Posted on 04/12/2013 8:09:38 AM PDT by null and void
In another sign of the worldwide shift in preferred personal devices, PC shipments posted the steepest decline ever in a single quarter, according to the International Data Corporation Worldwide Quarterly PC Tracker (IDC).
Worldwide PC shipments totaled 76.3 million units in the first quarter of 2013, down -13.9 percent compared to the same quarter in 2012 and worse than the forecast decline of -7.7 percent, according to the IDC. Despite some mild improvements in the economic environment, PC shipments were down significantly across all regions compared to a year ago, marking the worst quarter reported since IDC began tracking the PC market in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines.
The reduction in shipments isn’t entirely shocking, given the obvious cannibalization from tablets and smartphones. Smartphones shipments are expected to continue their historic rise at a rate of 24 percent CAGR from 2011 to 2016, according to Andy Oberst, Strategic Vice President of Qualcomm, and PC makers are collectively bracing for the change, as other indicators have risen throughout the past year. DRAM content growth is reported slowing, as slim notebooks have limited space for it, and tablets and smartphones have no use for it at all. Instead, its low-power variant, mobile DRAM, is seeing an increase. Additionally, the chip market outlook was downgraded in 2012, with the weak PC market mostly to blame.
"Although the reduction in shipments was not a surprise, the magnitude of the contraction is both surprising and worrisome," said David Daoud, IDC Research Director, Personal Computing. "The industry is going through a critical crossroads, and strategic choices will have to be made as to how to compete with the proliferation of alternative devices and remain relevant to the consumer. Vendors will have to revisit their organizational structures and go to market strategies, as well as their supply chain, distribution, and product portfolios in the face of shrinking demand and looming consolidation."
PC makers had pinned their hopes on the launch of Microsoft’s Windows 8 OS, which is a complete overhaul of the operating system with touch-screen capabilities. Unfortunately, these new shipment trends are indicating that the upgraded operating system has not had the desired effect on consumers.
Bob O’Donnell, IDC Program Vice President, believes it is clear that Windows 8 not only failed to provide a positive boost, but also appears to have slowed the market.
"While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices,” said O’Donnell. “Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market."
Microsoft, at least in public, does not appear to be on the verge of making tough decisions at the moment, however. A Microsoft spokesperson told the Wall Street Journal that, along with their partners, they planned “to continue to bring even more innovation to market across tablets and PCs.”
My new one just arrived, I just have to put it together.
And no Windows 8 either. Ubuntu and Windows 7.
Government purchases of desktops and laptops are way off this year despite the fact that government is spending more money than ever before.
The Microsoft salesmen & vendors will find this thread shortly and will claim just that
Looking back and not that far back, this is a Steve Jobs revolution. The iPhone and iPad were revolutionary devices that have upset the Microsoft and the desktop PC “Apple Cart”.
Good article from ZD Net regarding this and WIn 8:
Did my A. Pole/Willie Green snark really need a </sac> tag?
Hardware has out paced software for a number of years now. Even a 5 year old system can run most popular applications with ease. Most people in a tough economic climate don’t see a need to upgrade.
Mine is being shipped to me UPS right now.
Windows 7 OS.
I like Metro tile. I abandon print media years ago for the internet. So my customized start-up has WSJ live tiles, weather, the sports I LIKE and Free Republic. I also use the consolidated people contact. There are so cool apps that can snap metro programs to your desktop.
I think it is funny all the people that went apologetic over Ipad and criticized MS because they were in the past. Then MS does something bold and the first complaint is it is different than my old system.
You didn’t get the GREAT 8?
I'm keeping my Windows XP computer and I'm going to build a new PC with Linux.
I'm old school,,,I still have a TRS-80, C-64 and KAYPRO (a portable computer, the size of a briefcase) around.
along with a picture next to an IBM computer circa 1958.
I’ve been using Windows 8 for a couple of months now. It works very well! There is an add-on called “Classic Shell” that gives back the Start button. Once in the desktop, you can not tell the difference between Windows 7 and Windows 8.
I, too, am happy with Win 8. Much more stable than any other version I have used. And I’ve been around PC’s since their inception.
LOL! Tell me about it!
We expect Microsoft to improve everything without changing anything.
They fail...
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