Demand for PCs Tumbles as Purchasing Plummets Post-Pandemic
Sharpest Decline in Nine Years
PC manufacturers are experiencing a drop-off in demand for their products. Research firm Gartner (IT) reported Q2 shipments were down nearly 13% compared to the previous year — the sharpest decline in nine years.
Some market observers contend the market is cooling due to geopolitical uncertainty caused by the Russia-Ukraine war as well as inflationary pressures, leaving consumers more purchase-hesitant. The pattern represents a reversal from buying trends of the last few years.
Reversal of Pandemic Buying Spree
Spending on PCs and other devices surged during the pandemic as more people worked from home and classrooms went virtual. Purchases for at-home electronics declined as pandemic restrictions lifted and people returned to work and school. The drop off in demand was particularly steep in the market for lower-cost computers, such as Chromebooks.
Business spending has continued amid office reopenings, which is helping to offset the waning interest from consumers. Some companies, such as HP (HPQ), expect bottom lines to benefit from improving supply-chain dynamics.
Amid the uncertainty, companies such as Intel (INTC) are taking precautionary measures to support financial resilience. This includes a temporary hiring freeze in its PC-chip division. Likewise, Micron Technology (MU) announced plans to slash spending amid soft demand for its memory chips.
Even as these companies adjust to the new market dynamics, executives and investors alike may find solace in the fact that demand for computers is still above pre-pandemic levels.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.