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It Was Flat Sales That Helped Microsoft Become America's #5 PC Maker (arstechnica.com)

An anonymous reader quotes Ars Technica: Microsoft was the fifth-biggest PC maker in the U.S. in the third quarter of this year, according to industry advisory firm Gartner. The top spot in the U.S. belongs to HP, with about 4.5 million machines sold, ahead of Dell at 3.8 million, Lenovo at 2.3 million, and Apple at 2 million. The gap between fourth and fifth is pretty big -- Microsoft sold only 0.6 million Surface devices last quarter -- but it suggests that Microsoft's PC division is heading in the right direction, with sales 1.9 percent higher than the same quarter last year. The company pushed down to sixth place was Acer. The current quarter should be better still; the Surface Pro, Surface Laptop, and Surface Studio have all been given hardware refreshes which, when combined with the always-busy holiday season, should stimulate higher sales.

Globally, both Gartner and IDC reported a flat PC market (up 0.1 percent in Gartner's view, down 0.9 percent in IDC's), after the previous quarter's modest growth.

"The PC market continued to be driven by steady corporate PC demand, which was driven by Windows 10 PC hardware upgrades," said one Gartner analyst.

In defining what constitutes a PC, Gartner includes notebooks and "premium" ultramobile devices -- but does not include iPads or Chromebooks.

51 comments

  1. Dupe from Wednesday by Anonymous Coward · · Score: 0

    Link for reference.

    1. Re:Dupe from Wednesday by Anonymous Coward · · Score: 1

      With views at arsholetechnica decreasing it is easy to see their transparent attempts to get more by doing duplicates on slashdot.

    2. Re: Dupe from Wednesday by Anonymous Coward · · Score: 0

      Blind leading the blind. Slashdot has been declining hard.

  2. What will drive the next refresh? by Bite+The+Pillow · · Score: 4, Interesting

    New Windows versions have dictated hardware refresh up to now. With Windows 10 being the last version, there's no line in the sand. Hardware is good enough. You don't need faster at this point, the bottlenecks are external. Especially office work.

    They are going to have to make software even more bloated to encourage hardware buys, or expect that division to suffer.

    1. Re:What will drive the next refresh? by b0s0z0ku · · Score: 2

      Updates may stop being supported on older hardware. There are still Win 10 versions, they're just not (as) visible to the end-user.

    2. Re:What will drive the next refresh? by e432776 · · Score: 4, Interesting

      I might add that not just Windows but a lot of software seemed to need new hardware to run well a couple of decades ago. Today it does seem that older hardware, even from 5 yrs ago, is good enough. This used to be pretty unimaginable. I don't know if the slowing rate of improvements on the hardware side is diving this or is just a coincidence.

      Meanwhile, the price of PCs is increasing. This makes sense also, someone else commented that computers are becoming more like durable goods such as a car. If you will have the same unit for a long time, then it makes more sense to get a "premium" one, compared with if you were going to have to replace every couple of years.

      In many ways this is a positive- at least from the environmental perspective and in terms of our having quality hardware being designed and available. More OT, I think Microsoft did a lot to push the PC HW business to higher quality, though the down side seems to be that they also follow Apple's habit of producing hard-to-repair, glued together, machines.

    3. Re:What will drive the next refresh? by Anonymous Coward · · Score: 0

      Make the pcs last shorter lives will help. A lot of the surface machines look like they will go 2/3 years max.

    4. Re:What will drive the next refresh? by Anonymous Coward · · Score: 1

      There's a very simple answer to this.

      Not so long ago microsoft patch dropped support for Windows 7 on 7th gen and higher Intel Processors.

      Why?

      7th Gen Intel Processors and upwards support 4K UHD, 10-bit HEVC and VP9 encode/decode..

      That's right, the BS in the media industry, and Netflix's desire to stream 4k video based on a hardware signature, requried the licensing of the processor broadly affect Microsoft's ability to continue supporting an entire platform.

      Do you really think Microsoft and Friends wouldn't force you to continuously upgrade hardware if it meant revenue assurance for them?

    5. Re:What will drive the next refresh? by Anonymous Coward · · Score: 1

      The reason for this is simple: Microsoft wants you to move heavy CPU functionality to Azure, so you have to pay them monthly for a subscription. This is why MS isn't trying to make the OS force hardware upgrades. They want everyone with thin/zero clients and paying them monthly for each CPU cycle used.

      This is the ultimate in vendor lock-in, worse than anyone has dreamed because you can't just take your Azure service and move somewhere else, or bring it in-house.

      Combine this with all the snooping data from telemetry, and it is no wonder why this is the case.

    6. Re:What will drive the next refresh? by thegarbz · · Score: 1

      Yes in the consumer arena, no in the corporate one. Windows system upgrades still drive "hardware refreshes" at major companies, even on hardware perfectly capable of running that new software.

  3. Sad news for Acer by Anonymous Coward · · Score: 0

    Bigger point is Acer offers a lot more models then Microsoft and yet they seem to really be losing market share even to Microsoft. Makes me wonder how long before Acer is done? Personally for me Acer has always been taboo in quality and warranty so I have always avoided them. Guess maybe I am not the only one?

    1. Re:Sad news for Acer by b0s0z0ku · · Score: 2

      Acer was always synonymous with mid-90s "junk laptops" for me.

    2. Re:Sad news for Acer by Anonymous Coward · · Score: 0

      Acer was always synonymous with mid-90s "junk laptops" for me.

      Is it no longer the case? Acers tend to be the cheap machines frequently featured in flyers from stores not known for quality electronics, e.g. Wal-Mart & Staples, so my mental synonym never limited them to a particular era.

  4. But how do they run Linux? by Anonymous Coward · · Score: 0

    That's the only question I have.

    I know they are expensive, but people seem to love them.

    1. Re:But how do they run Linux? by Anonymous Coward · · Score: 0

      Good for the most part. Couple kinks to work out still, last I checked.

  5. Poor Headline by Nkwe · · Score: 1

    Someone's sales are not flat or there would be no change in the ranking of PC manufacturers.

    Was the industry flat and Microsoft gained over a rival? Were both the industry and Microsoft flat but Microsoft's rivals had enough change to shift Microsoft's position? Was Microsoft flat, but industry overall changes caused Microsoft's rank to change? The headline is ambiguous. I guess I should be happy that the title wasn't "You will never believe what outrageous thing happened to Microsoft's ranking".

    1. Re:Poor Headline by Anonymous Coward · · Score: 0

      A Microsoft rival could have dipped in sales which would put Microsoft ahead of them without changing Microsoft's sales. I'm not going to research further because I don't run Windows due to their spyware and general lack of regard for the user in several respects.

    2. Re:Poor Headline by Anonymous Coward · · Score: 0

      Microsoft is to blame for the flat PC sales in total. As the current windows version is actually worse than its predecessors and MS caused hatred among its customers by disgusting tricks with Win10 force installs, people try to keep their old machines as long as they last.

  6. How come? by sanf780 · · Score: 3, Insightful

    I wonder about how Microsoft ended up selling so many Surface thingies. Most everybody hated the manufacturing quality of Surface Pro 4. Botched firmware updates happened too, like the one this week that disables the touch screen and for which you need to send your computer for repairs. What did the other companies do that let Microsoft take 5th position?

    1. Re:How come? by Anonymous Coward · · Score: 0

      Surface Pro 4 got almost universally good reviews.

    2. Re:How come? by thegarbz · · Score: 1

      You posed a question about human behaviour and referenced an issue with a device two generations earlier without any qualification as to the impact on people.

      I hate the quality of my Surface Pro 3. But the incredibly quick turnaround of problems including replacement devices shipped out a day later is what keeps me considering the next Surface Pro when my old one dies.

      On the flip side my father wanted to buy a device with this form factor right while I was having issues, so I recommended against it. He ended up buying a HP Spectre x2 which I had high hopes for. Poor sound, poor quality pen, and when he had a hardware failure he got the: "It's the responsibility of the retailer, no the resposibility of the OEM, no send it to the retailer and they'll forward it to the OEM" response. Took 3 weeks to get resolved.

      The Surface Pro was a curiosity.
      The Surface Pro 2 was solid
      The Surface Pro 3 was average.
      The Surface Pro 4 nearly killed the line and got the entire product line not recommended from consumer reports.
      The Surface Pro 5 is moving back towards more solid territory as far as I can see.

      One thing is certain: DON'T be an early adopter of small unserviceable devices.

  7. Excluding Chromebooks by Luthair · · Score: 1

    Seems odd, they perform an identical role to Windows PCs or Mac PCs

    1. Re:Excluding Chromebooks by b0s0z0ku · · Score: 3, Informative

      Only those that can run a good amount of local apps. Many Chromebooks are just glorified WebTVs. No room to save locally, no control over local apps == no privacy, Scroogle controls everything. Ta hell with that model.

    2. Re:Excluding Chromebooks by Anonymous Coward · · Score: 1

      It's easy enough to add an SD card for storage and you can always install ChroniumOS if you're worried about privacy.

  8. stop selling OS for non microsoft hardware by goombah99 · · Score: 3, Insightful

    Microsoft could stop selling their operating system for non-microsoft computers. Just like google and apple do.

    Microsoft computers, like google computers, are not built by microsoft. I suppose one could argue apple doesn't build there's either but they do design and integrate them themselves.

    Or they could just go exclusive and only support HP or Lenovo.

    THat would definitely drive the upgrade cycle.

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:stop selling OS for non microsoft hardware by fyzikapan · · Score: 4, Informative

      What? Both ChromeOS and Android are widely available on non-Google hardware.

    2. Re:stop selling OS for non microsoft hardware by Anonymous Coward · · Score: 0

      If MS does that, they will lose a lot of business. MS makes a lot of money on Windows 10 because of the telemetry data sold, and who knows what data is sent up, as that is a black box. Could it be the contents of your Office documents? Nobody knows. Those analytics are what keep MS going, next to getting people locked into Azure/O365 and having to pay MS monthly.

  9. Re:Excluding Tablets by LynnwoodRooster · · Score: 1

    Seems odd, they perform an identical role to Chromebooks

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  10. Apple's sales increased by more by goombah99 · · Score: 1

    Apples computer sales increased by 18% last year. That means just their increase alone exceeded all of the microsoft sales. Why isn't that news?

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:Apple's sales increased by more by Anonymous Coward · · Score: 0

      It's not really relevant, except that Microsoft is becoming a lot more like Apple.

      I have been using Surface machines for over 4 years now, and I've been more than happy with them despite some reliability issues. Microsoft has learned from Apple that controlling the hardware and software yields a much superior experience.

      What is interesting to me is that both Apple and Microsoft are the only companies making hardware that really demonstrates genuine thought.

      I started buying Surface machines as I could not stand the 16:9 screens every other manufacturer uses. Apple and Microsoft are the ONLY companies producing 4:3 or 3:2 screens respectively.

      In time, I imagine Apple and Microsoft will collaborate a lot more closely as it really is the best way to counter Google.

    2. Re:Apple's sales increased by more by LynnwoodRooster · · Score: 1

      Wait, what? From the Gartner link which generated this /. post, Apple's US sales were 2,189,000 units in Q3 2017, and 2,022,000 units in Q3 2018. Apple's worldwide sales were 5,385,000 units and 4,928,000 units for Q3 2017 and Q3 2018, respectively. That's not an 18% increase, that's about an 8% drop in each case.

      What should be news is not just that Microsoft has exploded on the scene in the US, but that Lenovo is simply crushing it worldwide (up nearly 11%) and in the US (up over 22%).

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    3. Re:Apple's sales increased by more by Anonymous Coward · · Score: 0

      Because that number is wrong and apple doesnt matter.

    4. Re: Apple's sales increased by more by Cmdln+Daco · · Score: 0

      The only reason to go Apple is because it's the sole proprietary platform you can use to write apps for their profitable gadget, the Iphone.

  11. Microsoft, GO AWAY. by Anonymous Coward · · Score: 0

    Microsoft, GO AWAY.

  12. THE CRIME OF THE CENTURY! by Anonymous Coward · · Score: 0

    Now that you're planning that, plan for this! Come see!

  13. Once again stealing ideas from Apple by RogueWarrior65 · · Score: 1

    Yep, I said it. Come at me, bro.

    1. Re: Once again stealing ideas from Apple by Cmdln+Daco · · Score: 1

      Ideas from Apple like a touchscreen system that runs a non-toy operating system? When, if ever, will Apple do something like that?

    2. Re: Once again stealing ideas from Apple by RogueWarrior65 · · Score: 1

      Oh, you mean the one that's such a piece of sh*t that you turn it off to keep it from doing stupid stuff? Oh, wait, I'm thinking of that crappy, worthless touchpad.

  14. Stockholm syndrome by Anonymous Coward · · Score: 0

    driven by Windows 10 PC hardware upgrades,"

    So your computer upgrades to Windows 10 behind your back, becomes dog slow, and you throw more money at Microsoft? Who is cackling with glee here?

  15. Re: Excluding Tablets by Cmdln+Daco · · Score: 1

    Most tablets run a toy operating system with no real filesystem and limited storage options. Many of them don't even support real removable storage. They don't have a USB host connector.

  16. Re: Excluding Tablets by Anonymous Coward · · Score: 0

    Tablets and phones should be excluded, as they are not a true PC, and cannot ever replace a desktop or laptop PC. To get a chromebook that can come anywhere close to the performance, storage, and local software, you have to spend as much as for a good quality (ie NOT a Dell!) laptop! PC sales have reached saturation point, with most five to six years old PCs and laptops being good enough for most people. That does not mean that the PCs and laptops are going to go away any time soon. Anyone who has tried to get any real work done on a phone or tablet knows this!

  17. Re: Excluding Tablets by LynnwoodRooster · · Score: 1

    I believe that Chromebooks are a lot closer in functionality to tablets than they are to PCs... Especially Android-based tablets; here are several that have file systems, storage options, removable storage, and USB host connector capability (with an OTG cable adapter sometimes needed).

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  18. Misleading by Tough+Love · · Score: 4, Informative

    The dup article touts Microsoft's US PC sales once again, overlooking the fact that Microsoft's miserable 600k worldwide PC sales are less than one sixth of Acer's worldwide PC sales. WTF.

    With 1% annual growth rate the technical term for Microsoft's PC effort is "vanity project". Looks like the spin department is desperately feeding the media to try to keep it on life support.

    --
    When all you have is a hammer, every problem starts to look like a thumb.
    1. Re:Misleading by thegarbz · · Score: 1

      How is it misleading? They said they are #5. They made no mention of being bigger than Acer.

    2. Re:Misleading by bazorg · · Score: 1

      With 1% annual growth rate the technical term for Microsoft's PC effort is "vanity project"

      Sorry, no. It's not a vanity project. It's a very much needed strategy to stop Microsoft from being the guys who sell unloved old-school software to old people who will run it on ugly machines; while Apple and Google sell a great ecosystem of desirable devices running all the popular apps.
      It should be obvious which way would be a dead end.

    3. Re:Misleading by Tough+Love · · Score: 0

      It should be obvious why Microsoft is peddling Linux VMs on its cloud.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  19. Zero excitement in PC industry by slasher999 · · Score: 2

    My home office / light gaming machine is a 2011 MBP that I bought new. I'm using a 12 year old 22" Samsung flat panel monitor. For a couple of months I've been looking for a replacement. Ideally it would be an AIO of some sort. I'm not really interested in another Mac. However the Dell XPS 27 is at least the same price as an iMac. Both are using 7th gen i7 process when the I-9 are available. The graphics cards in these are also a couple years out of date. Look into a desktop with a 4k display in the 27" range and you're still close to $2300 US. I can't see that money for two year old (at least) tech. Asus has a 27" AIO that you can't seem to buy, Acer isn't much cheaper. Basically there really isn't much worth buying in the PC arena unless you want to spend a small fortune for dated gear.

    1. Re:Zero excitement in PC industry by toddestan · · Score: 1

      That's because AIO PCs are a niche product (I would argue that the AIO Macs are also a niche). If you start expanding your search to a regular desktop/tower and a separate 4K monitor you'll quickly find you can get much better hardware at a fraction of the price. And if you're so inclined, you can even make a DIY AIO PC by buying a small form-factor PC that has a kit to mount to a VESA mount on the monitor, and that will also be a fraction of the price, though it won't look quite as nice.

  20. Re: Excluding Tablets by Anonymous Coward · · Score: 0

    Tablets could be all that some people need - even higher-end phones. All that's needed is a decent keyboard (some bluetooth models come close), reasonable connectivity (many cheap Windows tablets and 2-in-1s have a reasonable set of connections - USB, HDMI, audio, sometimes more. Unfortunately, tablets and 2-in-1s (including, I suspect, Surface) are treated as disposable like phones: no hardware support at all, and system software updates for 2-3 years at best. Interestingly, my cheap-junk RCA tablet, despite being abandoned by the OEM before the first year was up, still gets Windows 10 updates 3 years later and works well with them. It also runs Win32 software (like LibreOffice) fine. The display (a 10" screen) is marginal, but usable - with a better keyboard, it could serve as a light user's only computer. But I think the 10" screen is about the lower limit - a phablet or smaller would need to be able to work with a real display and keyboard, which many do not. Bigger would be better, and my RCA includes a micro-HDMI that could drive a monitor.

    IMO the tendency of Surface, Apple, and Android to cut back on connectivity is the major thing holding them back, compared to generic Windows. Windows has evolved to where, like Linux, it will run on almost anything (except phones ...).

  21. I wonder when I will get a new PC... by antdude · · Score: 1

    I still use decade old desktop PCs with 64-bit W7 HPE SP1 & Debian oldstable/Jessie v8.

    --
    Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
  22. Weird. by Anonymous Coward · · Score: 0

    Microsoft as a PC maker? I don't live in US of A, but have never seen a Microsoft Laptop or even a Surface tablet or whatever is called.

    I have Microsoft mouses though. : )