For those folks in need of new tech, particularly PCs and tablets, if you dodged the “great deals” over Black Friday but are still on the hunt, your patience could prove beneficial.
Word on the street is that sales for PCs, tablets, and Chromebooks will continue their decline into 2023, prompting manufacturers to offer discounts in an attempt to move aging stock.
Word on the street reflects on the balance sheet
But don’t take our word for it. We don’t speak for the streets. These words of warning come from the International Data Corporation (IDC) and its Personal Computing Devices Market Share report.
According to IDC’s analysts, the market has already begun seeing changes to accommodate this trend. These changes include price cuts and a shift in focus of product segment from manufacturers – mostly from the premium segment to a mid-range product stack.
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The IDC’s forecast for PC shipments in 2022 indicated a decline of 12%. That decline is expected to increase by 5.6% in 2023. But, despite this, the IDC predicts shipment volumes for personal computing devices “will remain above pre-pandemic levels”.
Something else to consider is the sudden surge in demand for personal computing devices during the pandemic. This was one of the key contributors to the lingering semiconductor shortage, along with uneven supply and, of course, mass shutdowns. Many manufacturers ramped up production where they could to make up for that. But today, as demand declines, the same manufacturers sit with excess stock.
How to accrue piles of money
If you’re Nvidia, for example, that means you sell your outgoing product stack alongside your new stuff. You reduce the price of the old stuff a little to show you care about your customers. Not by too much though, because consumers have shown they’re willing to pay a premium. Then, you increase the price of the new stuff, because again, consumers will flock.
Now you can recline on your piles of money while the consumer thinks they’re happy because they have a shiny new GPU.
If you’ve got an upgrade planned, whether that be that shiny new GPU or a new laptop for ‘work purposes’, it might be a good idea to wait a little longer. The savings could be worth it.
Source: International Data Corporation