The restraint on the demand side is noticeable.
(Photo: IMAGO/MASKOT)
san francisco Global PC sales fell significantly in the second quarter. According to calculations by the analysis company Canalys, sales in the USA fell by 23 percent in the second quarter compared to the same quarter last year. It was the fourth straight quarter in which sales declined.
Notebooks were the hardest hit, down 27 percent – not entirely unexpected given the “unprecedented success” of inexpensive Chromebook laptops, according to Canalys analyst Brian Lynch. Chromebooks – lower-powered devices powered by the Chrome OS system – are now dominating the US school and college market.
Industry giant HP reported results for the second quarter of the calendar year that fell short of its own and analysts’ expectations. “We expected demand to weaken,” said CEO Enrique Lores. “But not to this extent.”
Analysts had expected sales of 11.06 billion dollars in the PC division, but there were only 10.1 billion after 11.4 billion in the previous year. Notebook sales fell by 32 percent.
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A similar picture emerges from the computer manufacturer Dell and the supplier Intel. Both also expect a weaker second half of 2022. According to media reports, Google wants to stop producing its own Chromebooks and leave the market to third-party manufacturers such as Dell or HP.
“The extra boom for PC manufacturers is over. Your customers are putting off investments,” said analyst Holger Müller from Constellation Research on the current market situation. “The time of cheap money is also over. Nobody knows if there will be a quick, short recession in the economy or a long stagflation.”
What a look at China and Europe shows
The Chinese PC market fell 16 percent in the second quarter, according to Canalys data. This is due to weak demand and temporary halts in production and factory closures at key manufacturers as a result of Covid outbreaks. China operates the most rigorous Covid policy of any major industrialized country. Emma Xu, Canalys analyst in China, notes: “It was the biggest market drop in nine years.”
In Europe, supply problems up until May and high inflation were compounded by the consequences of the war in Ukraine, which weighed on the economy. Here PC sales fell by 18 percent – and again laptops were the biggest losers (down 26 percent).
According to Canalys analyst Kieren Jessop, the greatest uncertainty over the course of the year is the high inflation: “While the delivery problems should continue to ease, the effects of inflation are becoming increasingly noticeable.” This will primarily affect the private customer market.
Sales of desktops and laptops to consumers fell 34 percent as more households were forced to postpone purchases “as disposable incomes dwindled.” Analyst Müller sees no recovery in the short term. “It’s missing a confidence booster that could revitalize business.”
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