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Global PC Industry Declines as the Threat of Substitution Increases

April 15, 2013

2013_04_11_PC_Market

Today’s chart shows worldwide PC shipments by the Top 5 vendors in the first quarter of 2013. http://www.statista.com/topics/1070/pcs/chart/1037/global-pc-market-in-q1-2013/

Worldwide PC shipments suffered the steepest decline ever in the first quarter of 2013. According to IDC, the industry shipped a total of 76.3 million units between January and March, a 13.9 percent decline over last year’s first quarter.

The industry is faced with the classic Threat of Substitution (Porters Five Competitive Forces) from the rise of smartphones and tablets, which are gradually replacing PCs as the primary computing device for many consumers.

The release of Windows 8 failed to deliver the impetus to the industry many insiders had hoped for. The radically changed user interface, Microsoft forced on consumers with Windows 8, apparently scares potential buyers away instead of winning them over.

By the end of March, six months after its launch in October 2012, Windows 8 had reached no more than 3.9 percent market share. Its predecessor Windows 7 had already reached double-digit adoption six months after its launch in October 2009.

 

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