The electronics market started to decline in production in 2020 due to the Covid-19 pandemic, and recent data indicates consumers are not purchasing new electronics at the same rate as previous years. According to IDC, the first quarter of 2023 experienced the lowest shipping rates for smartphones since 2013. During the second quarter of 2023, only 269 million units were shipped, and that number is expected to drop later this year.
Smartphones are not the only electronics suffering low shipping rates. After years of decline, PCs reached a peak shipping rate of 57 percent but have since declined by 29 percent in Q1 2023, the lowest since 2020 according to IDC.
During the second quarter of 2023, PC shipments were 8.3 percent higher than the first quarter of 2023 and are expected to rise again by the end of 2023 through the beginning of 2024.
Electronics production in the European Union and the United States has declined during the last few months, with production rates in the U.S. decreasing each month since November 2022, reaching 2.8 percent of last year’s output during April of this year. In the European Union, electronics production growth increased to 22 percent in October 2022 but comparable output decreased to 4.2 percent earlier this year.
The reversal of the electronics market is alarming to many as global economies are expected to remain unstable during the second half of 2023. Trading Economics projects U.S. GDP growth will decrease, reaching as low as 0.1 percent before progressing to 0.6 percent at the end of 2023. Though we have already experienced the lowest electronics downturn, the road to improvement likely may not occur until 2024.
The decline in production of electronics is likely caused by a decrease in demand as prices increase and consumers become unwilling to pay for brand new devices. For this reason, used devices are an excellent alternative. Not only do consumers save money by purchasing used devices, they’re also eliminating unnecessary waste.
Companies such as HOBI focus on maximizing the return value of retired IT assets and ensuring they are disposed of properly. HOBI offers services such as repair, refurbishment, remarketing, resale, and recycling. HOBI prioritizes waste prevention by recovering and reusing products and recycling those that are no longer repairable or remarketable.
For more information about our ITAD services, call 817-814-2620 or contact HOBI at firstname.lastname@example.org.