Global shipments of personal computers rose 3 per cent in the second quarter, driven by rising demand for AI-capable devices, according to preliminary data from research firm IDC released on Tuesday.

PC shipments reached 64.9 million units in the three months ended June, the second consecutive quarter of growth after two years of decline.

Apple posted the largest gain among PC manufacturers, followed by Acer Group, which saw shipments climb 20.8 per cent from the second quarter of 2023. In all, Acer Group shipments leaped 13.7 per cent. Overall, the PC market is expected to recover from the slump in orders that followed the pandemic-driven buying spree.

Discussing the market dynamics, Ryan Reith, group vice president at IDC's Worldwide Device Trackers, said two straight quarters of year-over-year growth, the buzz around artificial intelligence PCs, and a commercial refresh cycle seem to be what the PC market needed.&nbsp;

"The buzz is clearly around AI, but a lot is happening with non-AI PC purchasing to make this mature market show signs of positivity."

Although this was a positive trend, weak results in China continued to hold back the market. Excluding China, worldwide shipments grew over 5 per cent year-over-year in the quarter.

China's Lenovo Group maintained the highest market share at 22.7 per cent, while HP followed close behind with 21.1 per cent. A shipment drop of 2.4 per cent still saw Dell Technologies holding a market share of 15.5 per cent.

The latest uptick in PC shipments is evidence of the strength and adaptability of the industry, further pushed now by AI technology. A continuing evolution on that scale sets up only gain: both sellers and consumers are in for a win.

Global shipments of personal computers rose 3 per cent in the second quarter, driven by rising demand for AI-capable devices, according to preliminary data from research firm IDC released on Tuesday.

Global shipments of personal computers rose 3 per cent in the second quarter, driven by rising demand for AI-capable devices, according to preliminary data from research firm IDC released on Tuesday. PC shipments reached 64.9 million units in the three months ended June, the second consecutive quarter of growth after two years of decline. Apple posted the largest gain among PC manufacturers, followed by Acer Group, which saw shipments climb 20.8 per cent from the second quarter of 2023. In all, Acer Group shipments leaped 13.7 per cent. Overall, the PC market is expected to recover from the slump in orders that followed the pandemic-driven buying spree. Discussing the market dynamics, Ryan Reith, group vice president at IDC's Worldwide Device Trackers, said two straight quarters of year-over-year growth, the buzz around artificial intelligence PCs, and a commercial refresh cycle seem to be what the PC market needed. "The buzz is clearly around AI, but a lot is happening with non-AI PC purchasing to make this mature market show signs of positivity." Although this was a positive trend, weak results in China continued to hold back the market. Excluding China, worldwide shipments grew over 5 per cent year-over-year in the quarter. China's Lenovo Group maintained the highest market share at 22.7 per cent, while HP followed close behind with 21.1 per cent. A shipment drop of 2.4 per cent still saw Dell Technologies holding a market share of 15.5 per cent. The latest uptick in PC shipments is evidence of the strength and adaptability of the industry, further pushed now by AI technology. A continuing evolution on that scale sets up only gain: both sellers and consumers are in for a win.

AI boom sparks resurgence in global PC shipments

Chipmaker Intel is preparing to lay off thousands of employees in response to a downturn in the personal computer industry. The announcement could come as early as this month.

World Business Watch: Intel plans to cut thousands of jobs hit by PC slowdown

The US technology giant, Microsoft on Tuesday said that its earnings for the recent quarter fell short of expectations as the sales of personal computers suffered due to low demand and supply delays from China. The tech firm beat market expectations with a $16.7 billion profit on $51.9 billion in revenue but fell short of the same quarter year earlier. As per the firm its sales were harmed by the high US currency which made its products more expensive in overseas markets. Prior to a pandemic, the personal computer market had been steadily declining as more people switched to smartphones and tablets, AFP reported.

Dan Ives, a Wedbush analyst in a note to investors said that the decline in earnings was mostly caused due to fluctuating currency exchange rates and the closure of personal computer manufacturing in China. Ives states, “The most important core business; cloud and commercial bookings were relatively rock solid despite fears.” He further added, “The core DNA of the Microsoft growth story is cloud and core Azure growth which was healthy this quarter and appears to have momentum into 2023 despite economic headwinds."

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Chief financial officer at the firm Amy Hood said, “In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform.”

However, the earnings report stated that the firm lost $300 million in income that would have been generated from Windows operating systems purchased to power the machines due to production shut-in in China and declining demand.&nbsp;

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Furthermore, after the pandemic, the prevalence of online commerce, employment, socialising, and entertainment has rekindled demand for desktop computers but isn’t sure when will this trend continue.&nbsp;

Ad revenue of the company at news, search and LinkedIn suffered due to reduced marketing expenditure. The firm also logged $126 million in operating costs connected to stopping operations in Russia amid the Ukraine crisis.&nbsp;

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However, the company’s CEO Satya Nadella said, “We see real opportunity to help every customer in every industry use digital technology to overcome today's challenges and emerge stronger.”

(With inputs from agencies)

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The US technology giant, Microsoft on Tuesday said that its earnings for the recent quarter fell short of expectations as the sales of personal computers suffered due to low demand and supply delays from China.

The US technology giant, Microsoft on Tuesday said that its earnings for the recent quarter fell short of expectations as the sales of personal computers suffered due to low demand and supply delays from China. The tech firm beat market expectations with a $16.7 billion profit on $51.9 billion in revenue but fell short of the same quarter year earlier. As per the firm its sales were harmed by the high US currency which made its products more expensive in overseas markets. Prior to a pandemic, the personal computer market had been steadily declining as more people switched to smartphones and tablets, AFP reported. Dan Ives, a Wedbush analyst in a note to investors said that the decline in earnings was mostly caused due to fluctuating currency exchange rates and the closure of personal computer manufacturing in China. Ives states, “The most important core business; cloud and commercial bookings were relatively rock solid despite fears.” He further added, “The core DNA of the Microsoft growth story is cloud and core Azure growth which was healthy this quarter and appears to have momentum into 2023 despite economic headwinds." Also read | How Metaverse will impact journalism Chief financial officer at the firm Amy Hood said, “In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform.” However, the earnings report stated that the firm lost $300 million in income that would have been generated from Windows operating systems purchased to power the machines due to production shut-in in China and declining demand. Watch | Microsoft Teams down for thousands of users worldwide Furthermore, after the pandemic, the prevalence of online commerce, employment, socialising, and entertainment has rekindled demand for desktop computers but isn’t sure when will this trend continue. Ad revenue of the company at news, search and LinkedIn suffered due to reduced marketing expenditure. The firm also logged $126 million in operating costs connected to stopping operations in Russia amid the Ukraine crisis. Also read | AI ethics overhaul: Microsoft to phase out public access to controversial facial recognition tool However, the company’s CEO Satya Nadella said, “We see real opportunity to help every customer in every industry use digital technology to overcome today's challenges and emerge stronger.” (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Microsoft’s earnings suffer as computer sales decline

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