the forthcoming key expansion potential for laptops and desktops.
Notably, AI PCs are also broadly characterized as PCs that are equipped with a specific type of neural processor that can operate AI software directly. For example, Nvidia (NVDA) categorizes PCs that operate on its graphics chips and cards as AI PCs, as these hardware types enhance the performance of AI programs.