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Why the computer market suffers its biggest slump since the 1990s

During 2022 the industry fell 16% in the number of shipments compared to the previous year.

The computer sector during the final stage of 2022 had its biggest drop in shipments for more than 20 years, a situation that will later be reflected in sales due to the low supply in stores and that was born for various reasons such as the current economic situation and the pandemic.

According to Gartnera market consultancy, during the fourth quarter of 2022 PC shipments fell 28.5% compared to the same period of the previous year.

The same happens when you put the number of the total number of shipments in 2022 against that of 2021, which had a decrease of 16.2%. What represents the biggest crisis in this industry since the 90s and that could last longer.

“The PC industry has experienced some very unusual ups and downs in the last 11 years. After the extraordinary period of growth between 2020 and 2021 due to the pandemic, the market has clearly started a downward trend that will continue until the beginning of 2024,” he said. Mikako Kitagawadirector of the company in charge of the study.

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During 2022 the industry fell 16% in the number of shipments compared to the previous year.
During 2022 the industry fell 16% in the number of shipments compared to the previous year.

What are the factors of the fall

To reach this situation, the computer market has been impacted for various reasons. During 2021, the discourse of the brands was focused on the fact that the manufacture of devices was limited due to the low number of internal components available, which may be a side effect for the year that has just ended.

But in the big picture, the analysis performed by the query includes the little interest of people to buy a new computer. This is because in 2020 and 2021 there was exponential growth due to the need to increase the number of PCs at home for remote work and study, in addition to serving as an entertainment center for video games and multimedia content.

This leads current users to be satisfied with the computer they have at home and its performance is still adequate, so a replacement is not needed two years after its purchase.

“With many consumers already owning relatively new PCs purchased during the pandemic, lack of affordability is replacing any motivation to buy, causing demand for PCs to drop to its lowest level in years,” he said. Kitagawa.

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During 2022 the industry fell 16% in the number of shipments compared to the previous year.
During 2022 the industry fell 16% in the number of shipments compared to the previous year.

In addition to the lack of interest in renewing their device for this reason, there are other reasons more related to the technical, because they also point out that there is low innovation in the sector, offering few differential value propositions, especially in PCs for home consumption.

Added to this is the current economic crisis, caused by inflation in several countries and the volatility of the dollar, which lead people and companies to think much more about the need to update their computers, taking into account the possibility of a global rescission. .

The effect of this situation is already reflected in situations like the ones you are experiencing Intel, the company that creates processors, which had to cut staff by 20% in the areas of marketing and sales, due to the fact that some partners such as Lenovo, Dell and HP underperformed in sales, hurting the chipmaker’s revenue.

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