During Q2 2023, Mainland China’s PC market exhibited a moderated decline in shipments of desktops, notebooks, and workstations, dropping by 19% year-on-year to 9.6 million units. Both desktop (including desktop workstations) and notebook (including mobile workstations) shipments experienced an equal 19% decrease, amounting to 3.0 million and 6.6 million units respectively. The commercial sector remained cautious in IT investment due to a slower-than-expected economic recovery through July 2023. On the other hand, the tablet market saw a positive trajectory, marking an 8% year-on-year growth with 6.5 million units shipped. This growth was propelled by robust iPad performance, which stood in contrast to the supply-constrained quarter of the prior year.
Within Q2 2023, Mainland China’s commercial sector faced a more substantial setback, witnessing a 22% year-on-year decline in PC shipments to 4.2 million units. Meanwhile, shipments to the consumer sector displayed a slightly better performance, experiencing a 16% year-on-year drop, resulting in a total of 5.4 million units.
Emma Xu, an Analyst at Canalys, highlighted, “The anticipated commercial recovery in Mainland China has proven to be weaker than expected. Economic indicators spanning weak exports and consumer spending, along with a deceleration in bank lending, collectively underscore the challenges impacting the broader IT industry, particularly the PC market. Businesses of various sizes are adopting a more cautious approach to investment decisions in the face of an uncertain economic landscape. Small and medium-sized businesses are particularly grappling with budgetary constraints. During this period of economic downturn and restructuring, further government stimulus measures are anticipated to reignite investment and foster confidence.”
On the consumer front, the “618” shopping festival saw approximately 15% growth in expenditures. However, a significant portion of this growth was channeled into categories like necessities, beauty, and fashion, with electronics spending experiencing relatively subdued growth. Xu added, “Despite extensive promotional efforts, the lack of a significant boost in PC market sales during Q2 2023 suggests that consumers are unlikely to prioritize the renewal of their devices in the short term.” Canalys anticipates that the recovery of the PC market in Mainland China will continue to face challenges, with a projected annual decline of 19% in shipments for the entirety of 2023.
Although Lenovo maintained its position as the leader in Mainland China’s PC market, the company faced a year-on-year shipment decline of 24%. HP and Huawei both enjoyed a 6% year-on-year growth against a favorable comparison quarter, securing the second and third places respectively. Dell suffered the most substantial decline among major PC vendors, experiencing a 52% drop in annual shipments, which marked a recent low for its market share in the region. Apple clinched the fifth position with a notable 17% year-on-year growth.
In the same vein, Mainland China’s tablet market posted an 8% year-on-year growth, predominantly driven by Apple’s robust performance. Despite substantial discounts from vendors and the retail channel in Q2 2023, Android tablets encountered a 5% shipment decline.
Emma Xu elaborated on the tablet market, noting, “Emerging tablet vendors in Mainland China are strategically targeting increased market penetration to bolster their user base. This is being achieved through various means such as expanding into lower-tier cities, enhancing entertainment and ecosystem offerings, and providing competitive alternatives to unbranded budget tablets. Leading tablet vendors are also diversifying their product portfolios across various price segments to navigate the competitive landscape. Looking ahead, market leaders will need to deliver heightened innovation across both devices and ecosystems to unlock the potential of interactive intelligence by synergizing hardware, software, and applications, tailored to specific use cases in education, entertainment, and commercial scenarios.”
Apple emerged as the leader in Mainland China’s tablet market, with 2.3 million units shipped, representing a remarkable 47% year-on-year growth. This growth was partly boosted by a relatively weak comparison quarter resulting from significant supply chain disruptions faced by Apple in Q2 2022. Huawei secured the second spot with a 19% growth, shipping 1.2 million tablets. Xiaomi claimed the third position in the market rankings and witnessed the most robust growth among major vendors, with shipments surging by 53%, attributed to the launch of several new models. Lenovo, holding the fourth position, observed a 44% decline in tablet shipments, reflecting weak commercial demand for its devices. Honor rounded out the top five with an 8% annual shipment decline.
