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Worst PC sales drop in history

worldwide technology consultancy ultrabooks windows 8

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#1 Hum

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Posted 11 April 2013 - 00:56

PC sales certainly haven't been good over the past year or so, but this past quarter was record-setting bad.

Shipments of PCs fell 14% worldwide last quarter, according to IDC. It was the worst yearly decline since IDC began tracking the data in 1994.

The drop in PC shipments was nearly twice as bad as the 7.7% decline IDC expected, and it marked the fourth consecutive quarter in which PC shipments fell year-over-year.

Gartner, another technology consultancy, posted similar figures on Wednesday. The analysis firm said 79 million PCs were shipped worldwide in the first quarter -- the fewest number of shipments since the second quarter of 2009.

PC industry titans have tried to innovate themselves out of their sales slump, but recent attempts have failed. Ultrabooks, super-thin notebook computers, debuted to great fanfare in 2011. But sales disappointed, and firms quickly slashed their ultrabook sales forecasts.

In October 2012, Microsoft (MSFT, Fortune 500) debuted Windows 8, which received mixed reviews, and sales have been muted compared with past Windows launches.

Bob O'Donnell, a vice president at IDC, said in the company's report that "the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market."

He slammed WIndows 8's "radical changes" to the user interface, particularly the removal of the iconic start button, and intimated that the switch is confusing for customers.

"Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market," O'Donnell said in the report.

Microsoft and its rivals felt the crunch in after-hours trading.

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#2 Motoko.

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Posted 11 April 2013 - 01:05

This could be Linux's moment to pick up MS's tab in PC sales

It was stated by another member that the failure of Windows 8 prompted Dell to sell Alienwares with Ubuntu preinstalled, it's a worthy risk to assess any potential benefit even though the market for Linux games is growing, there needs to be that "killer app" to make that homerun. It'll happen but the execution has to be right for people to take notice.

#3 Athernar

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Posted 11 April 2013 - 01:05

The thing about Windows 8 wasn’t just [Microsoft's] distribution. As somebody who participates in the overall PC ecosystem, it’s totally great when faster wireless networks and standards come out, or when graphics get faster. Windows 8 was like this giant sadness. It just hurts everybody in the PC business. Rather than everybody being all excited to go buy a new PC, buying new software to run on it, we’ve had a 20+ percent decline in PC sales -- it’s like "holy cow that’s not what the new generation of the operating system is supposed to do." There’s supposed to be a 40 percent uptake, not a 20 percent decline, so that’s what really scares me. When I started using it I was like "oh my god..." I find [Windows 8] unusable.


:whistle:

#4 Yusuf M.

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Posted 11 April 2013 - 01:11

I don't think Windows 8 is to blame, at least on the PC side. I think the main reason PC sales have dropped are smartphones, tablets, and the fact that PC hardware lasts longer now than 10 years ago. I bought my laptop in 2008 and aside from a dead battery, it's still good enough to run Windows 7/8. I plan on buying a tablet in the near future for convenience. If I want to watch videos on YouTube, I'd want to do it conveniently and I want to be able to move around while doing it. I can do it on my phone but a 4" screen isn't big enough for comfortable viewing.

#5 Dot Matrix

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Posted 11 April 2013 - 01:12

So, what is this article saying? They're pointing fingers every which direction here. What we're seeing a shifting market, something that's been happening for years.

Partially what the IDC is saying is true, PC last longer than they did 10 years ago. My desktop has been as is since circa 2007, yet runs Windows 8 like a champ.

#6 Growled

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Posted 11 April 2013 - 01:24

I don't think Windows 8 is to blame, at least on the PC side. I think the main reason PC sales have dropped are smartphones, tablets, and the fact that PC hardware lasts longer now than 10 years ago. I bought my laptop in 2008 and aside from a dead battery, it's still good enough to run Windows 7/8. I plan on buying a tablet in the near future for convenience. If I want to watch videos on YouTube, I'd want to do it conveniently and I want to be able to move around while doing it. I can do it on my phone but a 4" screen isn't big enough for comfortable viewing.


You are so right. I use my phone for many of the things I once used a PC for. My tablet I use to watch movies and TV shows, something I once used my PC for. In fact, I rarely use my PC anymore. And like you said, the things last a long time now so I am good to for several years. I doubt I am alone either. That is not helping Microsoft's bottom line.

#7 theyarecomingforyou

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Posted 11 April 2013 - 01:24

Windows 8 needed to compete with tablets while holding onto the desktop segment; unfortunately it did neither. Windows RT has significantly underperformed in the market place (the Surface RT and third-party offerings) and Windows 8 has been plagued with bad press. It's not a bad product but, like with Vista, once you build a bad reputation it's hard to shift it. Numerous major companies—including Dell, Samsung and Valve—have heavily criticised Windows 8 and users remain divided.

Is Windows 8 entirely to blame for the downturn? No, but it's a major factor. Now Microsoft needs to focus on Windows Blue and Windows 9, making sure to respond to criticism from users and critics.

#8 Dot Matrix

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Posted 11 April 2013 - 01:26

Windows 8 needed to compete with tablets while holding onto the desktop segment; unfortunately it did neither. Windows RT has significantly underperformed in the market place (the Surface RT and third-party offerings) and Windows 8 has been plagued with bad press. It's not a bad product but, like with Vista, once you build a bad reputation it's hard to shift it. Numerous major companies—including Dell, Samsung and Valve—have heavily criticised Windows 8 and users remain divided.

Is Windows 8 entirely to blame for the downturn? No, but it's a major factor. Now Microsoft needs to focus on Windows Blue and Windows 9, making sure to respond to criticism from users and critics.


Microsoft should have picked up the slack others made and promoted the Hell out of the Surface RT. Personally, I think it's time for Microsoft to abandon some of these OEMs. They're inability to compete could be is a contributing factor to the declining market.

#9 68k

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Posted 11 April 2013 - 01:27

I'm not surprised. Windows 8 has nothing to do with it. My five year old PC still has plenty of power to meet all my needs. Hence, there is absolutely no reason why I should upgrade. Same with my laptops, and same for generally every consumer who has bought a PC over the last few years.

Perhaps Microsoft should make Windows 9 more resource hungry and force users to upgrade, like Apple does with Mac OS X. Just kidding, they won't.

#10 OP Hum

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Posted 11 April 2013 - 01:27

You are so right. I use my phone for many of the things I once used a PC for. My tablet I use to watch movies and TV shows, something I once used my PC for. In fact, I rarely use my PC anymore.


Explains all those typos ... :shifty:

#11 wv@gt

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Posted 11 April 2013 - 01:31

A lot of the article wants to point the blame at Windows 8. This is a contributing factor, but look at it that way, Windows ME and Vista both have/had some very serious negative feedback, did PC sales drop that much then because of word of mouth? However, many other factors play into this, mobile phones are on the rise, Dell/HP shakeup, poor PC designs, and the biggest thing of all, I think its partly due to less people needing to upgrade their current computer. PCs these days are not upgraded to new ones as often because the hardware specs are good enough now. This all can't be about Windows 8, look at the whole picture.

#12 Dot Matrix

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Posted 11 April 2013 - 01:36

Maybe we'll see Blue sooner before June? :p #WishfulThinking

#13 Growled

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Posted 11 April 2013 - 01:39

Explains all those typos ... :shifty:


Probably so. :D

#14 Dot Matrix

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Posted 11 April 2013 - 01:44

Windows 8 needed to compete with tablets while holding onto the desktop segment; unfortunately it did neither. Windows RT has significantly underperformed in the market place (the Surface RT and third-party offerings) and Windows 8 has been plagued with bad press. It's not a bad product but, like with Vista, once you build a bad reputation it's hard to shift it. Numerous major companies—including Dell, Samsung and Valve—have heavily criticised Windows 8 and users remain divided.

Is Windows 8 entirely to blame for the downturn? No, but it's a major factor. Now Microsoft needs to focus on Windows Blue and Windows 9, making sure to respond to criticism from users and critics.


I've started noticing, I'm doing more with my mobile devices, than with my PC nowadays too.

If you want to take that case farther, I have a room mate who uses nothing more than her iPhone.

#15 Roxkis

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Posted 11 April 2013 - 01:50

Maybe we'll see Blue sooner before June? :p #WishfulThinking


The **** must have really hit the fan if even you posted something that could even be considered
as negative toward windows 8.

My reaction to that post:

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