In the ever-evolving landscape of China’s PC market, US technology giant Dell Technologies has encountered a substantial setback, marked by a staggering 52% decline in PC shipments during the second quarter of 2023. This startling drop has seen Dell’s market share in China plummet from 14% in the same period last year to a mere 8%, securing its position at fourth place, according to a report by research firm Canalys.

The broader context reveals a challenging environment for PC manufacturers in China, as overall PC shipments dipped by 19% in the second quarter, attributed to a more cautious approach to spending in the commercial sector amid a sluggish economic recovery.

Canalys’ analyst, Emma Xu, pointed out that “micro, small, and medium enterprises are very sensitive to macro challenges,” and given the ongoing economic uncertainties, they are less inclined to make substantial investments in devices at this juncture.

Dell’s downfall comes at a time when the company is reportedly strategizing to diversify its supply chain and reduce reliance on China-based suppliers. In January, reports surfaced suggesting that Dell plans to cease purchasing China-made semiconductors by 2024 and might shift approximately 50% of its production out of China by 2025.  This move is seen as a response to escalating tensions between Beijing and Washington and a response to customer demands for a more diversified supply chain, as revealed by Michael Dell, the founder and CEO of the company.

Meanwhile, Canalys’ report indicates that Apple, currently the fifth-largest computer supplier in China, is exploring the possibility of manufacturing some of its MacBooks in Thailand. The shift in manufacturing locations could be an attempt to mitigate supply chain challenges and disruptions, which Apple faced in the same period last year.

Despite the overall decline in the PC market, the tablet segment in mainland China displayed resilience. Tablet PC shipments surged by 8% year-on-year, reaching 6.5 million units in the second quarter of 2023. This resurgence was largely driven by a strong rebound in iPad shipments.

The second quarter results seem to reflect not only the challenges posed by the economic climate but also the evolving dynamics of the technology industry, where companies are reevaluating their global supply chain strategies in response to geopolitical tensions and market fluctuations.

As the third quarter unfolds, it remains to be seen whether Dell can regain its foothold in the Chinese PC market or if the shifting sands of global supply chains will continue to redefine the competitive landscape in this pivotal sector.

Related:

• Tech giant Dell boosts full-year outlook as AI demand surges and PC market rebounds
• India Emerging as Laptop Factory of the World as Dell, HP, and Others Apply to Create Locally 75,000 jobs
• The Most Advanced Chips in the World: Apple to Buy TSMC’s Entire Supply of 3nm Chips for 2023

(via)

The post Dell faces a significant decline in the Chinese PC market appeared first on Gizmochina.

Huawei is one of the most unfortunate tech companies in recent years. It was once a global leader in the smartphone market, but it has been struggling since the US-China trade war began. In an effort to recover, Huawei has been expanding into new sectors, including computers. The company’s efforts seem to be paying off. In the first quarter of 2023, Huawei’s PC shipments surged by 34.1% year-on-year. This helped the company re-enter the top three of China PC market. However, the tech giant says that it’s only a matter of time before Huawei claims the top spot. Here are the details…

Dell’s shipments plummeted by 50%, Huawei’s share rose to second in China’s PC market

Huawei has re-entered the top three of China’s PC market, with shipments surging by 34.1% year on year in the first quarter of 2023. The company’s Vice President of Consumer Business Group’s Strategic Marketing, Li Changzhu, says that it’s only a matter of time before Huawei claims the top spot.

According to the latest reports, Lenovo and HP remained steady in the Chinese PC market, with market shares of 24.2% and 22.1%, respectively. However, Dell, which declared a plan to “decouple from China” in its supply chain, experienced a “halved” drop in shipments, falling out of the top three. The market share that Dell lost was seemingly “swept up” by Huawei.

Huawei’s approach to the PC and tablet market is somewhat distinctive from traditional PC manufacturers. The company is primarily concentrating on the integration of intelligent ecosystems as a novel area for innovation. Their products are designed with specific audiences in mind, such as office environments, student demographics, and existing customers of Huawei’s phones and tablets. I can vouch for this as a former user of a MateBook X Pro; the company’s premium products exceed their competition.

Since the beginning of 2022, the PC market has been shrinking for over a year. Despite Huawei’s continual growth against the trend, it is still inevitably affected by the industry’s overall downturn. Over the last three quarters starting from the third quarter of last year, Huawei’s growth rates in the Chinese PC market were 110%, 73%, and 34%, respectively, indicating that its growth is gradually slowing. However, according to current trends, it’s expected that there will be some demand for device replacement starting in 2024, which could stimulate growth in the entire market.

RELATED:

• Best Sony Xperia Smartphones 2023
• Project Helix is Nvidia & Dell’s Latest Collaboration to Build Models using Generative AI
• Dell Alienware M16, X14 R2 With High Refresh Rate, 13th Gen Intel Core SoCs…
• Huawei MateBook X Pro, MateBook 16S hitting UK & EU store shelves on June…
• Huawei’s Mate X3 may be Tougher than the Competition, as per Promo Video

(source)

The post Dell Suffers Major Setback in China PC Market as Huawei Takes Second Spot with Premium Products appeared first on Gizmochina.

The PC Market exploded in 2020 as a result of lockdowns due to the global pandemic. Even after a year, it continues to grow in certain regions. But in others, it has begun to drop as it has reached the point of saturation. Let’s talk about two such nations in this article, namely China and the US.

Recently, Canalys released reports on China and US PC markets for Q3 2021. According to them, the former grew by 3% YoY with more than 15 million units in shipments, while the latter shrunk by a 16% YoY with shipments of 30.3 million units.

China set a Q3 record, whereas the US fell for the first time after multiple quarters with double-digit growth. However, the shipments in both markets are still more than the pre-pandemic level.

Canalys points out that the decline in the United States is due to the sharp drop of shipments in the education and consumer segments as they have now reached the point of saturation. Only desktops went up by 6% as people have started moving to work/education premises. Hence, notebooks (especially Chromebooks) and tablets decreased by 15% and 24% respectively.

On the other hand, in China, the desktop and notebook segments increased by 3.9% and 1.8% respectively. This helped the market to beat Q3 2020’s record of 14.7 million units of overall shipments.

As far as brands are concerned, Dell led the US PC market, followed by HP, Lenovo, Apple, and Acer. Whereas, Lenovo aced the China PC market, followed by Dell, HP, ASUS, and Acer.

Last but not least, despite witnessing negative growth, the US PC market is expected to grow positively with the return of educational and enterprise procurement in the upcoming months.

RELATED:

• Chromebooks and tablets no longer selling as well as they did in the early pandemic days
• India PC market sees record high shipments in Q3 2021 despite chip shortage: IDC
• Jio is working on a new tablet and Smart TV that will launch in 2022: Report
• Here’s why China Tablet Market is still growing

The post China PC market set a record while US market declined in Q3 2021 appeared first on Gizmochina.