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IDC blames smartphones and tablets for sharp PC decline

Research firm IDC has posted the numbers for worldwide PC shipments in Q1 of 2013, and they show the steepest decline ever in a single quarter since the company has been monitoring the industry. Global PC shipments during Q1 of 2013 totaled 76.3 million units. That number represents a decline of 13.9% compared to the same quarter in 2011.

The posted decline in Q1 of 2013 was nearly twice the expected decline of 7.7% according to IDC. IDC also notes that the poor showing in Q1 marks the fourth consecutive quarter of year-over-year shipment declines for the industry. Computer shipments in the U.S. declined by 12.7% year-over-year and declined 18.3% compared to Q4 2012.
 
IDC says that despite mild improvement in economic environment around the world and some new PC models with Windows 8 shipments were down significantly across all regions compared to the same quarter of 2012.

Declining mini notebook shipments took a big chunk out of the low-end market with tablets and smartphones also contributing to divert significant spending from the computer industry. IDC also reports that weak reception for Windows 8 has hurt the industry and computer makers continue to struggle to differentiate themselves from others on the market.

"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."

HP is still the top computer vendor but its worldwide shipments fell more than 23% year-over-year. Lenovo remained in second place and came close to closing the gap between it and HP. Lenovo posted double-digit, year-over-year growth in the U.S.

Source: IDC



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no one is buying prebuilt pc's
By elleehswon on 4/11/2013 10:41:49 AM , Rating: 2
because people have caught on that you can have your 10 year old son/cousin/neighborhood kid build a roaring machine from components for 1/3rd the cost of a comparable hp/dell/whaever, pc sales should be expected to sink.




RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 10:58:44 AM , Rating: 2
Right. You honestly think the BYO enthusiast market is making a significant dent in OEM sales?

You're lost.


RE: no one is buying prebuilt pc's
By elleehswon on 4/11/2013 11:12:56 AM , Rating: 2
yes, yes i think it does make a significant dent. in the past 10 years, i've upgraded my components 5 times. I've also sold off the old components save the pc case and peripherals. so, i've had 5 opportunities to buy an oem and gone the BYO self instead. the people that have bought my old hardware have passed up oem 4 times.

So, you don't think that adds up?


RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 11:15:45 AM , Rating: 2
quote:
So, you don't think that adds up?


I know it doesn't. You're such a tiny percentage of the overall computer market that it just doesn't matter. You're a rounding error.


RE: no one is buying prebuilt pc's
By xti on 4/11/2013 12:04:47 PM , Rating: 2
its true. enthusiast/DIY make up next to nothing. just accept it, geeks are a minority.


RE: no one is buying prebuilt pc's
By GotThumbs on 4/11/2013 11:15:36 AM , Rating: 2
It may be a small %, but not insignificant IMO.

Everyone in my family (parents and brothers) has a custom built PC (AMD powered),except for the five laptops. Two of us have our own servers that hold our movie/music collections. I'm streaming music at work from my server RTM. I've also built five systems and one server for a friend's small business as well.

Don't underestimate the number of DIYers out there. It's not really hard to build ones own system. It's simply a choice one makes IMO.

You've heard of NewEgg? Haven't you?


RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 11:19:11 AM , Rating: 2
I spend thousands of dollars a year at Newegg. And Micro Center, and other places.

However, I'm not too dim to realize that for every person who builds their own PC, there's hundreds, possibly thousands, of people who just buy a prebuilt one at Best Buy or wherever else.

You can build your own furniture too. So...did you make your own dining room table, or did you just go buy one? You can pretty easily assemble your own radio...you have a home-made radio anywhere? With a hammer and a saw, you could build your own house. Or did you buy a house that someone else had built?

The enthusiast BYO market is tiny. Disappearingly so. As a percentage of the overall computer market, it is the very definition of insignificant.


RE: no one is buying prebuilt pc's
By elleehswon on 4/11/2013 2:24:46 PM , Rating: 2


You can pretty easily assemble your own radio...you have a home-made radio anywhere? i have. crystal radio..sup.


RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 3:04:05 PM , Rating: 2
I'm sure you do.

I'm going to guess, though, that the fact that *you* made your own radio isn't going to be the basis of your further assertion then that "nobody" buys radios anymore, because you can build your own.


RE: no one is buying prebuilt pc's
By elleehswon on 4/11/2013 5:04:32 PM , Rating: 2
i never said that.. i just believe there are tons, and tons of barebones/component built pc's everywhere.


RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 5:33:27 PM , Rating: 2
I was actually pointing out that you hadn't said that...

Regardless, the fact that there are "tons" of BYO computers out there doesn't change the fact that it's a statistically irrelevant portion of the overall market.


RE: no one is buying prebuilt pc's
By bsd228 on 4/11/2013 3:11:46 PM , Rating: 2
quote:
because people have caught on that you can have your 10 year old son/cousin/neighborhood kid build a roaring machine from components for 1/3rd the cost of a comparable hp/dell/whaever, pc sales should be expected to sink.


1/3rd? Have you actually done this, and who is the vendor you're comparing to?

I've built one or two computers a year since the 90s. Rarely is there considerable cost savings. Dell and HP buy by the 1000s, I buy by the one. And PC margins have been thin since the 90s, which is why you don't see many local computer stores anymore. The vanilla PC sales model doesn't pay off.

No, I build so that for roughly the same money (+/- 10%), I can pick the components and avoid any marginal parts taken to save $10 in profit. I am particularly picky about the case and the power supply and will pay substantially more than then had I gone with those big vendors.

Even if you look at someone like Puget Sound, a boutique that makes some really well engineered PCs for a very substantial markup, you're not seeing a 3:1 price differential on parts. They might be at 50% over, and that's if you discount time and their experimentation. Which is valuable. If you're only making one at a time once a year like me, you learn much more slowly than if you're doing one a week. This is particularly notable in the quiet PC space that PS is well known for.


RE: no one is buying prebuilt pc's
By Motoman on 4/11/2013 3:38:41 PM , Rating: 2
Here's an HP unit right on their website for $319.

http://www.shopping.hp.com/en_US/home-office/-/pro...

Dual-core CPU, 4Gb RAM, 500Gb HD, etc. etc. And Win8, naturally.

I'm sure he could build that for ~$106.

You can only really save money when you're talking about building a gaming rig, or maybe a server. There's big margin in those. Regular, mainstream desktops (and laptops) have little, if any, margin. The really cheap stuff, potentially like this $319 desktop, are often sold as loss-leaders to try to get you to buy more stuff on top of it.


By TakinYourPoints on 4/12/2013 1:48:23 AM , Rating: 2
I've only built my own PCs since the mid-90s, and I know that I'm a tiny niche of the overall market.

People who build their own PCs barely register as a blip against mainstream PC sales from OEMs. It wasn't enough to boost PC numbers back when it was booming and it isn't enough to eat away at OEM numbers now that they're in trouble.

It is really myopic to think that the DIY crowd makes that much of an impact in comparison, and I've been building for almost 20 years. Enterprise sales alone dwarfs the DIY market.


"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan














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