Skip to main content

How the Mobile Cloud has Disrupted Demand for PCs

Worldwide personal computer (PC) shipments are expected to fall by -2.7 percent overall in 2014 -- that's actually an improvement from the previous forecast of -3.7 percent, according to the latest market study by International Data Corporation (IDC).

Although third quarter results were a few points ahead of forecast with shipments down only -0.5 percent from the prior year, most regions and market participants saw this as a short-term gain rather than as a sign of stronger growth in the long-term.

Mature regions continue to grow while a rebound in emerging regions has taken longer -- due to a later impact from media tablets as well as slower economics and commercial replacements.

Western Europe and Japan performed better than expected in the third quarter, but the gains were driven by a rebound from last year and short-term factors such as building fourth quarter inventory earlier in the year and continuing Windows XP replacement activity.

Despite the relative short-term strength, mature regions are expected to see PC shipments decline once again in 2015 and contract slightly through the end of the forecast.

The consumer market came in slightly ahead of projections in the third quarter, but shipments are still expected to decline -5 percent in 2014. Pressure from tablets seems to be waning as penetration rises and tablets move to smaller sizes and lower price points. However, competition for disposable income from smartphones and phablets is rising.

In addition, the market was boosted in the third quarter by factors such as a rise in low-cost systems in many markets and a rebound in Western Europe, which helped restore volume to earlier levels but not without cost in value of shipments.


"The expansion of entry-level models, encouraged by Windows 8 + Bing systems, has helped improve consumer volume in recent quarters and should extend past the fourth quarter," said Jay Chou, senior research analyst at IDC. "Chromebooks are similarly boosting the low-end commercial segment. However, the market is still recovering to near stable volumes with no significant growth in the forecast."

In the best case for PCs, IDC expects to see a significant wave of replacements as users who spent on smartphones and media tablets in recent years decide they really need to update their PC. Features like touch or convertibility, as well as Windows 10 could make systems more versatile and appealing, along with lower prices.

However, IDC has seen steady progress on prices and new designs over the past year, and replacements are stabilizing PC shipments but not boosting total volume. So, what's the market outlook?

Going forward, as younger generations become more mobile and Web oriented, and emerging regions in particular prioritize converged devices, the PC market will continue to face tough competition and be more focused on replacements, with limited potential for growth. Clearly, internet adoption and the Mobile Cloud phenomenon has reshaped demand for personal computing devices.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of