The PC outlook is bleak! IDC estimates that annual shipments have dropped by 8.2%, Intel department suspends recruitment | Anue Juheng-US Stock Radar

Market research firm IDC on Wednesday (8th) citing weak demand and supply chain challenges, revised down its forecast for PC shipments this year from the original 1% contraction to a contraction of 8.2%, and warned that there are still downside risks, especially consumption. PC. Intel (INTC-US) also announced on the same day that it would suspend recruitment in the PC chip division for at least two weeks.

Intel also issued a global statement pointing out that Intel is at the beginning of a long-term growth cycle for the entire semiconductor industry. The company has formulated the right strategy and adjusted the expenditure of key plans and priorities, which is expected to help the company overcome environmental uncertainty and implement strategies. , and will deliver on its commitments to customers, shareholders and employees.

IDC predicts that global PC shipments will decline by 8.2% in 2022, a decline far greater than the previous forecast of 1%. The annual shipments are estimated at 321.2 million units, which is lower than the 345 million units predicted in February, and will not be too much. Rapid rebound, the global PC compound annual growth rate in 2026 will be 0.6%.

The tablet market is also not optimistic. IDC estimates that global tablet shipments will decline by 6.2% this year, an increase from the previous forecast of 2%. It is estimated that tablet shipments will decline by about 2% annually in 2026.

The new crown epidemic has made working from home the latest trend, driving the PC market to grow significantly, and the market expects that this new type of work mode should support the demand for commercial PCs in the coming months. Nonetheless, consumer demand remains weak, as evidenced by HP (HPQ-US) and Dell (DELL-US) of the financial report can be a little known.

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In the quarter ended April 30, HP’s commercial PC revenue rose 18%, but consumer PC revenue fell 6%, overall PC sales fell 17%, and demand for low-end notebooks was significantly weak; Dell’s commercial PC revenue grew during the same period 22%, and consumer PC revenue fell 3%.

Excluding headwinds from manufacturing and logistics, IDC PC market analyst Ryan Reith said that some factors are expected to boost PC demand over the next two years, such as Microsoft (MSFT-US) to end support for Windows 10 by 2024, and the hybrid work model also benefits PC sales.

However, Reith believes that economic problems such as inflation may prolong the PC replacement cycle, and it is estimated that the demand for consumer PCs will remain weak in the future. Even if the downward revision is already large, downside risks still exist, especially for consumer PCs.

Intel’s PC chip division freezes recruitment

In addition, Intel announced a series of cost-cutting measures on Wednesday, including suspending all human recruiting in the client computing division, according to a memo cited by Reuters, adding that some recruiting operations will resume as soon as two weeks after the division reassesses. And honor all job offers previously given.

The PC-focused client computing segment is Intel’s largest revenue generator, generating $9.3 billion in revenue last quarter. Intel, which once dominated the market, is also facing challenges from AMD (AMD-US), and Apple (AAPL-US) to the damage caused by turning to self-developed chips.

The memo also outlines other cost-cutting measures, such as canceling department employee travel, limiting participation in industry seminars and, where feasible, holding meetings by video.


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