Thursday, November 15th 2012
PC Industry Stares Faces Years Long Recession: Analyst
Ben Reitzes, an analyst with Barclays, slashed his already grim outlook for PC sales, and cautioned that demand for PCs could drop for "years to come." In his report, Reitzes writes "We are lowering our 2012-2016 PC forecasts due to weak macro conditions, confusion around Windows 8, ongoing cannibalization from tablets, and an elongation in replacement cycles," adding "Also, a long-running belief by PC leaders is that emerging markets are destined to reach the 100% PC-penetration rate (per person) that exists today in the U.S., however, we believe that key markets may only reach a fraction of the U.S. penetration rate as consumers now realize a balance between tablets and smart phones - at a far earlier stage in development."
A major factor in declining PC sales could be slow PC replacement rate, "with analysis pointing toward a 1-2 year extension in the replacement rate from 2010-2015 due to income diverted to 'disruptive' mobile products like tablets and smart phones across the globe." Among the companies whose price targets and estimates Reitzes cut are HP and Dell.
Source:
Forbes
A major factor in declining PC sales could be slow PC replacement rate, "with analysis pointing toward a 1-2 year extension in the replacement rate from 2010-2015 due to income diverted to 'disruptive' mobile products like tablets and smart phones across the globe." Among the companies whose price targets and estimates Reitzes cut are HP and Dell.
58 Comments on PC Industry Stares Faces Years Long Recession: Analyst
It is only a matter of time. Workstations at work will eventually become thinner and thinner (as in thin client, not actual dimensions), and home desktops will move closer to appliances.
@ EasyRhino: definitely
:rockout:
Also, I wish we could just skip tablets and go straight to personal robots.
I think Microsoft is doing the right thing with a tablet/pc hybrid platform, but they're going to have a tough time getting folks to buy thier phones. Android and iOS have too much momentum right now.
That is indeed a poor choice of words.