PC sales forecasted to decline for second consecutive year

The downturn in sales of PCs, tablets and mobile phones will continue this year. Worldwide sales of total devices will decline 4.4% in 2023, to total 1.7 million units. In 2022, the market declined 11.9%, according to a forecast by marketing and research firm Gartner. PC sales will be the worst hit by the downturn.

Worldwide sales of PCs late last year saw the largest quarterly decline since the mid 90s. The decrease was 28.5% compared to the fourth quarter in 2021 and total sales last year was down 16.2%. Total shipment was 65.3 million units in the fourth quarter of 2022 with full-year shipments reaching 286.2 million units.

“The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023,” says Ranjit Atwal, Senior Director Analyst at Gartner. 

“Just as business confidence was beginning to recover after the worst of the pandemic, it has now fallen significantly in most regions. We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023.”

The company says the downward trend affecting the devices market will lessen in 2023 on the expectation of a less pessimistic economic outlook through 2023, eventually increasing consumer and business spending.

PC shipments will continue to record the worst decline of all segments in 2023. PC shipments are estimated to decline 6.8% in 2023, after a 16% decline in 2022.

High inflation rates and impending recession limit spending and budgets, Gartner estimates consumers and businesses will extend their PC and tablet replacement cycles by over 9 months by the end of 2023.

Worldwide smartphone sales are estimated to decline 4% in 2023. Smartphone shipments are projected to total 1.230 million units in 2023, down from 1.280 million units in 2022.

“Consumers are holding onto their phones longer than expected, from six to 9 months, and moving away from fixed to flexible contracts in the absence of meaningful new technology,” says Atwal. 

“In addition, vendors are passing on inflationary component costs to users which is dampening demand further. End-user spending on mobile phones is projected to decline 3.8% in 2023.”