Demand for PCs softens last year

April 4, 2024 | 12:00am

MANILA, Philippines — Issues on government procurement and a decline in corporate demand led to fewer orders for personal computers (PCs) last year, a global IT market intelligence firm said.

Data from the International Data Corp. (IDC) showed shipments of computers fell by almost a fourth in 2023, declining to 1.89 million, from 2.5 million in 2022.

IDC devices associate research analyst for the Philippines Roben Dispo said procurement of PCs fell in the first half of 2023, as the government was faced with difficulties in purchasing.

These challenges were solved later on, leading to a spike in orders in the second semester. Dispo said the PC market went up by 11 percent on a yearly basis in the fourth quarter as a result of this late submission of requirements.

Meanwhile, IDC observed that the private sector reduced its PC shipments, taking a cue from the negative outlook on the economy. Further, the pessimism extended to the consumer segment, as Filipinos struggled to keep up with inflation and trimmed their budget on several expenses.

“Despite the improved results in [the fourth quarter of 2023] with a 10.5 percent annual increase recorded in that specific quarter, 2023 PC market registered a substantial decline of 24.2 percent with shipments saturated in the first of the year reeling from low demand in the market, followed by vendors prioritizing inventory management in the second half of the year,” Dispo said.

By supplier, Acer retained its title as the PC of choice of Filipinos, accounting for 27 percent of the shipments in 2023.

Lenovo landed second with a market share of 22 percent, while HP ranked third with 13 percent, as ASUS and Dell placed fourth and fifth with 10 percent and eight percent, respectively.

For 2024, Dispo said PC manufacturers are banking on the orders to be made by the Department of Education (DepEd) to drive up the demand. The IDC expects the DepEd to order nearly half a million units of laptops to be distributed in public schools.

In spite of this, Dispo warned that some risks may prevent the PC market in the Philippines from making a comeback. For instance, suppliers are managing their inventory levels to balance with the weakening demand for PCs.

IDC projects PC demand to pick up by more than a fourth this year, as long as DepEd proceeds with its purchase of new units.

“Shipments are forecasted to rebound by 26.5 percent this year driven by the education sector, as more than 490,000 laptops are expected to be delivered to the DepEd Computerization Program via multiple deals which were announced since the end of last year,” Dispo said.