M$’s fans rightly point out that M$ has a lock on business computers but…“The GOH market category, typified by Nintendo’s 3DS and Sony’s PlayStation Vita, has recently been overshadowed by gaming-capable smartphones and tablets and this trend is likely to continue. IDC research shows, for example, that the number of paying smartphone and tablet gamers will surpass the number of paying GOH gamers worldwide in 2013 and rise at a rapid rate through 2017. The number of GOH bundles shipped, meanwhile, should fall at an average of nearly 7% per year over the next five years. The installed base of GOH’s is being overwhelmed by smartphones and tablets that are used for (primarily casual) gaming.”
see IDC Mobile/Portable Gaming Forecast Finds That Paying Smartphone and Tablet Gamers Will Surpass the Number of Paying Gaming-Optimized Handheld Gamers This Year
and, further,
“The worldwide mobile phone market grew 4% year over year in the seasonally slow first quarter of 2013 (1Q13) as smartphones outshipped feature phones for the first time. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 418.6 million mobile phones in 1Q13 compared to 402.4 million units in the first quarter of 2012 and 483.2 million units in the fourth quarter of 2012.
In the worldwide smartphone market, vendors shipped 216.2 million units in 1Q13, which marked the first time more than half (51.6%) the total phone shipments in a quarter were smartphones. The market grew 41.6% compared to the 152.7 million units shipped in 1Q12, but 5.1% lower than the 227.8 million units shipped in 4Q12.”
see More Smartphones Were Shipped in Q1 2013 Than Feature Phones, An Industry First According to IDC
and
“The Middle East and Africa PC market experienced a significant decline of 14.1% year on year during the first quarter of 2013, according to preliminary results released by International Data Corporation (IDC), the premier global market intelligence and advisory firm for the information technology and telecommunications markets. Total PC shipments in the region slowed down to 5.3 million units, with desktops declining 18.4% year on year to 2 million units, while notebook shipments declined 11.2% year on year to total 3.3 million units.”
see IDC Reports Steepest PC Market Decline Yet For the Middle East and Africa Region as Microsoft Windows 8 Is Unable to Spur Incremental PC Demand
So, the monopoly is momentarily OK, teetering on the brink of a chasm of great depth, but where’s the up-side? Their gaming niche is shrinking. Their mobile effort is relatively feeble. Their lock on business is being eroded by BYOD (Bring Your Own Device), Google’s cloud apps, and LibreOffice and OpenOffice.org. Their lock on retail shelves is busted wide open with the small cheap computers running */Linux being everywhere. Is there any doubt that retailers will give space to GNU/Linux now, in the face of all the other weakness?
Erosion starts at the edges. It can be very gradual but it can also open gaps in the dike, sponsoring a flood. 2013 seems to be the year that a flood swept away the Wintel monopoly. M$ and Intel still have huge revenue but M$ is relying more than ever upon it’s last pillar, business, and Intel is selling more Atoms and fewer hair-driers. Intel is adapting by moving to 14-22nm technology which lowers the cost of its products both to buy and to operate. M$ is adapting by advertising and litigating more…
In the end it seems to me that Intel will be able to thrive in any environment as Moore’s Law reduces the energy-cost of operating Intel’s chips but M$ is doomed to destruction or much lower prices. Both will have to compete on price/performance and M$ cannot beat the performance of FLOSS. The advent of thin client and web applications/cloud services means the lock-in that holds business close to M$ is loosening at the same time that FLOSS keeps improving on client and server.
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