Personal Computer Market Declines 9% in Q3, Expected to Recover in Q4

On October 10, Tinydeal reported that market research firm Gartner revealed a 9% decline in global PC shipments during the third quarter of 2023. However, HP saw a 6.4% increase in personal computer shipments during the same period. Experts believe the PC market has reached its lowest point and is set for recovery in the fourth quarter.

A Historic Downturn in PC Shipments

Throughout 2022 and early 2023, the PC market experienced a sharp decline due to oversupply and reduced demand. The first quarter of 2023 marked the worst period in Intel’s 55-year history, with a staggering $2.8 billion loss. However, the company’s financials showed a smaller decline in the following quarter, returning to profitability. Analysts at Canalys predict a gradual recovery in PC shipments, aligning with Intel’s outlook.

Intel’s Market Outlook and Recovery Predictions

Intel’s CEO previously stated that the company aims to achieve industry leadership by 2025. In the second quarter, the PC chip business expanded its market share, and the overall personal computer market began stabilizing. Inventory levels returned to normal, further fueling expectations for a market rebound in the second half of the year.

Artificial intelligence (AI) is expected to play a crucial role in driving personal computer sales. With AI-integrated devices becoming more prevalent, demand for personal computers will likely increase. Meanwhile, the server market presents mixed results, with inventory digestion continuing in the second half of 2023. Server sales are projected to decline in the third quarter before rebounding in the fourth quarter.

PC Market Growth Forecast for 2024 and Beyond

Market research institutions predict a 9% global personal computer growth rate in 2024, with an anticipated rise to 12% in 2025. Additionally, TrendForce forecasts a similar recovery for LCDs beginning in 2024, signaling a broader rebound across the tech industry.

With the personal computer market set for recovery, industry players are optimistic about a sustained upward trend in the coming years. If AI and technological advancements continue to drive innovation, personal computers will remain an essential part of the digital ecosystem.

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