Asia/Pacific PC Market Down by 11.6% in 2022, Slow Demand and Macroeconomic Conditions to Blame

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The traditional PC market (Desktops, Notebooks, and Workstations) in the Asia/Pacific (including Japan and China) region posted a 11.6% year-over-year (YoY) decline in 2022, reaching 106.6M units, according to the International Data Corporation (IDC) Quarterly Personal Computing Devices Tracker, Q4 2022. PC shipments are also expected to decline in 2023 as inventory correction, fulfilled demand, and economic pressures will continue to negatively impact PC sales, especially in the first half of the year.

“At the start of 2022, the Asia/Pacific region continued to benefit from improved supply that began in the second half of 2021. However, 2022 shipments to the region were lower than the previous year as the PC market was negatively impacted by weakened demand across the consumer and commercial segments. The lifting of lockdown measures and the fulfilled demand from purchases in the past two years have contributed to the change in spending priorities,” says Matthew Ong, Senior Market Analyst, Devices research, IDC Asia/Pacific.

After the record high volume in 2021, notebook shipments declined by 8.6% YoY and recorded 70.6M units in 2022 as demand tapered in the second half of the year, which led to overstock across channels. Desktop shipments came in at 34.0M, which is a 17.5% YoY decline because of the weak desktop market in China during lockdowns. The Asia/Pacific region (excluding China) posted growth in desktop shipments thanks to return-to-office demand.

2022 Top 5 PC Company Highlights:

• Lenovo continued to lead the traditional PC market in the Asia/Pacific region, with 29.2% market share. Although Lenovo recorded a 13.5% YoY decline in shipments to the region, the vendor saw growth in India, the Philippines, and Vietnam due to strong commercial demand in the first half of the year.
• HP Inc posted a YoY decline of 12.1% but maintained market share at above 14%. Return-to-office demand and public sector deployments helped the vendor’s commercial desktop shipments grow in numerous countries across the region.
• Dell Technologies lost market share and posted the largest YoY decline among the top five vendors. The vendor’s overall shipments declined in all segments but witnessed growth in notebook shipments to the large business segment, driven by backlog clearance and strong demand in Japan in the first three quarters of the year.
• ASUS was the only top five vendor that posted growth in 2022. The vendor’s consumer notebook shipments increased for the second consecutive year. Furthermore, large shipments to Korea’s education segment in 2022Q1 and 2022Q2 contributed to more than a fivefold increase in the country’s commercial shipments in 2022.
• Acer Group declined by 15.8% YoY. In the consumer segment, the vendor recorded lower shipments in all countries. On the other hand, commercial shipments in India, Indonesia, the Philippines, and Taiwan grew as the vendor was involved in large public sector projects.

Consumer shipments declined by 6.7% YoY in 2022, totaling 53.5M units. Desktop shipments were reduced by 14.4% YoY while consumer notebooks declined 4.5% YoY as consumer spending shifted away from PCs and towards travel and leisure activities after lockdowns were lifted. However, China’s consumer notebook shipments grew 5.0% in 2022, driven by solid demand from students and gamers as the general population was still in lockdowns for most of the year.

The commercial PC market decreased by 15.9% in 2022. Private sector shipments declined, particularly in the second half of the year as many companies had purchased significant number of devices during the lockdowns, while businesses also became more cautious with IT spending due to the unfavorable economic environment (e.g., increased inflation, raised interest rates). In terms of YoY growth rates, desktops fared better than notebooks in many countries as more employees returned to working onsite. In the public sector, shipments have also declined in 2022 as deal volumes were smaller compared to the year before. However, sizeable education deals were deployed in many countries throughout the year as governments continue to invest in students’ access to the latest technology.

In 2023, traditional PC shipments in Asia/Pacific are forecasted to record a reduction of 7.6%, with volumes forecasted at under 98.5M units. The first half of the year will likely see decline in all countries as vendors ship in lower volumes to reduce channel inventory. The commercial segment is expected to limit spending due to the challenging market conditions while consumers prioritize spending on essential goods amid the rising interest rate and inflationary environment. The opening of borders in January 2023 by the largest market in the region (China) will also spur consumer spending in other areas instead of devices. The PC market is forecasted to see some recovery towards the end of the year when macroeconomic conditions improve.

“In the long run, the traditional PC market is expected to remain above pre-pandemic levels. The COVID-19 pandemic has accelerated the adoption of PCs, especially in countries like India and China that previously had low market penetration rates in the consumer segment. In the commercial market, hybrid work has been gaining popularity since the onset of the pandemic and will continue to fuel notebook demand into the future given the flexibility that notebooks provide for work-from-home arrangements. PCs are playing an increasing role in the education space, which would lead to ongoing demand from the public sector,” said Maciek Gornicki, Senior Research Manager, Devices research, IDC Asia/Pacific.