Global PC shipments drop less than expected in Q2, weak demand persists
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Global PC shipments in Q2 dropped 13.4% Y/Y, marking the sixth consecutive quarter of contraction amid macroeconomic headwinds, weak demand, and a shift in IT budget spending, according to a report by the International Data Corporation.
However, the numbers are better than forecast, and the decline is not as steep as Q1, when PC shipments declined 29%. 
Overall weak demand resulted in bloated inventory levels for longer than expected, IDC noted. Most PC makers saw double-digit declines during Q2, except for Apple (NASDAQ:AAPL) and HP (NYSE:HPQ).
Apple (AAPL) was the only major player to register shipment growth, given a favorable Y/Y comparison due to supply issues last year caused by COVID shutdowns. Meanwhile, HP (HPQ) is approaching normalized levels of inventory after an oversupply in the past year. 

"Companies don't want to be caught with short supply, but at the same time, many seem hesitant to make the big bet on a market rebound," said Ryan Reith, group VP, IDC's Client Device Trackers. "On the consumer side, we're seeing a return to pre-pandemic habits where computing needs are shared across multiple devices, and we believe the consumer wallet will favor smartphones over PCs." 
Separately, Canalys said the global PC market decline slowed in Q2, with total PC shipments down 11.5% Y/Y. This follows two straight quarters where shipments dropped over 30% and indicates that the market is on track for an accelerated recovery in the second half of the year.
"Key industry players have been pointing to the fact that end-user activation rates have been tracking stronger than sell-in shipments," said Ishan Dutt, principal analyst, Canalys. "As conditions improve, we expect businesses to reallocate dormant spending back toward IT upgrades."
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