It's not uncommon for companies to miss on their revenue line,
but when was the last time you saw a big company miss by nearly
50 percent? If the latest PC data issued on Wednesday were a
company, its stock would look like a biotech that couldn't gain
FDA approval on a late stage drug. It would be ugly.
If that sounds a bit overdramatic, here's why it's not. The
latest IDC data found that PC shipments shrunk 14 percent year
over year in the first quarter. IDC forecasted a year over year
decline of 7.7 percent.
This represented the worst quarter since IDC began tracking PC
shipments in 1994, and the fourth consecutive quarter of
Why such an alarming decline?
), Samsung and Amazon (NASDAQ:
) may be locked in a cut-throat tablet war, but if the three are
looking for something to agree on, it would be that they're
crushing the PC market.
in March that tablet shipments were up
year over year in 2012 and expected to pass PC shipments this
year. That, along with phones that are slowly becoming big enough
to be tablets, has left little room for the bulky desktop
computer that feels so 20th-century.
It's not just desktops. By 2017, laptops could have an 11
percent share, according to IDC.
) didn't do much to breathe new life into the PC either.
Companies heavily levered to the PC were hoping that Windows 8
would have the 'cool factor' of the Apple OS, but that hasn't
happened. As of January of this year, Windows 8 only has a 2.26
percent market share-well below all other Windows operating
systems and even OS X. OS X has the 'cool factor' but has about
as much market share as the Windows phones.
In comparison, Windows 7 at the same point in its product
cycle, had a 7.7 percent share.
IDC analyst Jay Chou said, "We don't have a lot of reason to
be optimistic that the market will remain in more than
However you look at the numbers, this is bad news for
companies like Hewlett-Packard (NYSE:
), Microsoft, and Dell (NASDAQ:
Will the PC manufacturers attend the same, "why doesn't
anybody like us anymore?" support group as J.C. Penney (NYSE:
Maybe Ron Johnson
and Microsoft CEO Steve Ballmer will be fighting for that Apple
retail job soon enough.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga