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35% drop in the laptop market, hopes for the second quarter

The laptop market experienced a weak first quarter, but a recovery is expected
(photo: CC0 Public Domain)

Global laptop market plunges 35% in the first quarter of 2023 compared to the same period last year and 9.5% compared to the previous three monthssuggests a new analysis of DigiTimes Research, without specifying the volume of deliveriesthey.

In the January-March 2023 period, manufacturers have attempted to get rid of laptop stocks by reducing purchases of components. Analysts identified high demand for gaming hardware as a trend during the quarter.

Vendors are expected to destock and release new laptops in large quantities at the start of the second quarter. In addition, demand for laptops in the education sector is expected to recover. As a result, in the second quarter, global shipments of notebook computers could grow by 9%, compared to the previous three months.

According to TrendForce analysts, about 33.9 million laptops were released to the global market in the first quarter of 2023. This is 13% less than the previous quarter and 39% less year-on-year. Analysts point to ongoing economic woes as the main reason for the decline, which has curbed consumer activity and hindered laptop sales amid efforts across distribution channels to eliminate inventory.

In an effort to offset the pressure of unsold inventory, PC vendors have reduced ODM order volumes to their contracted notebook PC manufacturers. TrendForce believes that the measures taken will yield results in the second quarter of 2023.

Given the expected weakening of the surplus, analysts forecast a resumption of quarterly growth in laptop shipments. April-June deliveries are forecast to increase 11% from January-March to 37.63 million units. However, compared to the same period in 2022, when 45.7 million laptops were shipped, the decrease will be almost 18%.

In March, IDC analysts lowered their outlook for the PC market, citing macroeconomic issues and a general weakening of consumer demand. For 2023, analysts expect a decline in the supply of desktop computers, laptops and tablets by 11.2%, to 403.1 million units, which is below the level of 2019. The volume of shipments of traditional computers will decrease by 10.7 %, up to 260.8 million units.

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