SYDNEY, Australia, 11 December 2023 – According to International Data Corporation ’s (IDC) Worldwide Quarterly Personal Computing Device Tracker, Australia’s traditional PC market (desktops, notebooks, and workstations) declined by 12.4% year-over-year (YoY) in the third quarter of 2023, shipping 1.02 million units, marking its sixth consecutive quarter of YoY declines.
The consumer segment declined by 11.1% YoY due to restrained spending caused by rising living costs. Consumers chose to postpone their purchases, anticipating better deals during Black Friday and end-of-the-year promotions in 4Q23. Shipments, however, grew quarter-on-quarter by 3.6% as vendors and channels prepared for the upcoming sales period in Q4.
A similar pattern was seen in the commercial segment, which declined by 13.5% YoY. Rising unemployment rates, increasing inflation, and declining business confidence prompted the government and businesses to exercise caution in their spending and postpone projects. The SMB segment faced a significant YoY decline of 16.7% while the education sector stood out with a 6.1% YoY growth on the back of increased demand for Chrome-based devices.
“The economic condition in Australia is marred by rising interest rates and escalating living expenses, putting a damper on consumer spending. This situation posed a risk to businesses as well, as their initial response was to implement cost-cutting measures or delay spending,” said Sharmishtha Bhatt, Lead Analyst for Personal Computing Devices Research at IDC Australia.
Among the Top Five companies, Lenovo overtook HP for the top spot. This can be attributed to strong shipments in the consumer and education segments due to the anticipated demand during the year-end sales and education.
2023 outlook
Australia’s PC market is expected to decline by 11.7% YoY in 2023. End-of-year events like Black Friday and Boxing Day sales are expected to provide some momentum to the consumer segment in 4Q23. Vendors and channels both have geared up by offering attractive deals and consumer offers. However, due to challenging economic conditions, the commercial segment will remain muted through the first half of 2024.
Notes:
- Shipments include shipments to distribution channels or end-users. OEM sales are counted under the company/brand under which they are sold.
- Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.
-Ends-
For more information about this report, trends, or questions for analysts, please contact Sharmishtha Bhatt, Sr. Research Analyst, at shbhatt@idc.com or Miguel Carreon, Marketing Specialist, at mcarreon@idc.com . You can also follow IDC India’s LinkedIn & Twitter and pages for regular updates on IDC’s research & events.
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