Chromebook Sales Decline in Q3 - Market Saturation

Worldwide PC Sales Experience a Dip, Chromebooks See Significant Decline

According to a recent report by Canalys, global PC shipments decreased by 2% during the third quarter. However, a particularly noteworthy finding from the PC market analysis was the substantial reduction in Chromebook sales, which plummeted from 18% of total sales in the previous quarter to just 9%.

Market Performance and Supply Chain Concerns

Despite the decline, the market demonstrated resilience with over 122 million units sold during the quarter – a figure exceeding pre-pandemic levels. Nevertheless, potential supply chain disruptions pose challenges for PC manufacturers in the near future.

Chromebook Sales Plummet

Chromebook sales experienced a significant year-over-year decrease of 37%, totaling 5.3 million units sold as the surge in demand triggered by the pandemic began to subside. Leading Chromebook retailers faced considerable setbacks.

Lenovo, the top vendor, saw a decline of over 20% year-over-year. HP, in second place, reported a substantial loss of 66%, while Acer, ranking third, experienced a decrease of over 28%.

Market Saturation as a Key Factor

Canalys attributes this downturn primarily to market saturation rather than component shortages or broader supply chain issues. The firm noted, “The Chromebook market was hit by a massive downturn, with a 37% year-on-year fall in shipments (52% quarter on quarter) in Q3.”

This decline coincides with the reaching of saturation points in key education markets, such as the U.S. and Japan, coupled with a slowdown in public sector funding for digital education initiatives.

Tablet Shipments Also Decline

Tablet shipments also decreased, falling 15% year-over-year. Sales declined across all regions except Asia-Pacific, which saw a 23% increase in sales. This contrasts sharply with North America, where sales were down 24%.

Tablet Market Share Dynamics

Apple maintained its lead in the tablet market, capturing 40% of the market share, up from 34.4% in the same period last year. However, unit sales remained virtually unchanged, resulting in 0% growth.

Samsung’s market share decreased slightly from 20.4% to 19.1%, with sales dropping by over 20% compared to the previous year. Lenovo secured the third position with an 11.3% share, an increase from 9.5% a year ago, representing modest 2% growth.

PC Sales Show Mixed Results

Overall PC sales presented a more positive picture. Lenovo experienced a 4.1% increase, Apple saw a 4.6% rise, while HP faced a 5.7% decline, largely influenced by the decrease in Chromebook sales.

Outlook for the Holiday Season and Beyond

Brian Lynch, a research analyst at Canalys, suggests that the holiday shopping season may offer some improvement despite ongoing supply chain challenges. He stated, “Sales will improve in Q4 QoQ despite supply chain issues, largely due to holiday-related consumer demand around the world.”

He further explained that this improvement will likely be driven by lower-cost, less material-intensive devices, as consumers tend to opt for less powerful options, reducing strain on component manufacturers.

However, Canalys anticipates relatively stable performance in Q4 in terms of year-over-year growth, followed by marginal, consistent growth in 2022 and subsequent years.

Methodology Note

It is important to note that Canalys’s market survey methodology tracks sales into the channel, meaning sales to retailers like Best Buy or Staples, rather than directly to end consumers.