The Australian traditional PC market, which includes desktops, notebooks, and workstations, suffered a 9.8% decline to 4.2 million units in 2023, as per the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The desktop and notebook sectors witnessed shrinkages of 9.7% and 10.4% respectively, while workstations experienced a growth of 7.2%.
The consumer segment in 2023 saw a significant reduction by 15.2%, impacted heavily by high interest rates and inflation pressures. The commercial segment wasn't spared either, with a decline of 4.9%, attributed to decreased demand from the government, VLB, and SMB sectors. Correspondingly, the education segment noted an 18.4% growth, driven by the high demand for Windows- and Chrome-based devices.
In the fourth quarter of 2023, the consumer segment displayed signs of recovery, growing by 4.5% year-on-year. This growth was boosted by multiple sales events like Christmas, Boxing Day, Black Friday, and Cyber Monday. Additionally, a temporary halt on interest rate hikes also had a positive impact. In contrast, the commercial market declined by 5.4% YoY in the same quarter, owing to delayed projects and cautious enterprise spending. Despite these factors, the education segment experienced a substantial 40.7% YoY growth, propelled by the demand for Windows-based devices.
Sharmishtha Bhatt, Senior Research Analyst at IDC Australia, identified rising living costs and unfavourable interest rates as key elements applying pressure on consumer spending. “The commercial segment has also slowed down due to market uncertainties, leading to project delays and budgetary constraints”, she added.
The decline in the Australian PC market is projected to continue into 2024 at a rate of 1.3% YoY. However, optimism for a recovery remains, with expectation of a rebound during the second half of the year. The government’s planned implementation of cost-of-living tax breaks slated for July 2024 is forecasted to reinvigorate the market.
It's crucial to note that the IDC's tracking takes into account shipments catered to distribution channels or end-users. OEM sales are accounted for under the company or brand they are sold. Additionally, the tracker focuses on traditional PCs, which include desktops, notebooks, and workstations, but excludes tablets or x86 servers. Detachable tablets and slate tablets, while part of the Personal Computing Device Tracker, are not concretely addressed in this update.