(Reuters) - Global shipments of personal computers returned to growth in the first quarter after two years of decline, according to preliminary results from market research firm International Data Corporation (IDC) released on Monday.
The PC market grew 1.5% from a year earlier, with 59.8 million shipments in the first quarter, and returned to pre-pandemic levels with the onset of a refresh cycle for PCs that were purchased during the pandemic, the report added.
WHY IT'S IMPORTANT
The availability of AI-capable PCs is expected to bolster demand for the devices, helping the market rebound from a lull in orders after the pandemic-driven buying spree.
CONTEXT
PC demand over the past two years was also affected by the economic landscape, with high interest rates and sticky inflation forcing businesses and customers to delay system upgrades.
According to IDC, the growth in the first quarter was largely driven by easy year-over-year comparisons, and the easing inflation has been also helping spark a recovery in the Americas as well as Europe.
But weakness in China, the largest consumer of desktop PCs, continued and affected global sales of devices, IDC said. The popularity of desktops is waning in favor of laptops, especially in China.
Last month, another research firm, Canalys, said that PC market in the United States is expected to grow in 2024 and 2025 at 7% and 10%, respectively.
KEY QUOTE
"Despite China's struggles, the recovery is expected to continue in 2024 as newer AI PCs hit shelves later this year and as commercial buyers begin refreshing the PCs that were purchased during the pandemic," said Jitesh Ubrani, research manager with IDC's Worldwide Mobile Device Trackers.
BY THE NUMBERS
China's Lenovo Group topped the list again, with 23% market share, followed by HP Inc (NYSE:HPQ) and Dell Technologies attaining market share of about 20% and 15.5%, respectively.
Apple (NASDAQ:AAPL) saw a 14.6% rise in shipments in the quarter and had a market share of 8.1%.