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PCs Face Biggest Demand Dip in Almost a Decade

Demand for personal computers fell 12.6% in the second quarter of 2022 from the same time in 2021, the most year-on-year decline in nearly a decade, with consumers facing more realistic hope of a looming economic downturn, The Wall Street Journal reported on Monday (July 11).

The decline in demand for PCs is the largest in nine years, according to research firm Gartner. Computer makers shipped 72 million PCs from April to June this year, compared to about 82.4 million in the same three -month period last year, according to the report.

In part, the leak was blamed on the slowdown in purchases of new tech gadgets that marked two more years since the start of the COVID-19 pandemic.

“The decline we saw in the first quarter of 2022 intensified in the second quarter, driven by ongoing geopolitical instability due to the Russian Invasion of Ukraine, inflationary spending pressure and a sharp decline in demand for Chromebooks,” Mikako said. Kitagawa, a director of research at Gartner.

Research firm International Data Corp. said there was a decline of about 15.3% annually in global device shipments in the second quarter of the year.

“Fears of a recession continue to rise and weaken demand for parts,” said Jitesh Ubrani, a research manager at IDC. However, pandemic demand for computers is so strong that even with the recent downturn, overall shipping levels remain above pre-pandemic levels, according to IDC.

The U.S. market for PCs declined 17.5%, in large part due to a 50% drop in Chromebook shipments after millions of students used the devices for home schooling in during pandemic-related lockouts, according to Gartner.

Related: Paycheck-to-Paycheck Consumers Turn to Loans as Savings Safety Nets Fray

Meanwhile, runaway inflation has already begun to eat up consumers ’money reserves, fueling government stimulus offers – and is now even harder to fill.

According to “New Reality Check: The Paycheck-To-Paycheck Report-Financial Distress Factors Edition,” a PYMNTS and LendingClub collaboration surveyed more than 2,300 consumers, ”19% of consumers lived on wage to salary spent more than they the past six months, compared to 2.2% of consumers without salary to salary.

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About: More than half of utilities and consumer finance companies have the ability to process all monthly bill payments digitally. The kicker? Only 12% of them did. Digital Payments Edge, a PYMNTS and ACI Worldwide collaboration, surveyed 207 billing and collection professionals at these companies to find out why fully digital remains idlas.

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