Omdia data shows continues PC industry decline

Interesting insights from Omdia seem to suggest that the decline in consumer electronics sales isn’t about to turn around, noting that the display market is seeing further weakness as computer, TV, and monitor manufacturers reduce the size of their orders.

Apple gains on the loss

Now, on first sight there’s nothing much other than market insights for Apple users in this, but the data does suggest that we’re in for a long haul before things turn around. And do take a look at the conclusion I see emerging.

“Previous forecasts that large-area displays, including both LCD and OLED shipments, will decrease by 3.2% year-over-year (YoY) in 2023 has now been decreased further to -7.3% YoY in the latest forecast owing to deeper demand erosions and panel makers’ utilization management, according to Omdia’s latest Large Area Display Market Tracker 2Q23.,” they tell me.

What this means is that manufacturers are cutting their orders as they prepare for expected weakness in demand. That weakness is visible in the expectations across multiple industries, with notebook sales anticipated to slump 13.1% year on year.

Who will hold the line?

We don’t know yet if Apple will be the company that holds the line in this malaise, but I suspect that even should sales slip, its market share will continue to climb. Particularly with the existence of the amazing 15-inch MacBook Air.

Peter Su, Senior Principal Analyst at Omdia, says: “Display demands from mobile PCs and monitors are getting weaker along with fewer price increases while LCD TV display prices continue to see price hikes in 2023. Display makers have started to make profits from the LCD TV display business since mid-2023 but are still making losses from the IT LCD business.”

Every action has a reaction, and the action that is taking place is that display makers are both reducing shipments and production and focusing on “Display price protection rather than drive shipment volume towards 4Q23,” he said.

What does that mean to you?

Here’s how the story is going to go

To my cynical mind it means component price increases are on the way. The impact of those increases won’t be equally shared. Component makers will continue to pass the best deals to the companies that can deliver the biggest orders, but for smaller entities, particularly in the PC manufacturing space, this could be tough times coming.

Think of it this way, not only will people not be purchasing as many computers as before, btu the double whammy is that the cost of making the devices has increased, and makers will need to make tough choices between swallowing smaller margins or raising prices. And, of course, raised prices will also reduce sales.

Apple and Samsung have an advantage

I’m just a simple blogger who writes about all these things for incredibly tiny amounts of money (please help), but as I see it, this is what happens next:

• The price of cheap PCs increases.
• Even as Apple continues to enjoy the benefit of owning its own silicon, which gives it better processor prices than others enjoy.
• And Apple devices remain ascendant and improving.

Result?

Apple’s market share is going to continue to grow. And of the others, there’s really only Samsung with both the rep and the control of manufacturing it takes to come out of the party shining.

More from Omdia’s release

Here’s more from Omdia’s release for your delectation and delight.

“Large-area display revenue has been forecasted to reach $63.2 billion in 2023, a 3.1% decrease from the previous forecast of $65.2 billion and a 4% YoY decrease, due to slower demand and IT display price recovery. Only TV display revenue is expected to increase by 16.4% YoY along with its price hike from mid 1Q23.

“It is forecast that BOE will have the largest share of large-area display unit shipments at 32.1% in 2023, followed by Innolux at 13.7% and LG Display at 11.9%. BOE is also expected to take the largest share of large-area display shipment area at 26.4% followed by China Star at 20.3% and HKC Display at 13.4% in the same period.

“For large-area OLED, it is forecast that Samsung Display will have the largest share of large-area OLED unit shipments at 57.7% in 2023, followed by LG Display at 33.2% in 2023. However, it is LG Display who will have the largest share of large-area OLED shipment area at 73.3% followed by Samsung Display at 25.8% in 2023.”

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