We are talking about different sources of cooling, a very particular synonym that is similar in concept to that of recession when talking about the economy, where in both cases they are those that precede the fall and the crisis in their respective areas. The PC market is in the doldrums and the first figures provided by various companies leave no doubt: the blow will be strong and nothing seems to be able to save it.
It is not surprising that in the macroeconomic context in which we find ourselves, where many people lose their jobs, others for the summer season are hired for 3 months and finally the vast majority arrive at the end of the month very fair… Who will think of buying in a sector like the PC? Well, it seems nobody, or at least very very few.
A drop in the PC market in the second half and the worst is yet to come
We’ve been warning about this for some time in a series of white-on-black articles. From the reports of Bank of Spain, ECB or direct from the United Stateswe have to face the facts: inflation is not seasonal, it takes root and interest rates are not slowing the escalation as expected.
This means that the investment runs dry and with it everyone who had invested in any strategic sector has withdrawn their money. But let us be precise in the medium which concerns us. Intel has frozen hiring in its PC division, as it is, there is no more hiring of staff and it is said that there could even be layoffs.
AMD has already said it very clearly during Financial Analyst Day: the second half of 2022 will have a very steep fall. More data attached, IDC predicts a drop in -8.2% in the PC marketa more than considerable drop which seems to be insufficient if we take into account more data provided by important players in the industry.
Manufacturers slow down, production and deliveries drop
No country or continent is spared, not even China. ASUS put very accurate data on the table, TSMC issued an advisory, and GIGABYTE presents terrible data that would shake the foundations of any business. Let’s start, however, with ASUS, which predicts a Q2 with revenue ten% lower in PC and between a 10% and 15% lower on PC components overall.
Obviously it’s a historic and very big fall in such a short time. The problem is that TSMC already warned of something similar only 3 months ago, even if it was only in the Chinese market, which shouldn’t affect the rest of the world too much, right?
Well, if we go to a giant like ASUS and see the data by region, we have to Europe fell 6% and America 1%percentages that Asia happily took to remain in nearly half of all sales and revenue of the world’s leading hardware brand by sales volume.
This data is much worse at GIGABYTE, which lost no less than a -41% since May and continues in a downward spiral. After seeing all the data that has been provided, it only logically remains to wonder how strong the fall will be, because if there is anything to be clear about, it is that we have not hit the background, neither in the PC market with its fall nor in the economy.