Rebooting the PC Industry: List of Companies Primed to Benefit

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(List compiled by Andrew Dominguez and Danny Guttridge. Andrew owns AAPL stock. Data sourced from Finviz)

In the PC industry, tablet computing is the new black . And this is only a decade or so after black became the new beige.

PC makers are scrambling to rejig their business strategies in order to prosper in what Apple CEO Steve Jobs calls “the post-PC era” (viaCNET).

Are we really in the post-PC era? Recent data suggests so, at least in Europe and the US. According to an earnings release Tuesday, Apple sold five times as many iPhones and twice as many iPads as it did Mac computers during the last quarter, reports Jordan Robertson of theAssociated Press.

Apple is a leading smartphone handset maker and is by far the number one tablet maker.

Apple’s data reflects the trend of slowing PC sales growth in Europe and the US. In the 2nd quarter of this year, PC shipments grew by around 2%, below the estimates of Gartner and International Data Corp. (via The Wall Street Journal).

So where do PC makers go from here? Intel CEO Paul Otellini told investors that PC makers and chipmakers should shift their focus to the developing world, particularly the BRIC countries (Brazil, Russia, India, China) where a rapidly growing middle class is expected to drive double digit growth in the industry.

Simultaneously, Intel, the market leader in PC chips, is trying to grow its tablet and smartphone chipset businesses (iPad’s do not have Intel Inside), a field dominated by the ARM chipset architecture designed by ARM Holdings, adds Robertson of the AP. 

Interested in which companies stand to gain most from the shifting PC landscape? To help you with your own research, here is a list of PC manufacturers and chipmakers that are active in both the PC and tablet computing markets.


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List sorted by market cap.

1. Apple Inc. (AAPL): Market cap of $348.49B. Its products and services include Macintosh (Mac) computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a range of accessory, service and support offerings. Mac OS X comprises about 10.7% of the US PC market while iOS comprises 17% of the smartphone market and most almost 90% of the tablet market.

2. Intel Corporation (INTC): Market cap of $122.26B. It designs and manufactures computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components. It offers a range of microprocessors designed for the notebook, netbook and desktop market segments that includes Intel Core i3 processor, Intel Core i5 processor, Intel Core i7 processor, Intel Core i7 processor Extreme Edition, Intel Atom processor and previous-generation Intel processors. It also offers flash memory products used in portable memory storage devices, digital camera memory cards, solid-state drives (SSDs), and other devices, including 40GB and 80GB SSDs for notebooks, desktops and tablet computers.

3. Hewlett-Packard Company (HPQ): Market cap of $73.86B. It is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. It provides commercial PCs, consumer PCs, workstations, handheld computing devices, calculators and other related accessories, software and services for the commercial and consumer markets. It recently released its HP TouchPad tablet computer.

4. Dell Inc. (DELL): Market cap of $32.85B. It is a technology company that offers a range of technology product categories, including mobility products, desktop personal computers (PCs), software and peripherals, servers and networking products, storage and services. It sells consumer PCs and laptops under the Dell and Alienware brands. It also manufactures Android and Windows based smartphones and tablets.

5. ARM Holdings PLC (ARMH): Market cap of $12.81B. It designs microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools. ARM processor architecture and physical IP is used in embedded microprocessor applications, including cellular phones, digital televisions and personal computer (PC) peripherals, smart cards and microcontrollers. ARM also licenses and sells development tools directly to systems companies and provides support services to its licensees, systems companies and other systems designers. Products that use ARM processors include the Nintendo DS and 3DS, Canon EOS 5D Mark II, Zune, HTC Hero, Apple iPhone and iPad, Motorola Droid X, Google Nexus S, Samsung Galaxy Tab, Motorolla Xoom and HP TouchPad.

6. Advanced Micro Devices, Inc. (AMD): Market cap of $4.46B. It is a global semiconductor company. It primarily offers x86 microprocessors, for the commercial and consumer markets, embedded microprocessors for commercial, commercial client and consumer markets and chipsets for desktop and notebook personal computers (PCs), professional workstations and servers. It also offers graphics, video and multimedia products for desktop and notebook computers, including home media PCs, professional workstations and servers and technology for game consoles. It is looking to enter the tablet and smartphone chipset market.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: AAPL , AMD , ARMH , DELL , HPQ , INTC

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