Desktop and laptop sales down 29% and fall below pre-Covid levels

Based on the results of the first quarter of 2023, it appears that the period of increased demand for desktop PCs that was caused by the COVID-19 pandemic and the shift to remote work is now over. Sales of desktop PCs have decreased significantly compared to the same period last year, with only 56.9 million units sold. According to Jitesh Ubrani, a research manager for mobile and consumer devices at IDC, channel inventory levels have dwindled over the past few months, but they still remain well beyond the healthy four to six week interval. This means that even with significant discounts, high inventory levels can be expected to continue into the middle of the year and possibly into the third quarter. It is important to note that these trends and predictions are based on the current state of affairs and may be subject to change in the future. However, for now, it seems that the desktop PC market has returned to its pre-pandemic levels. It is true that many managers and representatives of various companies have testified to the decline in demand for desktop PCs, with some companies even compensating for falling sales revenue by keeping prices high. AMD CEO Lisa Su and NVIDIA are among those who have taken this approach. However, experts predict that sales next year may see a boost due to the planned mass migration to Windows 11, with a concomitant update of the technical fleet among companies and consumers. Microsoft's new operating system, which was released in late 2022, has been met with mixed reviews but is expected to drive demand for new PCs with updated hardware requirements. It is important to note that these predictions are based on current information and may be subject to change based on market trends and consumer behavior. Nonetheless, the upcoming migration to Windows 11 is expected to have a positive impact on the desktop PC market in the coming year. According to Lynn Huang, Vice President of Research at IDC, the desktop PC market is expected to grow substantially by 2024 as the aging installed base is updated, the economy improves, consumers upgrade, schools replace aging Chromebooks, and businesses transition to Windows 11. The future of the desktop PC market depends on the global economy. If the recession continues and worsens, consumers may not have the funds for upgrades, putting equipment manufacturers in a difficult position. As a result, prices of hardware components, such as the Radeon RX 6950 XT and the AMD Ryzen 9 7950X, have fallen in China and the US. For instance, the 16-core Ryzen 9 7950X has dropped in price by $176 to $523, which is now at the level of the 12-core Ryzen 9 7900X3D. Meanwhile, the 12-core Ryzen 9 7900X is offered for $401 instead of its old price of $550.