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US PC maker Dell loses market share in China amid economic headwinds, supply chain shift

  • Dell’s share in China’s PC market shrank to 8 per cent in the quarter, at fourth spot, compared to 14 per cent in the same period last year
  • Apple, the fifth biggest computer supplier in China in the second quarter, is reportedly exploring manufacturing some MacBooks in Thailand

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The Dell logo seen in a computer store in Shanghai. Photo: Shutterstock Images
Iris Dengin Shenzhen
US personal computer giant Dell Technologies saw its Chinese sales plummet in the second quarter, amid a weaker macro environment and the company’s reported plan to cut reliance on China-based supply chains.
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In the second quarter, Dell’s shipments of desktops and notebooks in China plunged 52 per cent to 804,000 units, according to a report by research firm Canalys released on Tuesday. Dell’s share in China’s PC market shrank to 8 per cent in the quarter, at fourth spot, compared to 14 per cent in the same period last year.

The PC maker’s setback in the June quarter followed a 45 per cent decline in shipments in the first three months of 2023, Canalys data showed.

Dell’s plunge came amid an overall slump in China’s PC market, which declined 19 per cent in the second quarter due to more cautious spending from the commercial sector amid a slower economic recovery, according to the report.

“Micro, small and medium enterprises are very sensitive to macro challenges, and they comprise a large portion of Dell’s commercial shipments,” Canalys analyst Emma Xu said on Thursday.

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“These companies are dealing with bottlenecks in their own businesses under the current economic environment, and it’s unlikely for them to make a large-scale purchase of the devices at the moment,” Xu added.

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