PC Market Declines Despite End of Windows XP Added: Wednesday, April 16th, 2014
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The personal computer market keeps declining, even despite consumers being forced to upgrade their computers because of the end of Windows XP support.
According to various researches, China’s Lenovo is still at the top of the business, ahead of HP, while Taiwan’s Acer saw a falloff in sales of 15%-20% compared to 2013, though remaining in 4th place worldwide behind Dell.
At the same time, the PC market is becoming more concentrated. For example, the proportion of Windows PC sales from outside the top 5 makers (Lenovo, HP, Dell, Acer and Asus) has declined from 50% to 35%. Acer is reported to be struggling to regain profitability, while Asus saw first-quarter revenue down 3%, though it leads the market for “hybrid” devices that combine tablet and notebook functionality. It should be noted that these PC figures don’t include tablets with detachable keyboard like Microsoft’s Surface.
Talking about smaller PC makers, everyone could see how the intensifying pressure in the consumer PC business has forced Sony into quitting the business. In addition, Korea’s LG was also mulling a withdrawal when its local government cut back on PC purchases. Apple, Toshiba, Samsung, Sony and Fujitsu had single-digit market share last year, altogether totaling to 31.4% of the market.
A key driver within the last quarter was businesses replacing old computers in the face of Windows XP approaching its end in April. Microsoft’s move drove growth among business buyers in the developed countries, where the installed base of computers is larger and older. The industry also expects to see the impact of XP migration to continue throughout this year. However, in the Asia/Pacific region, where the machines are comparatively newer, the shipments declined by over 10%.
As for the market of the United States, it was stagnant, with shipments of around 14 million. All makers outside the 3 big corporate suppliers (HP, Dell and Lenovo) saw consistent declines in sales.
Desktop, laptop and ultrabook sales have been decreasing during the last 2 years, because people have switched to portable devices – smartphones, tablets and “phablets”, which allowed accomplishing computing tasks at home and on the go. Taking into account that consumer sales used to make up 50% of the PC business, that move has intensified competition among makers for corporate contracts.
April 16th,2014Posted by:
Wednesday, April 16th, 2014
|decline? its more like people got smarter and started building their own (and it got easier too)|
|posted by (2014-04-16 18:45:09)|
|@1 yeah you are right and we go tired of feeding CEO's big salari|
|posted by (2014-04-16 19:25:06)|
|What well thought out comments. Its substantially cheaper to buy off the shelf than self build in all developed markets at the minute, and has been for several years.|
Whats happening is people moving to tablets and phones for your basic surfing and email, set top boxes for streaming and consoles for games. Actual PC's are becoming the enthusiasts preserve. Corporate are moving to BYOD to try and save a few $. From what I see the players who shouldn't ever have been in the market have dropped out- I mean Sony Pc's WTF ??? who ever bought them? Lenovo will always be top of the corporate pile (IBM's legacy) and more consumers are moving to ASUS as they are a decent brand, realistic pricing and good reliability. I had one of their tablets fail under warranty recently (first ASUS product Ive had fail) and their customer service were pretty damn good, Ill continue to buy from em.
|posted by (2014-04-16 20:47:18)|
|Hey folks, I understand everything everyone is saying, yes, people are moving more towards tablets and phones. But there are still alot of us that still like downloading movies and software and converting those movies to watch in standalone dvd players. (Signed - still stuck in the old days!)|
|posted by (2014-04-16 23:06:26)|
|@3 " Its substantially cheaper to buy off the shelf than self build in all developed markets at the minute, and has been for several years."|
Im from Australia and i know for a fact if you want anything high end it is far cheaper to put it together yourself and even medium range it is much of muchness.
|posted by (2014-04-16 23:37:20)|
|"Im from Australia and i know for a fact if you want anything high end it is far cheaper to put it together yourself and even medium range it is much of muchness."|
Yeah agreed, I was referring more to what the article was looking at- shipped off the shelf units. You want to buy a bog standard i3 or i5 with integrated graphics or low end separate card its cheaper to buy off the shelf.
Start getting into a gamer rig or even top of the line processors/fast memory and yeah you can source the parts and build cheaper. But that only confirms my premise that its becoming a hobbyists preserve.
PC's have become commoditised, a bespoke system commands a premium. The signs of an over matured market.
I can build the equivalent of an alien-ware system cheaper, but I am not the consumer demographic for an alien-ware system.
|Despite? You mean BECAUSE of the end of XP.|
"...despite consumers being forced to upgrade their computers because of the end of Windows XP support."
The end of XP forces people not to upgrade to the new stuff with Win8 with the NSA's newest security holes and back doors.
Everyone I know refuses to upgrade their equipment because of Windows newer versions being unnecessary (don't fix what isn't broken) and the ones that do get new hardware use GNU/Linux/BSD just because they know for a fact that companies like Google and Microsoft are building security holes into their OS's for the NSA. They might be doing that to Linux too, but it's not as well documented.
But XP does enough stuff well enough that those same people might consider getting a new rig if it came with XP.
|he said /she said ppl with the introduction of linux/google/android phones and phablets many have decided that sitting in your boxroom or moms basement on a hulking great box and monitor when in a 4 inch phone you can work on a faster machine with quad core and better security than anything microsoft for less than the cost of a monitor, and you can take it out anywhere with you,this is the reason for the drop off in the PC market place.Moreover people have found in the last 10 years that Linux is just as good and more secure than windows as well as free and they save 224 GBP not buying into windows 7 ultimate BS.|
|I do like the way there is a switchable GUI in the new Android phones so you can make it look like win8 or linux Android so fullfilling the requirements of the aesthetically pleased as well as those who know how to use one.|
|Microsoft screwed themselves by using good old Intel monopoly tactics. Two years ago I decided to learn Linux ie, Ubuntu and I have never looked back. Out of the 5 computers in my house (2 of which are script miners) only one, the HTPC is running Windows and that's primarily just for playing games that haven't been ported to Linux yet. With AMD's Mantle adding new developers daily and it's planned support for Linux the Future looks bright as Operating System's get Built/Modified based on the needs of the population and not just dictated to people based on yielding maximum profits for Microsoft, one the Richest Companies in the World dictates we need.|
|posted by (2014-04-17 07:31:29)|
|Every PC I've used was either found in the trash or bought 2nd hand, ever since I started learning about computers roughly 11 years ago.|
Either way, I managed to get them all running with whatever the current Windows system OS was at the time; and I never bought an OS from MS.
My reason for that approach: whether it's Microsoft or Apple, I wasn't gonna let them leave me computer-illiterate.
|I don't understand the headline. Why would the PC market shrink DESPITE the end of Win XP SUPPORT? When was the last time a PC with win XP was sold? XP still works and will work forever and the end of tech support for an OS does not tempt potential customers to upgrade their software.|
|scaring people to upgrade, upgrade or your computer will be hacked is what they are trying to make people believe and it seems to be working|
|Still on XP and going Strong!!|
|posted by (2014-04-17 21:55:41)|
|Let us stay on XP without the support(medium) Micosoft|
I totally agree with you.
|Win XP will NEVER die|
|They should end support on Vista first.|
With or without support- XP will not die today.
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