Worst PC sales drop in history

[Hum]

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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[Motoko.]

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.

[Athernar]

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:

[Yusuf M. Veteran]

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.

[Dot Matrix]

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.

[Growled Member]

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.

[theyarecomingforyou]

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.

[Dot Matrix]

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.

[(Account no longer active)]

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.

[Hum]

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:

[ATLien_0]

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.

[Dot Matrix]

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

[Growled Member]

Explains all those typos ... :shifty:

Probably so. :D

[Dot Matrix]

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.

[Roxkis]

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:

[Motoko.]

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.

Me and Vista were not in the situation where the market is at this time. Apple is a major influence when we look at their offerings and their sales. They've sold more Macs than in any other quarter in the worst economic climate. Me and Vista were in periods before the economic collapse where people were consumers at their peak in technology adoption.

Everyone was buying computers and getting involved. As stated earlier, phones act in place of the PC for basic function on the web. Windows 8 was not well recieved and has a stigma that is Metro. Compared to 8, Vista never forced users to "adapt" to functionality that wasn't necessary.

Microsoft acted out of impulse because of the success of Apple's iPad and they thought they could wrap around an interface for all devices by hitting multiple targets with one stone.

The sales reflect the outcome.

[MorganX]

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.

Yes! People don't buy new PCs because they don't have one all the time, nor because the one they had didn't perform well. They bought new ones because they perceived newer was cooler and could do new stuff. There's nothing new Windows 8 presented other than a touch-centric UI with limited lasting appeal, and limited usage scenarios.

It's really all about the software. The MS Core apps shipped with Windows 8 RTM were amateurish at best. Makes Linux apps look high quality. Disastrous. And slick high-end Modern UI Zune like client that synced Surface RT Tablets and Phones would have resonated with consumers. Instead, nothing. Everything is disconnected with nothing great to install or run on it. There's no "Runs better on ..." or "Designed for ..." Windows 8 applications.

The WP8 phones don't have the apps the others do, do not support the peripherals the others do. The Surface RT is the same plus just doesn't perform as reliably as the others do. Sometimes on the tablets you can't update all your app, you have to try, retry. That's just unacceptable for a tablet.

Yeah, there's lots of reasons including the economy but to say that the Windows 8 fiasco is not a major cause is total denial.

[Dot Matrix]

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:

Where am I being negative? I've said nothing here I haven't said before.

EDIT: That gif is rather creepy...

[MorganX]

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.

Don't blame the OEMs. Just for kicks, tell me, how would you promote Surface RT to those considering an iPad or Android Tablet right now? Go for it, use bullet point, promote away, tell me why right now, Surface RT is the tablet anyone should buy. 1, 2, 3, go .... (make sure you cover performance, reliability, available applications, gaming, stability, ease-of-use):

[Dot Matrix]

Don't blame the OEMs. Just for kicks, tell me, how would you promote Surface RT to those considering an iPad or Android Tablet right now? Go for it, use bullet point, promote away, tell me why right now, Surface RT is the tablet anyone whould buy. 1, 2, 3, go .... (make sure you cover performance, reliability, available applications, gaming, stability, ease-of-use):

Personally, I'd start by publicly announcing Windows 8 "Blue". Something they should have done from the start.

[MorganX]

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.

All of those things have some impact. I will believe thy have more impact that the simple fact Windows 8 has no sex appeal when:

- Tablet sales meet or exceed PC sales.

- The situation remains the same when, if ever, MS gets decent Modern UI Apps, including the weak core apps.

MS thought they could force everyone to do things their way, because that works best for them, and it's just not working. People may in fact choose a tablet (and not a Windows tablet) in lieu of what MS is putting forth with their hybrid UI. People don't want to, "start over" nor "wait" for features and apps. There are alternatives if they can settle for a Tablet.

Just curious, how are Mac sales doing right now? Since iPad is still doing relatively well ...

Personally, I'd start by publicly announcing Windows 8 "Blue". Something they should have done from the start.

1) You have just conceded that Windows 8 is a failure and people are going to continue to not buy it and wait to see what "Blue" has to offer, and the expectations will be high and we all know it has relatively minor to moderate changes.

2) Your promo list is as sparse and Microsoft's is, basically empty. And keep this in mind, no one on Neowin is a bigger evangelist for Windows 8 than you, and your promo list is ........... That I believe, is the major problem and why Windows 8 is not helping PC sales.

[AlexMagik]

the problem is not windows8 or what. mostly, people don't need PC when the tablets got enough options to do things. emails, news, internet, skype or chats, basic word processing / excel. then you don't need a pc anymore for most families. PCs need to reinvent themselves to do more. else they will be used only by people that need more, like video/audio/image editing, coders, etc.

[Dot Matrix]

All of those things have some impact. I will believe thy have more impact that the simple fact Windows 8 has no sex appeal when:

- Tablet sales meet or exceed PC sales.

- The situation remains the same when, if ever, MS gets decent Modern UI Apps, including the weak core apps.

MS thought they could force everyone to do things their way, because that works best for them, and it's just not working. People may in fact choose a tablet (and not a Windows tablet) in lieu of what MS is putting forth with their hybrid UI. People don't want to, "start over" nor "wait" for features and apps. There are alternatives if they can settle for a Tablet.

Just curious, how are Mac sales doing right now? Since iPad is still doing relatively well ...

1) You have just conceded that Windows 8 is a failure and people are going to continue to not buy it and wait to see what "Blue" has to offer, and the expectations will be high and we all know it has relatively minor to moderate changes.

2) Your promo list is as sparse and Microsoft's is, basically empty. And keep this in mind, no one on Neowin is a bigger evangelist for Windows 8 than you, and your promo list is ........... That I believe, is the major problem and why Windows 8 is not helping PC sales.

Windows 8 is hardly a failure. Announcing updates hardly concedes "failure".

[MorganX]

Windows 8 is hardly a failure. Announcing updates hardly concedes "failure".

failure is relative. relative to the current climate and the relative youthfulness of Windows 8, promoting basically "we're fixing" it, is conceding failure given the expectations of such a significant (as promoted by MS) upgrade.

[Dot Matrix]

failure is relative. relative to the current climate and the relative youthfulness of Windows 8, promoting basically "we're fixing" it, is conceding failure given the expectations of such a significant (as promoted by MS) upgrade.

Like you said, "failure" is relative. "fixing" denotes a broken product, "improving" would be a better word. Updates aren't a bad thing, everyone else updates their products, so why is "Blue" denoting a bad thing?