Massive Drop in Apple Shipments
CNBC reports the steep decline in Apple shipments of their Mac computers, and Crunchbase details the venture capital (VC) funding drop. How are these two things linked, and how do they relate to the freight market? Let’s explore the connection between these three factors and their crucial role as an indicator of economic health.
Apple Shipments Plunge
- Apple’s global computer shipments fell by 40.5% YoY in Q1 2023.
- Apple’s worldwide PC market share dropped from 8.6% to 7.2% between Q1 2022 and Q1 2023.
- They aren’t the only ones. All top five computer makers saw double-digit shipment drops.
Apple’s CFO Luca Maestri says the company expected these declines in Mac and iPad sales due to the challenging macroeconomic environment.
VC Funding Takes a Hit
- Global VC funding in Q1 2023 was $76 billion, a 53% drop YoY from $162 billion.
- The reductions spanned all stages, with each stage down by 44%-54% YoY.
- The collapse of Silicon Valley Bank further weakened the funding environment.
Apple Shipments + VC Funding’s Impact on Freight Market
The decline in Apple shipments and the drop in VC funding has a negative ripple effect on the freight market. Many VC-backed companies provide Macs to all employees, so the decrease in VC funding directly impacts the demand for Apple computers. As fewer startups are funded and existing companies struggle with operations, the need for office goods, including computers, drops as a result.
The reduced demand for office goods leads to more slowdown in the freight market. Since the freight market is a key indicator of economic health, the slowdown signals an overall weakening economy.
The dramatic drop in Apple computer shipments, coupled with the sharp decline in VC funding have had a cascading effect on the freight market. This interconnected scenario highlights the global economy’s vulnerability and the importance of multi-market research and monitoring.