Apple Supply and Demand: Apple Inc. (NASDAQ:AAPL) has a lot to be thankful for when it comes to the popularity of its devices. After all, the Cupertino-based company’s iPad and iPad mini tablets are market leaders. Along with this, Apple is no slouch in the smartphone game.
But what about the PC industry? Where does Apple Inc. (NASDAQ:AAPL) and its lineup of Mac desktops fit into the equation?
If you don’t know by now, global PC shipments have taken a nosedive as of late. Unfortunately, there are not too many people who believe that things are going to get better.
For example, IDC is reporting that “EMEA PC Shipments Contracted 20.2% in 1Q13 as Consumers Continue to Divert Spending to Tablets While Commercial Spending Remains Constrained.”
Take a closer look at that number for a second. More than 20 percent was lost during quarter one of 2013 in this region (EMEA). While most people agree that the PC market is slowly dying, not many would have believed things to be going downhill so fast.
For companies, such as Apple Inc. (NASDAQ:AAPL), this is not the end of the world. The reason for this is simple: consumers who are turning away from desktop and laptop computers are falling in love with tablets. And as you know, this is where Apple is really thriving.
Chrystelle Labesque, research manager, EMEA Personal Computing at IDC, added the following:
“While the PC market continues to suffer from a shift to other devices, the current market expansion to a larger product portfolio and higher number of devices per person continues to support an increase in overall spending on total client devices, which grew by 15% in 2012 and will remain at double-digit in 1Q13.”
In its report, focusing on Europe, the Middle East, and Africa, it is noted that “the PC market recorded a drop of 17.5% year-on-year, reaching just over 10 million unit shipments in 1Q13.”
This is a huge hit for a market that used to be so big. The question remains: will Apple Inc. (NASDAQ:AAPL), along with competitors, attempt to do anything about this? Or will they simply spend more money in other markets while also focusing on products, such as tablets, that are more popular?
Apple Inc. (NASDAQ:AAPL) in particular is not one of the top five vendors in this region, and likely never will be when it comes to the PC market. That being said, research by IDC notes that Cupertino is struggling in this area due to “consumer demand weakness.”
Which vendors are taking the biggest hit in EMEA?