Thursday, April 11, 2013
PC disaster in making
First-quarter shipments of PCs fell 14 percent worldwide from the same time last year, according to International Data Corp. That's the deepest quarterly drop since the firm started tracking the industry in 1994.
PCs are going out of style because they typically cost more than smartphones and tablets, and aren't as convenient to use. Most PCs sell for $500 to $1,500 while the initial out-of-pocket expense for a smartphone runs as low as $99 while an array of tablets sell for $200 to $300.
But the companies most threatened by the mobile upheaval are those that depend on PCs to make most of their money. This group includes technology heavyweights such as Windows maker Microsoft, PC makers Hewlett-Packard Co. and Dell Inc. and PC chip maker Intel Corp.
"It's time for these companies to make some critical decisions and ask themselves, 'How are we going to turn this ship around?'" said technology industry analyst Patrick Moorhead.
99% BAD HARDWARE WEEK: PC is facing mainframe destiny. Adapt or vanish.