Skip to main content

Forecasting the Ongoing Decline of the PC Market

Worldwide PC shipments totaled 76.3 million units in the first quarter of 2013 (1Q13), that's down by -13.9 percent compared to the same quarter in 2012, according to the latest market study by International Data Corporation (IDC).

To put this decline in perspective, this market performance was the worst since IDC began tracking the PC market quarterly in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines.

Despite some mild improvement in the economic environment and some new PC models offering the troubled Microsoft Windows 8 operating system, PC shipments were down significantly across all regions -- when compared to a year ago.

Fading mini notebook PC shipments have taken a big chunk out of the low-end market while tablets and smartphones continue to divert consumer spending.

PC industry efforts to offer touch capabilities and ultra-slim systems have been hampered by traditional barriers of price and component supply, as well as a weak reception for Windows 8.

The PC industry is struggling to identify innovations that differentiate PCs from other products and inspire consumers to buy, and instead is meeting significant resistance to changes perceived as cumbersome or costly.


"At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market," said Bob O'Donnell, Vice President at IDC.

Microsoft will have to make some very tough decisions moving forward -- if it wants to help reinvigorate the PC market. Meanwhile Intel can no longer afford to hope that the current situation improves.

IDC believes that the impact of slow demand has been magnified by the ongoing restructuring and reorganizing efforts impacting HP and Dell -- two key players that have clearly lost momentum.

Lenovo remains a notable exception as it continues to execute on a solid attack strategy. Mid- and bottom-tier vendors are also struggling to identify growth markets within the U.S.

Among the most vulnerable group of vendors are the whitebox PC system builders, which are undergoing consolidation that is affecting shipments as well as the distribution sector.

In summary, the PC industry is now at 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.

If you doubt the severity of the situation, then just consider the results in the U.S. market.

It had yet another dismal quarter in 1Q13 -- contracting -12.7 percent year on year -- with a drop of -18.3 percent compared to the fourth quarter of 2012. With total volume falling to 14.2 million, quarterly shipments reached their lowest level since the first quarter of 2006.

With this latest figure, the U.S. is now in its tenth consecutive quarter of year-on-year contraction (excluding a brief moment of growth – less than 2 percent year on year – in 3Q11).

It's difficult to forecast a forward-looking upside, given this backdrop. But perhaps there's opportunity for the surviving vendors -- who could still rejuvenate the PC form factor. Is a PC industry recovery likely to be the outcome? Only time will tell.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Contact Center as a Service Gains AI Benefits

Enterprise leaders with large customer care organizations are exploring Artificial Intelligence (AI) applications to improve their online customer experience, increase operational efficiency, and reduce costs to improve profitability. Trained AI can be used to automate tasks, such as answering routine questions, freeing up contact center agents to focus on more complex inquiries. AI can also be applied to personalize the customer experience by recommending new offerings. Additionally, AI can be deployed to analyze vast amounts of existing customer data to identify support trends and patterns, which can be used to improve the overall customer experience. Customer Care AI Market Development Worldwide Contact Center (CC) and Conversational AI, including virtual assistant end-user spending is projected to total $18.6 billion in 2023 -- that's an increase of 16.2 percent from 2022, according to the latest market study by Gartner. "Near-term investment growth rates for CC and CC Con