The Legacy PC Has Peaked And Is Not Lifted By The Tide Of Small Cheap Computers

IDC’s latest predictions and summary of the personal computing market suggests“As the Smart Connected Device market matures, and emerging markets drive more of the growth, the percentage of the market made up of phablets plus regular smartphones is expected to increase. In 2014 IDC expects smartphones to represent about 70% of the total market. By 2018 that will grow to 75.6%. While consumers in places like the United States and Western Europe are likely to own a combination of PCs, tablets, and smartphones, in many places the smartphone — regardless of size — will be the one connected device of choice.” they accept that the legacy PC, you know the expensive things taxed by M$, has peaked and will not recover in units shipped for the forseeable future.

The established markets for legacy PCs are locked in but the emerging markets are not. Eventually, the established markets will realize they are being left behind and follow. There’s just no reason to pay higher prices just because you think you can afford it. The small cheap computers are in line with Moore’s Law which is the way IT should go. M$ cannot continue to hide a high-priced OS in a bundle with small cheap computers. Giving their OS away or paying people to install it prolongs the monopoly but cannot sustain it. Essentially the monopoly has a terminal disease.

See A Future Fueled by Phablets – Worldwide Phablet Shipments to Surpass Portable PCs in 2014 and Tablets by 2015, According to IDC.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.

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5 Responses to The Legacy PC Has Peaked And Is Not Lifted By The Tide Of Small Cheap Computers

  1. ram says:

    MIcrosoft can make all the announcements it wants, the fact is there are now multiple manufacturers of of very low cost computers, Microcontrollers (MCUs), and
    Digital Signal Controllers (DSCs). The IC (chip) manufacturers support the Linux development environment and NOT Microsoft’s. That means the applications and programs will continue to develop on Linux and NOT Microsoft.

  2. wolfgang says:

    …skip the tax…

    more an more news that the empire may strike back to quash low price computer market erosion.

    http://www.zdnet.com/microsoft-fights-android-and-chrome-os-with-dirt-cheap-windows-8-1-pcs-and-tablets-7000033274/

    buyer in store seeing real windows at lower price than even chromebook and only interested in price most likely to go with windows. no reason not to. grumbly linux fan maybe pay more out of spite, but long term is end of chromebook.

    no big deal for microsoft either. two choices. one is give away OS for low end and get no profit but stifle more chrome. other is lose low end and get no profit and leave field open for more chrome. microsoft in same fix both ways, but likely to take down chromebook profits if aggressive. when chrome go away, maybe profit come back, just like netbook.

  3. ram says:

    See my other comment about modern high computation power low cost chips. I’ll add here, that entire self-contained computers that can smoothly run word processsing, spreadsheets, and browsing are now available for under USD 33 in wholesale quantities. There is obviously no space for “software licenses” in such a business environment.

  4. kurkosdr wrote, “The market doesn’t care if there is an MS tax or not. 10 dollars more or less, nobody cares as long as the product is good.”

    The tax used to be ~$50 for M$ aand $50 for the OEM. Consumers care about that when a decent PC is around $300. M$ was sweating when the PC cost ~$1K so the OEMs made sure to sell boxes without monitor and other peripherals so the price looked like $700 or so. Now consumers can really notice the price when the retailer shows price with/without that other OS.

    Of course, wealthy/foolish people are welcome to throw money to the wind if they want but they should not force consumers to do the same. Along comes Android/Linux and folks can skip the tax.

  5. kurkosdr says:

    “you know the expensive things taxed by M$,”

    Android “small cheap time wasters err… computers” are taxed by MS too (coutresy of the broken patent system).

    The market doesn’t care if there is an MS tax or not. 10 dollars more or less, nobody cares as long as the product is good.

    The cost of Windows license is a problem for geeks building their own PCs or people who want to upgrade.

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