All people are casting attention to PC market for its largest composing of global semiconductor revenue, its previously prosperous kingdom as well as the unexpected fast decline. Since first weakness in 2012 from 2001, PC industry seems to be walking toward its twilight as an old man; the decadency is so obvious that I wonder whether the end of PC industry is coming, maybe in next few years, or longer.
PC sales in the first quarter of this year saw the worst performance with plunge reaching 13.4% comparing with the previously expected 3.4% of growth, according to report from IHS. Interesting, IDC pointed out the significant driving force-Wins 8 contributes to the descent of PC shipments in Q1 2013.
“At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market,” said Bob O’Donnell, IDC Program Vice President, Clients and Displays. “While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market.”
Personally, however, I disagree with the Winds 8’s negative impact on PC industry. Despite the increased cost of the PC equipment, there are also very expensive mobile devices (such as the high-end smartphone and Tablet PC) attracting hordes of consumers. And it is because of the new functionalities including touch screen that mobile devices find market and become the strong competitor of PC. Wins 8 suits the consumption trend, bringing new characteristics, so overall, it is a promoter.
Some changes have happened on PC supply chain
Starting from 2012, PC supply chain has begun to change: the old PC giants such as Intel, HP and Dell all suffered dropping whether in turnover or in product shipments. Samsung involving both segments saw falling in DRAM shipments but mobile devices rising; in some way, the company is a smarter. If PC industry fares as what IHS predicts- showing improvement from the second half of this year, along with the growing unit price of DRAM due to the reduction of manufacturers, it will certainly gain profit. In addition, Samsung is strongly supported by its mobile devices business, LED products…
By contrast, with the decline of PC related suppliers, mobile semiconductor providers grow. Qualcomm accounts for the first position in mobile part supply, having several times higher larger market shares. Notwithstanding serious of adjustment comprising moving inventory, cooperation with Chinese mobile phone manufacturers (such as Lenovo and ZTE), introducing its LTE platform, Intel still can not significantly raise its shares when facing the robust challenge from Qualcomm, MediaTek and Broadcom, another two successor in last year’s mobile semiconductor industry.