PC sales experiencing steepest decline in 19 years, according to IDC, due to Windows 8's impact.
The global PC market is at a critical juncture, according to IDC research director David Daoud. Strategic decisions will be crucial for vendors to compete with the increasing popularity of alternative devices.
In the first quarter of 2013, worldwide PC shipments dropped 14% year-on-year, a decline that IDC attributes, in part, to the demise of low-price notebooks. Consumers have been opting for tablets and smartphones instead.
Microsoft's latest operating system, Windows 8, has not managed to re-ignite the dwindling PC market. Windows 8 did not provide a positive boost to the PC market during the quarter, according to IDC. Bob O'Donnell, IDC's program vice president for clients and displays, stated that Microsoft will have to make some tough decisions moving forward if it wants to help reinvigorate the PC market.
Hewlett-Packard held the top spot with 15.7% of the market share, followed closely by Lenovo with 15.3%. Dell held onto the third spot with 11.8% market share, while ASUS and Acer filled the fourth and fifth positions with 8.1% and 5.7% market share, respectively.
Lenovo was a "notable exception" among the top five vendors, as its sales did not shrink year-on-year but remained flat. However, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch in Windows 8 have made PCs a less attractive alternative to dedicated tablets and other competitive devices.
To remain relevant amid the rise of these alternative devices, vendors need to make strategic choices. This includes focusing on adaptability and innovation, refreshing product lines to meet evolving user needs, emphasizing security and training, and diversifying device portfolios.
IDC's Daoud also suggested that vendors will have to revisit their organizational structures, go-to-market strategies, supply chain, distribution, and product portfolios in the face of shrinking demand and potential consolidation. This strategic pivot is essential as the PC market adapts to the disruptive rise of smartphones, tablets, and AI-powered technologies that challenge traditional PC usage patterns and sales.
This steep decline in PC shipments, IDC's steepest since 1994, underscores the need for vendors to adapt and innovate if they are to remain competitive in the rapidly changing technology landscape.
- In the face of shrinking demand and potential consolidation, vendors in the global PC market need to strategically pivot by revisiting their organizational structures, go-to-market strategies, supply chain, distribution, and product portfolios, focusing on adaptability, innovation, security, and a diversified device portfolio.
- Given the disruptive rise of smartphones, tablets, and AI-powered technologies, finance sectors should closely monitor the global PC market, as vendors' strategic business decisions will be crucial for their competitiveness in the rapidly evolving technology landscape.
