A perfect storm of supply chain issues, the China lockdown, the Russian-Ukrainian war, and global inflation have slashed global demand for PCs this year, facing the entire market with the steepest drop since the 1990s.
According to data presented by AugustaFreePress, the global PC sales revenue is expected to drop by 4.1% to $207.6 billion in 2022.
PC Sales Revenue Dropped Below 2020 Levels
After explosive growth in 2020 and 2021, rising inflation, supply chain disruptions, and geopolitical issues have upended the PC industry this year. According to Gartner data, in the third quarter of 2022, global PC shipments totaled 68 million units, showing a massive 19.5% year-over-year drop and the fourth consecutive quarter of YoY decline.
The plunging demand for PCs in both the consumer and business sectors and the inflation-caused spending cuts have knocked down the entire market’s revenues below 2020 levels.
According to Statista data, global PC sales revenue is expected to drop by $8.8 billion in 2022, and 57% of that value will come from the laptop segment. Last year, laptop sales generated $126 billion worldwide. However, this figure is expected to drop by 4% YoY to $120.9 billion in 2022. Desktop PC sales will drop by 4% to $29.4 billion this year. Tablets follow, with a 4.2% year- over-year drop and $57.2 billion in total sales. However, Statista expects global PC sales revenue to continue falling in the next two years and slip to $206.6 billion in 2024. The entire market will start recovering in 2025, with revenues rising to $212.8 billion.
US Market the Hardest Hit, Revenue Down by $2B YoY
The Statista survey also revealed the United States suffered the hardest revenue drop of all major PC markets. Last year, consumers and businesses in the US spent $37.4 billion on PC sales. This figure is expected to drop by almost $2 billion or 5.1% to $35.5 billion in 2022.
Chinese PC sales are forecast to decline by 3.3% year-over-year to $38.12 billion. On the other hand, as the world`s third-largest PC market, India will see its revenues grow by 2.7% YoY to $12.12 billion in 2022. Together, the three markets will generate more than 40% of total PC revenue this year.