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Will PC Sales Ever Make A Comeback

October 20, 2017 by  
Filed under Computing

Beancounters at Gartner have been adding up some numbers and reached the conclusion that sales of traditional PCs are still falling.

Things might pick up next year, but PC sales have continued to fall and analyst always say “things will get better next year.”

Gartner said that PC shipments will drop by nearly eight percent this year, and another 4.4 percent in 2018. By 2019, 16 million fewer traditional PCs and notebooks will be sold than were shipped this year.

However, much of this will be offset by the rise in spending on high-end notebooks so that the overall PC market will by 2019 be at pretty much the same level it was last year.

Tablets — defined by Gartner as basic and utility ultramobile devices — will also decline over the period to 2019.

But despite the declines in traditional PC sales, Gartner said it was a misconception that everyone has gone mobile, noting that its own research found that users depend just as much on PCs or tablets as they do on smartphones. One big difference between smartphones and PCs is that people are replacing their handsets much more regularly.

Ranjit Atwal, research director at Gartner Atwal said: “Users holding onto their PCs for longer remains a major issue for the PC market. In contrast, users continue to replace their smartphone quite frequently.”

Business PC shipments could return to growth by the end of this year, driven by faster Windows 10 replacement in many regions — especially in Western Europe.

“Despite the fact that prices have been rising due to higher component costs, Windows 10 replacements have kept the PC market relatively stable through 2017,” said Atwal. “We estimate that the PC market (desk-based, notebook and ultramobiles) is set to return to 0.8 percent growth in 2018,” he continued. According to Gartner, this trend would be driven by growth in Russia and China.


Can HP Out Design Apple?

January 7, 2016 by  
Filed under Computing

The maker of expensive printer ink, HP has out designed Apple and created a much thinner notebook that Sir Jonny Ive could.

For years Apple has been “king of the thin” producing ever more anorexic designs, for ever more dollars. But now it appears that task was not as difficult as the Tame Apple Press claimed, and even HP can do it.

HP’s EliteBook Folio will be in the shops for $999 in March and will be $300 less than Apple’s status symbol and will co-operate better with business networks because it runs Windows.

HP EliteBook Folio Piano HingeMeasuring 11.5 x 8.2 x 0.47 inches for the non-touch model and 0.49 inches thick for the touch version and weighing less than 2.2 pounds.
It’s slim body is made from CNC-machined aluminium. Jobs mob’s MacBook weighs more and is fatter at its thickest point (0.14 to 0.52 inches).

Unlike the MacBook, the EliteBook Folio sports a 180-degree piano hinge, which could come in handy for giving presentations for collaborating. HP’s effort also has Bang & Olufsen speakers which give a better sound quality than the Apple equivalent.

The screen can be a UHD screen (3840 x 2160 pixels). The MacBook has a disappointing lower-res 2304 x 1440-pixel panel. The Folio can have a similar screen in touch or non-touch if you want a better battery life.

The EliteBook Folio has two USB-C ports and an audio jack. It is still better than the one more USB-C port of the MacBook. HP has an optional Thunderbolt 3 dock for when you need more connectivity options, as well as various USB-C adapters for Ethernet, VGA and HDMI.

HP is offering a wide range of configuration options, including your choice of 6th-generation Core m5 and Core m7 processors, 8GB of RAM and 128GB, 240GB or 256GB SSDs. The average battery life is 10 hours.

Still Steve Jobs must be spinning in his gave to be outclassed by someone as historically pedestrian and reliable as HP.



PC Sales Continue The Downward Trend

July 13, 2015 by  
Filed under Computing

Gartner is reporting the biggest slump in PC sales for almost two years. The second quarter report saw 68.4 million units shifted in the three-month period, a year-on-year reduction of 9.4 percent, and the steepest drop in seven quarters.

What’s more, the prediction is that the next quarter will see a further reduction of 4.4 percent.

It seems that the dislike of Windows 8, coupled with the impending arrival of Windows 10, has battered the sales of new PCs.

The fact that most PC users will be entitled to a free upgrade, coupled with the fact that chip and RAM technology haven’t moved on at a spectacular pace this year, has created a perfect storm among consumers who are waiting it out for their machines to be born again on 29 July (or 30, or 31, or possibly 1 August).

If you’re reading this and thinking ‘It’s just a dying market’ you’re not wrong, but you have only to look at today’s IDC figures to see that this really is made of Microsoft.

IDC is even more pessimistic than Gartner, quoting 66.1 million units, down 11.8 percent year on year.

But more importantly, when drilled down to the OEMs, you can see where the real problem lies. Apple is the only company in the top five not rooted in the Windows ecosystem.

It is also the only manufacturer to see a rise in its market share, and is now the fourth biggest vendor in the world, up 16.1 percent. Acer at number five has seen its share plummet by 25.9 percent.

Things were a bit rosier this time last year, because businesses were migrating away from Windows XP (not all of them, mind). This year, there’s no ballast and a lot of hesitation to see exactly how Windows 10 does before big orders start being deployed in enterprises.

“The price hike of PCs became more apparent in some regions due to a sharp appreciation of the US dollar against local currencies,” said Mikako Kitagawa, principal analyst at Gartner.

“The worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh.”

IDC’s Loren Loverde, VP of worldwide PC trackers and forecasting, said: “We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC.

“Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”

Meanwhile, Apple, despite having a tiny market share for its OS X operating system at just 7.5 percent, according to this month’s Netmarketshare figures, has managed to avoid being the winner or loser OEM by being the referee, which is a nice trick if you can do it.

Both analyst firms see the top three remaining as Lenovo, HP and Dell. Nothing to see there.



Processors Continue Downward Trend

February 22, 2012 by  
Filed under Computing

Analyst over at Carnegie have said that world chip sales are likely to be only $22.7billion in January, compared to $23.8 billion in December.

Seasonally adjusted, that would be down 1-2 per cent on a monthly basis and mean that actual chip sales will likely fall 15-16 per cent on a yearly basis. The reason for the fall, the analysts say, is due to disk drive shortages in Thailand which have forced costs to rise. The PC market is likely to be more back-loaded this year, the report notes.

Handset chip sales were likely also soft in January. Chips for cars were softer after a strong December. Other quirks, such as an early Chinese New Year also contributed the low figures in January. Although several chip makers indicated the inventory problems in fourth quarter had ended, Carnegie thinks that the indicator shows that the trend will continue into this year.

PC’s are the biggest chip users, followed by cell phones. Cars, appliances, base stations, and instruments are other significant users, the analyst said.



HP Makes Some Executive Changes

November 3, 2011 by  
Filed under Computing

HP has appointed former Boeing Company executive John Hinshaw as CIO.

In the newly created role of EVP of Global Technology and Business Processes, Hinshaw will oversee IT and shared and administrative services, including indirect and services procurement. Hinshaw also will be in charge of optimising business processes across the company.

Hinshaw was previously VP and general manager of Boeing Information Solutions at The Boeing Company, where he was responsible for running a new business.

Prior to Boeing, Hinshaw was SVP and CIO at Verizon Wireless. Earlier in his career he also served as a consultant with Accenture.

Hinshaw will join HP as a member of its executive council on 15 November, reporting to HP president and CEO Meg Whitman.

Meanwhile, HP also announced that Craig Flower has been promoted to SVP and CIO. Flower will be responsible for data management, application architecture, global business intelligence, sales, and product development and engineering applications. Flower has held a wide range of IT management positions within HP since 1984.

The new appointments come at a time when HP is losing executives right and left. Earlier this week, HP lost its CTO of the HP personal systems group, Phil McKinney, when he announced this retirement.

Less than two weeks ago HP’s chief strategy and technology officer Shane Robison announced his retirement.

In September, HP abruptly removed controversial CEO Leo Apotheker from his corner office and replaced him with Meg Whitman.





HP Changes Its Mind,Decides To Keep PC Unit

October 28, 2011 by  
Filed under Computing

Hewlett-Packard Co. has decided to retain its PC division after all. So says its newly appointed CEO Meg Whitman.

In its announcement, HP said it conducted a “data-driven evaluation” of the impact of cutting off its Personal Systems Group (PSG) and concluded that it was just too important to its supply chain, procurement and overall brand.

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” Meg Whitman, HP president and CEO, said in a statement. “HP is committed to PSG, and together we are stronger.”

HP is the world’s largest maker of personal computers.

As Whitman considered a spin-off, rival CEO Michael Dell worked to capitalize on HP’s self-imposed uncertainty while also offering advice. Dell believed a spin-off or sale was a bad idea, and argued that despite sluggish PCs sales, “it’s a growth market.”

Dell has predicted that the number of PCs in the world would grow from 1.5 billion now to about 2 billion in a few years.

Other critics of the idea argued that the separating the PC division from HP’s other product lines would hurt the company’s ability to sell into enterprises and would cost it some leverage in buying parts, such as disk drives.

This is Whitman’s first big strategic decision for HP. In keeping the PC division, she is holding on to a division that generated $40.7 billion in revenues in 2010.


Microsoft’s Windows Revenues Plummeted By 30%

January 28, 2011 by  
Filed under Computing

Revenues from Windows sales declined 30% last quarter compared to the same period the year before, Microsoft said on Thursday.

But in an earnings call with Wall Street analysts on Thursday afternoon, Microsoft said that revenues from the Windows group actually climbed by 3%. It called that “in line” with the quarter’s global PC sales growth.

The difference in the two numbers was due to the inflated revenue in the comparative quarter – 2009’s fourth – which had been boosted by a Windows 7 pre-launch “spike,” and by the $1.71 billion in revenue that had been deferred to account for the free upgrades Microsoft handed out to customers who bought Vista in the months just before Windows 7 launched.

When the spike and deferred income revenues in 2009’s fourth quarter are removed, Microsoft said, Windows’ revenues of $5.05 billion inched up that 3% from last year’s $4.92 billion.

Four quarter revenues were 5% higher than the $4.79 billion in 2010’s third quarter. Rob Helm, an analyst with Directions on Microsoft, tried to explain Microsoft’s accounting.

“When the launch ‘spike’ and the deferral are both ignored, Windows revenues climbed 3%,” said Helm. “When just the spike is ignored, Microsoft took a 5% hit.” Only when both the spike and the deferral are included does the balance sheet show a 30% decline, he stated.

Helm said that the Windows 7 launch spike boosted 2009’s fourth quarter by $560 million. “My guess is that it’s a matter of computer manufacturers buying a bunch of extra licenses then, anticipating the launch of Windows 7, and increased PC sales,” he said.

But the number to focus on is “3%,” the year-over-year increase in Windows revenues when all the deferred and spike-driven income is tossed aside. “It just shows how tightly Windows 7 sales are yoked to PC sales,” Helm said. “When the PC market slows, so does Windows.”

Earlier this month, both Gartner and IDC estimated global PC sales had climbed about 3% — Gartner said 3.1%, IDC said 2.7% — in the last three months of 2010 compared with the same timeframe last year.

Microsoft noted several times that consumer PC sales slowed dramatically last quarter, adding that netbook sales had been particularly soft. Business PC purchases, however, were up. And Windows’ sales reflected those trends.

Overall, Microsoft listed its revenues at $19.85 billion, a record for the October-December quarter. Sales from the company’s Entertainment and Devices division, helped immensely by the success of Kinect and its halo effect on the Xbox 360 game console, grew by a whopping 55%, the best showing of any Microsoft group.