Shipments of laptops, desktops and workstations in Western Europe saw the PC market decline 22% year-on-year to 12.8m units in Q3 2022. Worsening business confidence has been one of the main factors that has influenced this drop in demand.
According to data from Canalys, the weakening of the demand for business laptops as a consequence of the deterioration of business confidence has had a notable impact on the PC market in Western Europe during the third quarter of the year.
This has caused the drop in demand to precipitate, experiencing a drop of 22%. From the consultant point out that business spending on PCwhich had been strong, is falling at the same pace as the consumer segment.
Small and medium-sized businesses have significantly reduced PC purchases, more than larger organizations, as economic headwinds have dampened cash flows and rising interest rates have made financing options narrower. more expensive.
Laptops have been the worst performing segment
In this sense, laptops have been the segment that has had the worst performance, with 10.4 million units shipped, 25% less than last year due to the cooling of business demand. In addition, to this have also been added the falls experienced in the consumer segment and education.
For its part, desktops have fallen only 6% as large organizations have continued to make purchases. Tablet shipments have reached 6 million units, down 13% year-on-year, as the back-to-school season has produced low upgrade volumes.
The consumer PC continues without signs of improvement
For Canalys, consumer PC demand remains subdued due to rising prices, especially energy, and as real revenues decline, there is a shift in demand between price levels.
shipments of low end PC they have declined substantially more than the mid-range or high-end. This reflects the divergent impact of inflation across income levels. And, with disposable income expected to contract further, demand will shift from high-end to more affordable options.
This will mean that providers with portfolios spanning broader price ranges will be better prepared to capitalize on them. For the consultant, this decrease in demand has also caused an increase in channel inventory levels.
38% of EMEA partners surveyed had more than four weeks of PC inventory in stock
According to a survey by Canalys Candefero among channel partners, it pointed out that 38% of EMEA respondents had more than four weeks of PC inventory in stock; compared to just 25% a year ago.
Looking ahead, the first signs of Q4 2022 performance are not promising either. The cost during the week of black friday has been higher than expected, especially in Electronic productsbut spending for the upcoming festive season is forecast to be the steepest drop in more than a decade.
Suppliers should continue to offer promotions to stimulate demand and liquidate inventories.
From the fourth quarter of next year through 2026, Canalys expects a return to regular seasonal patterns and a new normal demand level of 25% above pre-pandemic volumes. Positive trends around consumer device usage and hybrid working mean there is still long-term optimism for PCs and tablets.
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