According to the NPR/AP newswire, sales of personal computers remain flat, with an increase of just 2% in the second quarter of this year, a striking turn of events for an industry accustomed to sales gains in the double digits. Many experts point out that while personal computer sales are flagging, sales for hand-held devices are booming, even as tough economies in much of the western world have buyers watching their wallets more carefully then during the so-called heyday of the personal computer.
Why Sales of Personal Computers are Down
Most analysts agree that the tough economy is mainly to blame for the sluggish sales, though some, such as Steve Jobs, head of Apple, say it’s because the time of the personal computer is passing as more and more users opt to use smartphones and especially tablets instead. Market research firms such as IDC and Gartner say that up to 50 million tablets could be sold this year with that number possibly doubling next year.
Others aren’t so sure; personal computers are still selling at a rate of a million every day, (the same market analysts say that PC sales will reach 362 million units this year) and an increase in sales is still an increase. Also there is the discrepancy in sales due to the different kinds of buyers. Hand-held devices are primarily purchased by individuals for personal use, whereas personal computers are purchased by the same users, but also by corporations to supply their work force, and it’s this second source of sales that appears to be the chief reason for the slowdown.
What Will it Mean if Users Switch to Tablets?
A recent article published in CNN/Money magazine by its editors, says that forecasts have changed and now expect the number of PC sales to decline annually as sales for tablets, especially the iPad, continue to increase. This forecast is even valid in the face of robust sales for laptops, the chief competitor to the tablet. The magazine cites Gartner’s report, indicating that it, too, believes sales for mobile PC’s will be down 5% from previous forecasts, but still expects laptops to dominate in the PC market.
What this all means is if tablets continue to sell, or increase in sales, consumers are likely to find not only lower prices, but more choices as computer companies now find themselves competing not just with each other, but with hand-held device makers as well.
Sources
- “Rebooting The PC Industry: Tablets Force A Shift” NPR/AP News feed viewed July 19, 2011
- “PC sales continue slump amid iPad takeover” CNN/Money.com viewed July 19, 2011
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