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It's not only the HP business that's been weakening lately, the PC business isn't doing well either. However, according to AMD, this condition will improve before 2023 ends.
This was stated by AMD CEO Lisa Su in her Q4 2022 earnings call. According to her, the decline will reach its lowest point in Q1 2023, and will start to improve afterwards.
"The first quarter will be a low point for us on PC," said Su, as quoted by The Verge, Wednesday (1/2/2023).
Su predicts that the total PC market will shrink by 10% during 2023, dropping to 260 million. Meanwhile, IDC previously reported that during 2022 there were 292.3 million PCs shipped during 2022. IDC and Gartner have unitedly estimated that the new PC business will be healthy again in 2024.
Su predicts that the decline during Q1 2023 will occur for gaming processors and GPUs. But in the realm of laptops, according to him, there will be a 25% increase in laptop variants, with 250 different AMD laptops that will be sold in the future.
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AMD's profit in Q4 2022 plunged USD 21 million, a decrease of 98%, but they attributed the drop to the acquisition of Xilinx. Input from processors and GPUs fell by 51% and 7%, respectively.
To deal with this decline, AMD reduced shipments of processors and GPUs, and according to Su, this was done to match demand and supply of goods.
According to Gartner, the current decline in the PC market is the biggest drop in PC shipments since they began monitoring the PC market in the 1990s. The reasons are varied, from inflation, interest rate hikes, to anticipation of a global recession.
Plus, according to Gartner, many people had just bought PCs when the pandemic started, so for a while they didn't need a new PC.