Digital Lifescapes

The outlook for personal computer (PC) shipments continues to improve slightly, as competition from other devices eases in some markets, upgrades to new models boost demand, and economic conditions around the world stabilize or improve somewhat. But many challenges still remain. The decline in PC volume since early 2012 is expected to linger throughout 2016, with later years offering few opportunities to boost volumes as economic issues and other consumer electronic products sap the growth potential, according to the latest market study by International Data Corporation (IDC). In the near-term, expectations for PC growth within the fourth quarter of 2015 and early 2016 were already fairly low, as notebook computers have struggled with competition from very capable media tablets and feature-rich smartphones or phablets. The impact of falling commodity prices and foreign currencies has further depressed demand, and the ability to upgrade older hardware to Windows 10 or Linux has pr...

According to the latest worldwide market study by ABI Research, 163 million notebook personal computers (PCs) shipped globally during 2015. The majority of shipments were laptop computers, which constituted nearly 80 percent of the category. The data suggests that, despite a common belief that it will only be a matter of time before PCs meet their demise, the market still has pockets of growth where demand remains strong. That being said, it continues to evolve -- overall shipment volumes have not recovered from prior peaks. As a result, expectations have been lowered. "Industry experts greatly exaggerated the death of the PC," says Jeff Orr, research director at ABI Research . Personal Computer Market Development Trends ABI analysts now believe that the PC platform is improving by incorporating designs to provide flexibility for productivity purposes, while also adapting its shape to support tablet-like, touch-screen applications. Low-cost Chromebooks and high-cost...

Demand for mobile devices also drives the associated software upside potential. Recent estimates show that 1.74 billion smartphones, media tablets, two-in-one PCs and notebooks shipped in 2015 -- that's a year-on-year increase of 5 percent, according to the the latest worldwide market study by Canalys. Growth was driven by two-in-ones and smartphones, while tablets and notebooks declined. According to the Canalys analyst assessment, Microsoft has experienced the greatest challenge from the pivotal shift to mobility. Its share of the total mobility market was just 12 percent, against Google (Alphabet) at 70 percent and Apple at 17 percent. Shipments of mobility products running the Linux-based operating system (OS) increased by over 200 percent. This was primarily driven by YunOS shipments, which became the third largest smartphone platform in China within the fourth quarter of 2015. In the notebook PC space, there are similar shifts in the OS landscape. Open Source OS Ga...

Looking back on 2015, the personal computer industry had yet another period of transition, as most vendors either missed the shifting market demand or they had products that were perceived as obsolete. That said, the low-cost high-value Chromebook category actually gained new momentum in the market. In its recent report on notebook PCs, ABI Research analyzed current market trends in Chromebooks, laptops and ultraportable PCs and offered a forward-looking, five-year forecast on industry trends. Chromebooks will continue to lead growth for the notebook PC category, with Google Chrome OS systems (based upon Linux) expected to ship more than 8 million units by the end of 2015, increasing with a 22 percent CAGR over the next five years. "Industry professionals can expect the notebook PC market, including Chromebooks, laptops and ultraportable PCs, to remain roughly flat year-on-year in 2015, with flat to slightly positive growth projected through 2020," says Jeff Orr, resear...

The personal computing (PC) market is a source of concern for most of the established consumer electronics vendors, where chromebooks and 2-in-1 tablet devices seem to be the only bright spots for an upside. That being said, this is an opportune time for someone to introduce a breakthrough product concept. Meanwhile, the downward slide continues. Worldwide PC shipments totaled nearly 71 million units in the third quarter of 2015 (3Q15), according to the latest worldwide market study by International Data Corporation (IDC). This volume represented a year-on-year decline of -10.8 percent -- that's slightly worse than projections for a decline of -9.2 percent. Across many regions, the PC channel remained focused on clearing out the old Windows 8 inventory, before a more complete portfolio of models incorporating Windows 10 and Intel Skylake processors comes on the scene. While Windows 10 has generally received favorable reviews and raised consumer interest in PCs, IDC believes t...

Given the recent announcement that Intel will support the launch of new high-performance low-cost Google Chrome devices, perhaps Chromebooks and associated cloud services will become the new high-growth segment of the consumer electronics industry. Meanwhile, sales of media tablets have apparently peaked. Worldwide media tablet plus 2-in-1 device shipments slipped to 50.4 million units in the first calendar quarter of 2014 (1Q14) according to the latest market study by International Data Corporation (IDC). The total represents a sequential decline of -35.7 percent from the high-volume holiday quarter and just 3.9 percent growth over the same period a year ago. The slowdown was felt across all tablet operating systems and screen sizes and likely points to an even more challenging year ahead for the product category. "The rise of large-screen phones and consumers who are holding on to their existing tablets for ever longer periods of time were both contributing factors to...

According to the latest market study by Juniper Research , recent findings reveal that vendors of Tablet Hybrid devices will ship nearly 50 million units by 2018, rising from an estimated 9.5 million in 2013. Tablet hybrids, also known as 2-in-1 devices, are designed to achieve additional or improved tablet functionality through the use of accessories, or can be in the form of an Ultrabook that can have the screen removed to perform as a slate. As hybrid devices are relatively young, there is a distinct lack of industry standardization for what it actually constitutes -- when a media tablet or notebook PC becomes a hybrid. Also, due to the lack of demand for these devices, the shipment figures released by vendors do not granulate to the required level. As mentioned recently on Digital Lifescapes, Microsoft and Intel are likely to invest a significant amount of their 2014 marketing budget to motivate their channel partners to introduce and promote these high-cost devices in the m...

While much of the prior demand for media tablets was for personal use at home, usage is now increasing rapidly in the workplace -- threatening to disrupt the traditional players. Other changes in the marketplace, such as the disappointing results for Ultrabook PC sales, are forcing Microsoft and Intel to rethink their market development strategy. The two legacy PC market players have chosen to promote 2-in-1 devices -- a Windows 8 tablet with detachable keyboard -- in the hope that they gain traction in the workplace. They will likely target these devices at CIOs and IT managers that are at odds with their employee's Bring Your Own Device (BYOD) policy demands. Both companies have briefed industry analysts about their new strategy, with the expectation that their forecasts of 2-in-1 demand and adoption could eventually result in meaningful new sales for these expensive Windows 8 devices. Only time will tell if this approach will produce the desired outcome for Microsoft and Int...