PC market got hammered in Q3, but Apple saw massive Mac shipment growth

Posted:
in Current Mac Hardware edited October 2022
Apple's Mac business growth is a giant high-point in a PC market downturn, with a 40.2% year-on-year increase in shipments for Q3 2022 against a sea of shrinkage from other major PC vendors.

14-inch MacBook Pro
14-inch MacBook Pro


The PC market has been in trouble for quite a while, with worldwide shipments continuing to decline. However, while firms like Lenovo and HP are seeing shipment levels drop year-on-year for Q3 2022, Apple is encountering the opposite.

In the Q3 2022 worldwide PC shipments tracker by IDC, overall PC market shipments reached 74.2 million units, a drop of 15% from the same quarter one year ago.

Apple stayed in fourth place for the quarter, generating 10.06 million shipments in the period. Apple's result is an increase from Q3 2021, which saw 7.17 million shipments, and represents growth of a staggering 40.2%.

The growth in a shrinking market also means Apple gained market share, going from 8.2% in Q3 2021 to 13.5% in Q3 2022.

Ahead of Apple, top position Lenovo saw its shipments shrink YoY 16.1% to 16.9 million, HP declined 27.8% to 12.7 million, and Dell dropped 21.2% to 11.96 million. Fifth-place Asus also saw a reduction of 7.8% to 5.5 million units shipped.




"Consumer demand has maintained muted though promotional activity from the likes of Apple and other players has helped soften the fall and reduce channel inventory by a couple weeks across the board, according to IDC research manager Jitesh Ubrani. "Supply has also reacted to the new lows by reducing orders with Apple being the only exception as their third quarter supply increased to make up for lost orders stemming from the lockdowns in China during the second quarter."

While the market as a whole dropped year-on-year, IDC still points out that the shipment volumes are still "well above pre-pandemic levels," a time when PC volumes were "largely driven by commercial refreshes due to the looming end of support for Windows 7."

With claims of increased shipments, the numbers should mean Apple's Mac-related earnings during its upcoming October 27 results call should see a hefty bump in size.

Read on AppleInsider

Comments

  • Reply 1 of 16
    Excluding Apple PC shipments is down 20%.
    DAalsethwatto_cobra
  • Reply 2 of 16
    XedXed Posts: 2,540member
    It's actually possible for Apple to jump ahead to at least 2nd next year and possibly even first if the WinPC market continues to suffer like this YoY. That would be amazing to see.
    waveparticlewatto_cobra
  • Reply 3 of 16
    saareksaarek Posts: 1,523member
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    williamlondonwatto_cobra
  • Reply 4 of 16
    thttht Posts: 5,437member
    While the market as a whole dropped year-on-year, IDC still points out that the shipment volumes are still "well above pre-pandemic levels," a time when PC volumes were "largely driven by commercial refreshes due to the looming end of support for Windows 7."
    I would think PC unit sales will continue to drop until they reach pre-pandemic levels. So, the bottom is not here yet. Maybe things will start looking up for the overall market in Fall of 2023.

    PC replacement cycles are what, 4 to 5 years now? All those PCs purchased in 2020 and 2021 won't be replaced in earnest until 2024.
    FileMakerFellerwatto_cobra
  • Reply 5 of 16
    blastdoorblastdoor Posts: 3,277member
    First 22 TB hard drives, now 10 million Macs per quarter? I feel like I just stepped out of a time machine. 

    I really wish Apple still reported the actual number of Macs shipped so that we wouldn't have to rely on these very noisy estimates. But still, even if the actual growth was just 20% instead of 40% it's still amazing. 

    All hail Apple Silicon! 


    Alex_Vwatto_cobra
  • Reply 6 of 16
    blastdoorblastdoor Posts: 3,277member
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    I imagine that sales would look pretty much the same because Apple seems to be supply constrained thanks to Chinese COVID lockdowns. 

    Setting that aside, though, the most popular Mac model by far is the MBA and the base models are both competitively specced and priced (especially since they kept the M1 model around at a discount). So I doubt there's huge room to boost sales by cutting margins. 

    I think the better way to increase sales -- and Apple appears to agree -- is serving more markets and use-case scenarios. There has been a proliferation of Mac models in recent years to serve a wider range of needs and I suspect that helps boost sales more than slashing margins would. Ignoring custom configs, we now have two MBA models (M1 and M2), three MBP models (13, 14, and 16 inch screens), Mac mini, iMac, Mac studio, and Mac Pro. That's 9 distinct models of Mac, all of which can also be custom configured. While there might still be some gaps in the lineup, there aren't nearly as many as there were ten years ago. 

    I hasten to add that, at least in my view, this is not like the "bad" proliferation of models that occurred during the Performa era back in the mid 90s. Back then the differentiation was confusing and didn't add value for users -- it was just a marketing ploy. Today, the variation really adds value. There might be *some* confusion (more models always leads to some confusion), but I think the benefits of addressing more legit needs offsets that cost. 
    FileMakerFellerbaconstangmuthuk_vanalingamAlex_Vwatto_cobra
  • Reply 7 of 16
    ppietrappietra Posts: 288member
    A bit hard to believe this growth is real! IDC probably made some sort of mistake, especially when see that it projected a 20% decline in Apple’s sales in the 2nd quarter, while Gartner projected 10% growth. This kind of big swings don’t make any sense.
    edited October 2022 FileMakerFellerwatto_cobra
  • Reply 8 of 16
    crowleycrowley Posts: 10,453member
    ppietra said:
    A bit hard to believe this growth is real! IDC probably made some sort of mistake, especially when see that it projected a 20% decline in Apple’s sales in the 2nd quarter, while Gartner projected 10% growth. This kind of big swings don’t make any sense.
    Agree, the scale of disagreement makes me very dubious at this.  If the market wants to inflate Apple stock I’ll take it, but expect a correction drop when Apple release “disappointing” sales figures.
    FileMakerFellermuthuk_vanalingam
  • Reply 9 of 16
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    That's not how pricing strategy works, it's much more complicated than you imagine.
    FileMakerFellerwatto_cobra
  • Reply 10 of 16
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    Just imagine what their profits would be like if they accepted a lower number of sales and went all in on quality!
    watto_cobra
  • Reply 11 of 16
    ppietra said:
    A bit hard to believe this growth is real! IDC probably made some sort of mistake, especially when see that it projected a 20% decline in Apple’s sales in the 2nd quarter, while Gartner projected 10% growth. This kind of big swings don’t make any sense.
    Why these "market analytics" businesses still have any credibility is beyond me. I think we're in a situation where the sophisticated investors see these numbers as the sham that they usually are, but act on the expectation that the majority (the "rubes") believe the numbers and invest accordingly.
    watto_cobra
  • Reply 12 of 16
    genovellegenovelle Posts: 1,480member
    Xed said:
    It's actually possible for Apple to jump ahead to at least 2nd next year and possibly even first if the WinPC market continues to suffer like this YoY. That would be amazing to see.
    That would be absolutely awesome, but crazy at the same time. 
    watto_cobra
  • Reply 13 of 16
    genovellegenovelle Posts: 1,480member
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    That's not how pricing strategy works, it's much more complicated than you imagine.
    I was just on a training call where a jewelry store had a selection of high quality items they were selling at a great deal but they were not selling as expected. The owner decided to cut bait and take another 50% off as he was leaving for vacation. His merchandiser heard him wrong and instead increased the price by 50%. When he returned home he was delighted to see every one of them gone. Days later he realized the price was actually much higher than the original price. 

    Pricing too low can make things seem cheap. 
    williamlondonbaconstangwatto_cobra
  • Reply 14 of 16
    danoxdanox Posts: 2,844member
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    Profit share not marketshare you don’t know Apple very well?
    edited October 2022 williamlondonStrangeDayswatto_cobra
  • Reply 15 of 16
    saarek said:
    Just imagine what their sales would be like if they cut some of their profit and went all in on growth.
    Just imagine what their profits would be like if they accepted a lower number of sales and went all in on quality!
    Huh? I can’t think of a PC vendor with higher quality. For my day job I use popular Dell laptops, and they absolutely suck. 
    edited October 2022 watto_cobra
  • Reply 16 of 16
    thttht Posts: 5,437member
    ppietra said:
    A bit hard to believe this growth is real! IDC probably made some sort of mistake, especially when see that it projected a 20% decline in Apple’s sales in the 2nd quarter, while Gartner projected 10% growth. This kind of big swings don’t make any sense.
    Why these "market analytics" businesses still have any credibility is beyond me. I think we're in a situation where the sophisticated investors see these numbers as the sham that they usually are, but act on the expectation that the majority (the "rubes") believe the numbers and invest accordingly.
    Right on cue, Canalys came in and said yes the PC market is experiencing a downturn. That post-pandemic spend was going to go away. With a recession coming, or a lull in spending, the downturn will go on for a couple more quarters maybe. 

    Their Apple number? +2.7%. A long long ways away from +40% from IDC. As I recall, there was considerable variance in Mac units last quarter as well. Hmm, wonder what’s going on. 
    watto_cobra
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