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Tablet adoption is no longer a first world problem for the PC industry

Analytics firm IDC has lowered the global outlook for the PC market even further for 2013. IDC reduced its outlook as mature markets are now projected to outgrow emerging markets in 2013. Worldwide PC shipments are now expected to fall by 9.7% for 2013, expanding the largest market contraction on record.

According to IDC, mobile devices will continue to erode demand for traditional PCs – this fact is seen by many as one of the reasons for Microsoft CEO Steve Ballmer’s “retirement”. IDC now predicts that the market as a whole will decline through at least 2014 with single-digit modest growth from 2015 on.

China is expected to see a double-digit decline in shipments this year compared to 2012. Factors contributing to that include high levels of stagnant inventory and continued enthusiasm within China for tablets and smartphones.

IDC predicts that the PC market will shrink by nearly 10 percent for 2013

"The days where one can assume tablet disruptions are purely a First World problem are over," said Jay Chou, Senior Research Analyst, Worldwide Quarterly PC Trackers at IDC. "Advances in PC hardware, such as improvements in the power efficiency of x86 processors remain encouraging, and Windows 8.1 is also expected to address a number of well-documented concerns. However, the current PC usage experience falls short of meeting changing usage patterns that are spreading through all regions, especially as tablet price and performance become ever more attractive."

IDC expects a slow rebound in computer shipments beyond 2014 as consumers begin to replace PCs that have seen significantly lengthened lifecycles in recent years. After 2014, businesses are also expected to begin taking their first serious look beyond Windows 7.

Source: IDC

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By Tony Swash on 9/2/2013 9:43:26 AM , Rating: 2
Back in 2011 Brian S Hall predicted the death of both Windows and Office by 2016, I wonder if he could possibly be right? He is still sticking to his prediction.

I liked this from the article:

Ballmer, for all the good he did for Microsoft — and anyone who says differently is either too young to be taken seriously, or too foolish to be tolerated — made the singular critical strategic mistake that has befallen so many of his ilk: a belief that the past is prologue.

Whereas Steve Jobs sought to destroy everything in his past, to remake the world, Ballmer sought to bring more and more of the past into the future. Ballmer’s way was right, for nearly a generation. Then it was completely wrong.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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