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PC Industry Is Now On a Two-Year Downslide (theverge.com)

According to analyst firm Gartner, PC shipments have declined for eight consecutive quarters -- "the longest duration of decline in the history of the PC industry." The company found that worldwide PC shipments totaled 68.9 million units in the third quart of 2016, a 5.7 percent decline from the third quarter of 2015. The Verge reports: The firm cites poor back-to-school sales and lowered demand in emerging markets. But the larger issue, as it has been for quite some time, is more existential than that. "The PC is not a high priority device for the majority of consumers, so they do not feel the need to upgrade their PCs as often as they used to," writes Gartner analyst Mikako Kitagawa. "Some may never decide to upgrade to a PC again." The threat, of course, comes from smartphones, which have more aggressive upgrade cycles than PCs and have over time grown powerful enough to compete with desktop and laptop computers at performing less intensive tasks. Tablets too have become more capable, with Apple pushing its iPad Pro line as a viable laptop replacement. PC makers are feeling the pressure. HP, Dell, and Asus each had low single-digit growth, but Acer, Apple, and Lenovo all experienced declines, with Apple and Lenovo each suffering double-digit drops. Meanwhile, the rest of the PC market, which collectively ships more units per quarter than any of the big-name brands, is down more than 16 percent. Some good news is that 2-in-1 devices have experienced year-over-year growth. Kitigawa also notes: "While our PC shipment report does not include Chromebooks, our early indicator shows that Chromebooks exceeded PC shipment growth."

14 of 310 comments (clear)

  1. $$$ Workstations by rfengr · · Score: 4, Insightful

    Sees, I just spent $33k for a dual Xeon, 512 GB, and 4 Telsa K40. I suppose that will make up for > 10x standard PCs. I suppose you either need the horsepower, and it's still not enough, or you don't need it at all. I just hope the high end workstations continue to be available; noting Intel stopped their motherboard production.

    1. Re:$$$ Workstations by msauve · · Score: 4, Funny

      "they do not feel the need to upgrade their PCs as often as they used to"

      "I just spent $33k for a dual Xeon, 512 GB, and 4 Telsa K40."

      Microsoft is way ahead of you. They recently came out with Windoze 10, which will suck up all that power just to report your personal life back to the mothership.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    2. Re:$$$ Workstations by rfengr · · Score: 4, Interesting

      EM simulation of millimeter wave antennas and circuits. The tools will probably never run on the cloud.

    3. Re:$$$ Workstations by ShanghaiBill · · Score: 4, Funny

      EM simulation of millimeter wave antennas and circuits.

      Cool. I envy you.

      Well, I have to go. My boss wants me to slightly change the shade of blue behind our company logo on 187 webpages ...

    4. Re:$$$ Workstations by hairyfeet · · Score: 4, Interesting

      The problem is they are reading the data incorrectly, they are taking data from a BUBBLE and trying to claim that was the norm when in reality it was no different than the housing bubble, an anomaly that did not reflect the actual state of the market.

      You see the bubble was caused by the "MHz wars" where a PC from a couple year, hell even a year ago at the start of the bubble, simply would not be able to run the latest software because of the insanely quick jumps in MHz. In just one 4 year period during the MHz wars my personal PC went from 400Mhz to 2GHz, 5 times the power in just that small amount of time! The consumer didn't WANT to replace their PCs that often but they did not have a choice because this years software simply ran like ass on last year's machine and probably wouldn't run at all on a PC two years old.

      Now compare this to today, what mainstream software is there out there that won't run on a C2D or Phenom II X2 from 2008? I have a C2Q Media Center PC I use at the shop as my desktop and to do analog to digital video conversion...its got 4 cores, 8Gb of RAM, and a 2TB drive...why would I need to replace it? Even video gaming isn't immune to this as there are plenty of videos (and I have plenty of customers who can back this up) of playing the latest and greatest mainstream games on C2Qs and Phenom II X4s and they play at 1080P just fine, no issues.

      The simple fact is even grandma has the equivalent of a fire breathing funny car for a PC which is spending a good 90% of its time in idle, so what would be the point of replacing it? Before my father passed away last year I looked into replacing his office PC, it was a 2.3Ghz Phenom I quad and I had a batch of newer systems in, surely he needs more power running his office than a PC from 2006, right? After collecting data for 3 months I found in reality most of the cores were parked most of the time and the system never got above 50% utilization...replacement simply was not needed.

      The only reason you are seeing replacement in the ARM space is they are in the middle of their own MHz bubble which I would argue is already coming to an end as they too hit the thermal wall and users find they can't "feel" any difference between that quad core tablet or phone they got 3 years ago and the new octocores sitting on shelves. Bubbles pop folks, what we are seeing is NOT the "end of the PC" but it simply going back to being replaced only when it fails and I have a feeling we will be seeing the popping of the ARM bubble soon and it would have probably already popped if the industry wasn't forcing upgrades by refusing to support their older products.

      --
      ACs don't waste your time replying, your posts are never seen by me.
  2. Win10 by Anonymous Coward · · Score: 5, Insightful

    I'd have to wonder if Windows 10 is helping to cause this slump. People don't want Windows 10, but that's all you can really get for an OS unless you're willing to learn something entirely new. Not an option for the majority really. As a result more people will cling to their older PCs for as long as it'll last. If they aren't using it to play games, it's likely still good enough for what they were doing before.

    1. Re:Win10 by Gadget_Guy · · Score: 4, Interesting

      I think Windows 10 is causing the slump, but not because people don't want it - it is because they already have it. There has always been a large segment of people who used a new version of Windows as the excuse to buy a new system; either because the OS needed the extra grunt or it was simply deemed to be the easiest way to upgrade for non-techies.

      Along comes Windows 10, which basically threw itself onto everybody's existing systems. All of a sudden, there was no reason to buy new computer. As we all know, recent computer hardware is still fast enough to run average software so the benefit of buying a new system is miniscule.

  3. Well, DUH by 93+Escort+Wagon · · Score: 5, Insightful

    For a lot of people, they can do everything on their phone that they would've done on a desktop/laptop computer a decade ago. Those folks just don't need a computer, period, nowadays. Heck, even though I work in computing I find myself doing email and web browsing on my phone (or tablet) most of the time when I'm away from my office.

    And even those of us who actually do need a computer mostly don't need to keep updating to the latest and greatest hardware anymore. Phil Shiller said it was sad when people are still using five-year-old machines (BTW, Phil, how long has it been since Apple updated a computer? Feels like five years); but in reality the difficulty of the tasks most of us need to do hasn't kept pace with advances in hardware. Swap an SSD into any decent five-year-old laptop and you're probably still golden, unless you're a gamer.

    --
    #DeleteChrome
    1. Re:Well, DUH by future+assassin · · Score: 5, Interesting

      I'm the opposite. Only thing I do on my phone is check contact info for say a business or directions. I'd rather wait till get home or to my shop before I do any computing on my desktop. Even my 17 year old would rather do things on his desktop than on his phone.

      --
      by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
  4. hate these studies by bloodhawk · · Score: 5, Insightful

    I hate these studies, they always seem to neglect the changing face of PC's. PC's require upgrades at far less frequent rates, a 3, 4 or 5 year old machine will work perfectly well for the majority of users, this doesn't mean PC usage has declined or something has superceded it, it simply means the technology in PC's has now far exceeded the needs of the average user allowing them to keep their machine far longer than ever before and hence a decreased annual sales of PC's

  5. Old computer with better spec than the new ones by denisbergeron · · Score: 4, Insightful

    in 2012, I bought a ASUS G75VX-DH72 with an Intel core I7 3630QM 16G (±3ghz) 256SSD + 500G 17.3 (full HD) with a NVIDIA GTX 870M Windows 8 for $1,700
    I upgrade the HD for 1tb ssd and 2tb hdd 2 years ago (and obviously, I have w10 and Linux on it)

    Today, 4.5 year later, I can buy a
    ASUS G752VL Intel Core i7 6700HQ (±3ghz) , Windows Home 10 64-Bit, 16GB , 1TB HDD, 17.3" IPS FHD Display, NVIDIA GTX 965M for 1800$

    Yeah, right, Why I need a upgrade ?

    --
    Ceci n'est pas une Signature !
  6. Re:My kid's new laptop is an i7 by Anonymous Coward · · Score: 5, Insightful

    > [T]he school gives you grief if the laptops more than a year old.

    Fuck em. Seriously.

    Are they paying you to provide the laptop? No? Fuck em.

  7. Also everyone has one by Sycraft-fu · · Score: 4, Informative

    In the US it is getting to the point that nearly everyone has a computer. Even people who are pretty poor usually already have a computer. Probably not a great one, but they have one. There is market saturation. So when everyone has one, and the pace of hardware has slowed so you don't need a new one as often, well ya sales are going to go down. The market is mature. That happens to markets in the long run, they can't grow forever.

    I get tired of this attitude that some journalists (and investors) have that the only states are "growth" and "death". No, industries can be mature, stable, lots and lots are. That's what's happening in computers.

  8. Re:Lenovo and apple only? by Zontar+The+Mindless · · Score: 4, Interesting

    I don't think you're a fool. Bought my wife a MBP last year. Our home is now Windows-free. No more "Honey, this update is taking forever, can't you do anything about it?" No more Windows Just Crapped Itself And Ate Her Report At 11PM on Sunday (and *of course* she has her semi-monthly department heads meeting at 9 the following morning...). And no more worries about what Windows is trying to pull with her data, and on my network. BLISS!!!

    I thought I would resent having to pay too much for hardware that I know full well I can get for half the price. But after a year? Not a bit.

    Best damn overpriced kit I ever forked out for, and I'd do it again in a heartbeat. Damn straight I would.

    --
    Il n'y a pas de Planet B.