Dell, HP sink as Citi says Q4 PC data shows 'worse than expected decline'
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Dell Technologies (NYSE:DELL) and HP (NYSE:HPQ) shares fell on Wednesday after Citi said preliminary data from the PC space showed fourth-quarter data was worse than expected.
Analyst Jim Suva noted that fourth-quarter data from IDC showed a "worse than expected decline," as shipments came in at 67.2M, down 28% year-over-year.
"...We continue to remain tempered on PC Unit expectations and we believe PC inventories continue to remain high, with potential overhang in [first-half of 2023], and we model declines for the next few quarters, with muted recovery in the near-term as recession woes delay commercial upgrade cycle," Suva wrote in a note to clients.
Delving deeper, Lenovo retained the top spot with a market share of 23%, followed by HP (HPQ) and Dell (DELL). However, all three companies lost market share, down 0.1 point, 0.3 point and 1 point year-over-year, respectively.
Comparatively, Apple (NASDAQ:AAPL) and Asus each gained share, up 3 points and 1 point, respectively. Apple (AAPL) clocked in fourth in the PC space with 11% of the market and ASUS came in fifth, with 7% of the market.
Suva added that 2023 PC units are expected to be down 6% year-over-year and there will likely be some form of inventory digestion in the next few quarters. Next year, the PC space is expected to see a rebound, as Suva forecasts unit shipments to rise 3% year-over-year.
Dell (DELL) shares fell nearly 4% in mid-day trading, while HP (HPQ) declined less than 1%. Apple (AAPL) shares rose slightly more than 1.5%.
Earlier this month, it was reported that Dell (DELL) may stop using Chinese-made chips by 2024 and reportedly told its suppliers to reduce their exposure to the world's most populous country.