Computer shipments in Western Europe fell by 22%

According to Canalys analysts, shipments of laptops, desktops and workstations in Western Europe fell 22 per cent year-on-year to 12.8 million units in the third quarter of 2022.

At the same time, the forecasts for the fourth quarter remain very pessimistic, Tech News Space reports, citing Canalys.

According to Canalys, laptops performed the worst. Total shipments were 10.4 million, down 25 per cent from the third quarter last year, as traditionally strong corporate demand collapsed amid uncertainty about the business outlook. Deliveries in the consumer and education segments also declined. The desktop market fared slightly better, down just 6 per cent. Tablets shipped 6 million copies – down 13 per cent from the same period last year, but are not included in the statistics for computers. At the same time, the volume of shipments of tablets did not change from quarter to quarter, even the beginning of the school year did not help to increase demand for electronics.

According to a Canalys spokesman, the decline in demand for computers in western Europe has accelerated, while business spending on personal computers previously remained at high levels but is now declining at the same pace as consumer shipments. This is mainly due to the fact that small and medium-sized companies massively refuse to upgrade their computer fleet much faster than large organizations – against the background of general financial instability.

In the consumer segment, buyers are forgoing new computers due to rising prices, especially for energy. Since real incomes are falling at the same time, demand is changing, especially in the budget segment. Declining revenues are expected in the future, the demand structure will also change – buyers will switch to cheaper options, brands with a portfolio of models in a wide price range will benefit from this.

The change in demand also affected the stocks of computers in the warehouses. According to the results of Canalys’ Candefero survey of retailer stocks, 38 per cent of eligible companies operating in Europe, Middle East and Africa (EMEA region) had computer stocks that were more than 4 weeks old in Q3 enough activity – compared to 25 per cent a year ago. At the same time, it is known that although promotional activities in sales channels have increased, overstocks have remained in the warehouses.

According to Canalys, there are early signs that the situation will not improve in the fourth quarter. While Black Friday spending was higher than expected, particularly on electronics, overall spending for the upcoming holiday season is expected to be the lowest in more than a decade.

Experts argue that sellers will need active advertising to sell inventory, we are talking about a “cold winter” for the market. However, some growth in shipments is expected in the second half of next year, although final disposal of devices purchased during the pandemic is not expected to occur until 2024. From the fourth quarter of next year through 2026, traditional seasonal supply patterns are expected to recover, averaging 25 per cent above pre-pandemic levels. Given the growing popularity of hybrid forms of work, a rather optimistic picture is emerging for the future.