PC Market: The ICE... is gonna BREAK!

Have you ever walked on a frozen lake?  As you slowly (not a big assumption with ice) traverse the ice, you keenly listen for the tell tale auditory warning of weaknesses in your footing.  

As you walk, it's usually stone quiet, with only the rustling leaves from the surrounding trees that surrender their cash of snow due to the piles of accumulating snowflakes that canvas the land.  You hear the distinctive sound of crunching from the light ice layer giving way to your boots, then you hear it, a sound that sends shivers down your spine, that ominous “Crack” that resonates not directly below your foot but usually several feet from your footprint, a sound that resembles that a muffled gunshot underground.  The vibration alone from the sound triggers your "flight" response and dispatches you immediately in a reverse direction. 

This is exactly what HP just heard with today’s Tech Analyst results for PC Sales for the Quarter.  As they traversed the familiar terrain of the PC Market, their direction presented that ominous “Crack”. The ever present giant frozen tundra known as the PC Market, is suffering, from something, and its not global warming, as Al Gore would have you believe (wonder if Al ever returned his Oscar?). However, If you are to inclined to follow Gartner's perceptive abilities, HP aspirations for continued dominance of the PC Market just turned into Number 2.

Yes Tech-philes, it’s true, the PC Market for lack of a better term, is eroding and if HP is not careful, they will follow the fate of the polar bear stranded on a block of ice.  Now most of you will notice Apple is not in the group, well if you were to count iPad as a PC, then Apple would be number 1 and HP would be Number 2 again, hmmm there is a joke in there somewhere.  Alas, the world is not ready to adopt that definition.

"PCs are going through a severe slump. The industry had already weathered a rough 2Q12, and now 3Q12 was even worse. A weak global economy as well as questions about PC market saturation and delayed replacement cycles are certainly a factor, but the hard question of what is the 'It' product for PCs remains unanswered. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter."

-       Jay Chou, IDC senior research analyst

Now we at Wasabi Roll, although couldn't agree more about the economy, replacement cycles, and Windows 8 blah, blah, blah, we think most of the analysts seemed to be avoiding the elephant in the room. 

The PC Market’s real issue is not environmental, economic, or even logistics; it’s cultural, in a word, “iPad”.  However, Apple would likely be fine with having the iPad included with PC numbers. Its recent earnings statement that Apple sold more iPads last quarter than HP sold computers.

As a provider, you can direct the market only so far, for sooner or later, someone will provide an option that the public will prefer.  HP is learning this forthwith with their lackluster PC offerings.  HP is like that old Magician trying to enamor the crowd with the same rabbit out of a hat trick, only to be received with groans.  Others are feeling the burn as well, Microsoft is suddenly finding itself in the number two or three spots for many categories.  Even their introduction of Windows 8 hasn't really whipped up more than a courtesy “golf clap”.

So what does this all mean?  Well, if your savvy enough to recognize the sound of the “crack”, it’s either change your direction, or risk falling through the ice.  

For us as the consumer, we know what "we" would do, but the real question is “do they?", i.e., Do they know what "we" would do?  I would like to think that with all their dollars behind Market research, the answer would be yes; however, there may be too much evidence to the contrary.

Source(s):

• http://news.cnet.com/8301-10805_3-57530022-75/pcs-showing-severe-slump-as-hp-slips-to-no-2/

So “Once more unto the breach, dear friends, once more

About Rick Ricker

An IT professional with over 20 years experience in Information Security, wireless broadband, network and Infrastructure design, development, and support.

For more information, contact Rick at (800) 333-8394 x 689·