The personal computer market hurts Microsoft’s revenue from Windows.. Details

The worldwide PC market 2022 has not seen progress and has suffered just about everywhere. According to Gartner, worldwide PC shipments totaled 65.3 million units in the last quarter of 2022. This was a 28.5% decrease from the fourth quarter. From 2021.

This marks the largest drop in quarterly shipments since Gartner began tracking the PC market in the mid-1990s. says Gartner.

PC shipments reached 286.2 million units in 2022, down 16.2% from 2021.

IDC shared similar numbers According to IDC, global shipments of traditional PCs fell “below expectations” in Q4 2022 (Q4 2022) with 67.2 million PCs shipped, down 28.1% compared to 2021.

Microsoft announced its quarterly results and the impact of the PC market can be clearly seen in the revenue the company generated from Windows during its quarterly earnings call.

Microsoft revealed that its Windows OEM dream fell dramatically by 39% in the second quarter.

This is the revenue Microsoft earns when PC manufacturers put Windows on their machines.

Microsoft CEO Satya Nadella said the numbers have returned to pre-pandemic levels.

“While the number of PCs shipped decreased during the quarter, returning to pre-pandemic levels, Windows usage intensity is still higher than it was pre-pandemic, as time spent per PC increased,” Nadella said during the earnings call. by about 10 percent.”

He also said that monthly active Windows devices also reached an all-time high this quarter.

Not many customers are looking to upgrade

“As many consumers already have relatively new PCs purchased during the pandemic, a lack of affordability supersedes any impulse to buy, causing consumer demand for PCs to decline,” said Mikako Kitagawa, director of analysts at Gartner. personality to its lowest level in years.”

Demand for computers has fallen in almost every part of the world, with Europe, the Middle East and Africa experiencing a 37.2% decline according to Gartner, due to the intersection of political turmoil, inflationary pressures, rising interest rates and an impending recession.

“A decline of this magnitude only occurs when market demand actually stops,” Kitagawa said. “Business and consumer confidence has collapsed in the EMEA region, leading to a significant drop in demand for PCs.

The massive increase in inventory has also severely limited selling opportunities as sellers focus on moving older stock.”

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