After a prolonged period of declining consumer demand, the global traditional PC market saw a glimmer of hope this year. In Q2 2024, vendors shipped approximately 64.9 million units of PCs, including desktops, notebooks, and workstations, with a modest 3% YoY growth. It’s important to note that this growth comes after seven consecutive quarters of declining PC shipments worldwide.
Interestingly, AI PCs have played an important role in bringing the PC shipment on the growth path. But before we dwell on that, let’s first examine market back on the overall performance of the global PC market during the last quarter.
In Q1 2024, the PC shipments grew 1.5% YoY to 59.8 million units, a stark improvement compared to the 29% YoY decline reported in Q1 2023, which marked the lowest point in PC history. Even during the holiday quarter, known for aggressive discounts and promotions, worldwide PC shipments plunged 2.7% YoY in Q4 2023, the lowest fourth-quarter volume since Q4 2006.
Before we delve into the factors contributing to the slowdown in demand for PC shipments, let’s examine the world’s top 5 PC companies by shipments and market share in Q2 2024.
World’s Top 5 PC Brands Q2 2024
- Lenovo continues to hold the numero-uno position in the global PC market, accounting for a 22.7% share in Q2 2024. The company shipped 14.7 million units during the quarter, registering a 3.7% YoY growth. However, both shipment share and YoY growth have declined compared to the previous quarter, highlighting challenges in maintaining its leading position.
- HP Inc. maintained its second position in the worldwide PC market with a 21.1% share in Q2 2024. The company shipped 13.7 million units, registering a modest 1.8% YoY growth. HP’s steady performance underscores its resilience in a challenging market environment.
- Dell Technologies continues to face low demand for its PCs, being the only brand among the top five to witness a YoY decline in shipments during Q2 2024. The company shipped 10.1 million units during the second quarter, marking a 2.4% YoY decline. Dell’s share in the global PC market declined to 15.5% in Q2 2024 from 16.4% in Q2 2023.
- Apple, Inc. (NASDAQ: AAPL) continues to impress with its outstanding performance in the worldwide PC market. Driven by high demand for MacBooks and Mac personal computers, Apple achieved an impressive 20.8% YoY growth in shipments, totalling 5.7 million units. Apple maintains its fourth position in the market with an 8.8% share.
- Acer Group remained the fifth-largest PC company globally, with a 6.8% market share as of Q2 2024. The company shipped 4.4 million units during the June quarter, registering an outstanding 13.7% YoY growth.
Factors Contributing to Decline
Despite the global PC market showing a 1.5% YoY growth in Q1 and 3% YoY growth in Q2 2024, these figures suggest a slowdown in consumer demand. This slowdown is primarily due to market maturity.
The traditional PC market has reached a saturation point, where most potential customers already own a device, and the need for frequent upgrades has slowed. Unlike in the past, when technological advancements rapidly drove new purchases, the current improvements in PC technology are more incremental.
Economic uncertainties and slowdowns in key regions have also impacted PC demand. Both consumers and businesses are cautious with their spending, leading to delayed or reduced investments in new PCs. Particularly, the weak performance in China, a major PC market, has significantly impacted global growth figures. However, when excluding China, worldwide PC shipments grew more than 5% YoY, indicating a stronger performance in other regions.
The rise of alternative computing devices, such as tablets and smartphones, has further contributed to the drop in traditional PC demand. Many consumers now rely on these portable devices for everyday tasks, reducing their dependence on PCs.
Positive Indicators: AI and Commercial Refresh Cycles
Despite the challenges, there are positive signs on the horizon. The first two quarters of 2024 reported YoY growth, primarily driven by a surge of interest in AI PCs.
The buzz around AI PCs is palpable. These advanced machines promise enhanced performance, efficiency, and user experiences, attracting significant attention, especially from the commercial sector. Businesses are increasingly interested in leveraging artificial intelligence (AI) capabilities to boost productivity and innovation, which is driving demand for AI-enabled PCs.
Another significant factor contributing to the recent PC shipment growth is the commercial refresh cycle. Organizations periodically upgrade their IT infrastructure, including PCs, to ensure they have the latest technology and security features. This cycle has created a surge in demand for new PCs, helping to counterbalance the decline in consumer purchases.
All eyes are now on Apple and other key players to see how they leverage AI technology to increase consumer demand and strengthen their foothold in the global PC market in the coming months.
