Apple shipped 2.8 million fewer devices year-over-year in the first quarter of 2023, with worldwide computer shipments falling 40.5%. According to IDC data, Apple’s worldwide PC market share dropped between the first quarter of 2022 and the first quarter of 2023, from 8.6% to 7.2%.
It includes units that were meant for both industry and individual sales. But tablets and smartphones were excluded from the numbers. The latest drop comes after reports that Apple halted all production of its M2 series chips for MacBooks at the start of the year.
Luca Maestri, Apple’s Chief Financial Officer, had told investors in February that the company expected Mac and iPad revenue to decline double digits year-over-year due to the usual claim of macroeconomic headwinds, as well as challenging launches of its M2 MacBooks compared to previous models. Mac revenue dipped 28.66% year-over-year during the December quarter.
Industry experts believe the massive drop in sales correlates with multiple factors, including post-COVID reversal of work-from-home policies, a general malaise in the economy, and a significant increase in layoffs from big and small tech companies.
Jitesh Ubrani, IDC researcher, stated in the report that 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. The report said PC manufacturers will suffer in the near term, with growth expected to pick back up by year-end. It noted that weakened demand gives companies a chance to finish, rejiggle their plans and iron out supply chain kinks.
Furthermore, IDC says lowered demand will enhance manufacturers’ ability to decouple with China and move production elsewhere.
