While the final numbers have yet to be revealed, PC sales were
expected to decline
last year. This would have been the first global decline since
2001. At the time, almost all of the major notebook and desktop
manufacturers were struggling to maintain the sales levels that
they had experienced in 2011. Many of them, including Apple
), Dell (NASDAQ:
) and Hewlett-Packard (NYSE:
), were experiencing significant declines. Not even the refreshed
MacBook Pro could prevent MacBook sales from
dropping six percent
These declines were surprising but they were not entirely
unexpected. PC manufacturers are quickly learning that their
industry is no longer the multi-billion-dollar behemoth it once
Many analysts have blamed this on the growth of tablets and
smartphones. Some have argued that the economy has played a role in
the demise of traditional PCs. Others believe that the power and
reliability of Intel's (NASDAQ:
) Core 2 Duo and quad-core processors have allowed consumers to
delay their upgrades for a few years.
Truth be told, all of those things are hurting the PC industry.
While computers previously advanced so quickly that consumers (and
some businesses) were forced to upgrade frequently, that is no
longer the case.
) long-awaited operating system, Windows 8, was expected to change
that. However, consumers do not want to buy another PC -- they
simply want to
upgrade to Windows 8
This is good for Microsoft, which heavily promoted the fact that
its new OS can make older machines run faster. It is not, however,
the result that PC makers were expecting.
Some investors might think that Apple -- which has its own OS
for Macs -- should not have been affected by the downturn of PCs.
But Macs compete in the same market as tablets and Windows-based
computers. Thus, they are facing the same challenges.
, PC manufacturers are bracing for another "difficult year" for the
"Although PC players are aggressively promoting their Windows
8-based devices at the show, their focuses are mainly reducing
costs, instead of releasing of new innovations," DigiTimes
Indeed, the 2013 Consumer Electronics Show is devoid of ideas
for new kinds of PCs. Some manufacturers have introduced concepts
for a 20-inch tablet, but Sony (NYSE:
beat them to it
last fall. Panasonic (NYSE:
) did build a 20-inch tablet with 4K resolution, however, making it
the smallest Ultra HD display available.
Aside from larger tablets and hybrid PC variations, CES is
mostly filled with Ultra HD television sets and an overabundance of
displays from Hewlett-Packard, indicating that even the biggest PC
makers are afraid to develop new PCs.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice.
All rights reserved.
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