PC, Tablet Outlook 'Worsening,' Says IDC

The outlook for PCs and tablets is “worsening,” reported IDC Thursday, forecasting an 11.9% falloff this year to 456.8 million units. It expects further declines in 2023, with a 5.6% drop to 281 million units for PCs and a 6.7% decline in tablet shipments to 148 million. Shipment volumes remain above pre-COVID-19 pandemic levels, but they will continue to face challenges from macroeconomic headwinds, bloated channel inventory and high market saturation, IDC said. The compound annual growth rate (CAGR) for PCs is just above 1% over five years, minus 1.7% for tablets. PC and tablet makers “will struggle in the coming months,” said analyst Jitesh Ubrani, as “not only are volumes expected to decline, but so will average selling prices.” Near-term excess inventory is forcing OEMs and retailers to "heavily discount products," he said, and product mix is expected to shift from premium to mid-range products. The consumer market is being hit hardest; IDC forecasts a minus 0.5% CAGR through 2026. It expects a “strong refresh cycle” in enterprise PCs heading into 2024.