The M2 chip powering the new MacBook Air is shown during Apple’s annual Worldwide Developers Conference in San Jose, California on June 6, 2022.
Peter DaSilva | Reuters
Apple’s global computer shipments fell 40.5% year over year in the first quarter of 2023, amid a broader contraction in consumer demand. According to to a research firm called ITC.
Five of the largest computer makers — Apple, ASUS, Dell, HP and Lenovo — saw double-digit declines in first-quarter shipments, reflecting weak demand and continued inventory woes. But Apple’s decline has been huge overall.
According to ITC data, Apple’s global PC market share fell from 8.6% to 7.2% between the first quarter of 2022 and the first quarter of 2023. According to IDC, the company has shipped 2.8 million fewer devices annually through the first quarter of 2023.
This is not entirely unexpected. Apple Chief Financial Officer Luca Maestri said in February that Apple expected a double-digit decline in Mac and iPad sales from a year earlier in the March quarter. Mac revenue fell 28.66% year-on-year in the December quarter. Apple CEO Tim Cook said at the time that the challenging macroeconomic environment affected iPhone, Mac and Apple Watch sales.
Apple shares fell about 2% on Monday morning.
“Preliminary results represent a coda to an era of Covid-driven demand and at least a temporary return to pre-Covid patterns,” ITC said.
“Even with heavy discounting, channels and PC makers can expect elevated inventories to persist through the middle of the year and into the third quarter,” ITC researcher Jitesh Uprani said in a report.
The ITC report said that PC manufacturers will suffer in the future, with growth expected to pick up again by the end of the year.
There is potential upside for PC manufacturers, ITC said. Weak demand gives companies an opportunity to finish “restructuring their plans” and get rid of supply chain bottlenecks. That breathing space is especially helpful for companies like Apple, which have begun moving suppliers and assemblers to move their operations beyond China.
An Apple spokesperson was not immediately available for comment.
Apple will report its March quarter earnings on May 4.
Correction: According to ITC data, Apple’s global PC market share fell from 8.6% to 7.2% between the first quarter of 2022 and the first quarter of 2023. The previous version incorrectly specified the percentage change.
