PC Shipments in 2Q22 See Largest Decline in Nine Years

Global PC shipments fell 11.1% in the second quarter of 2022 to reach 71.2 million units and record the largest YoY decline since 2Q13, according to Counterpoint Research. The 2Q22 decline was largely due to lockdowns in China’s Shanghai and Kunshan, which hit the PC supply chain. However, as the OEMs’ inventory continues to accumulate amid lackluster consumer demand globally, supply issues will likely get resolved in the second half of this year, Counterpoint Research said in a new report.

The macroeconomic turbulence continues to impact worldwide consumption momentum. Regional conflicts, as well as global inflation, have resulted in a downward sloping demand and consumer spending. Enterprises too are putting off their new purchases and device upgrades, though the orders from the commercial segment have remained more solid compared to the consumer segment. By region, the US and EU experienced relatively huge double-digit declines in their shipments, mainly dragged by Chromebook demand correction and soft consumer demand, as these regions had started seeing shipment growth ahead of other regions last year.

On the other hand, lockdowns in China during the quarter hit hard the laptop supply chain, as major laptop ODMs, including Quanta, Compal, and Wistron, suffered manufacturing disruptions. The most harmful impacts were in April and May when we saw approximately 40% and 20% declines respectively for key ODMs. Production lines resumed normal operations in the second half of May and were trying to clear order backlogs.

Even though the top three brands showed a YoY decline in Q2 shipments, they all managed to keep their rankings unchanged. Lenovo maintained its leadership in the global PC market with a 24.4% share. The brand’s total shipments fell 12.7% to 17.4 million units mainly due to weak consumer demand, partly offset by moderate commercial orders.

HP suffered the most among the top brands, reporting a 27% decline in shipments from a high base last year. The sharp decline was mainly due to soft momentum for consumer products and Chromebooks. On the other hand, Dell had the smallest adjustment to its shipment performance, thanks to a commercial/premium-focused product strategy. Acer saw a 14.8% shipment decline. Despite Chromebook weakness continuing to cap Acer’s growth momentum, its market exposure in entry- to mainstream-level laptops helped the brand take fourth place in global PC shipments in 2Q22.

Apple reported a sharp decline of 20% in its Q2 shipments largely due to supply chain disruption at Quanta’s manufacturing lines in China. The consumers too were waiting for a new MacBook series equipped with M2 chips. As a result, the company lost its fourth place in the global PC rankings. Asus’ Q2 shipments were down 7.7% thanks to its commercial segment focus in recent quarters combined with consumer spending weakness entering 2022. The brand’s total shipments of 4.7 million made it share the fifth position with Apple.