OEMs Respond To The Slump In Sales Of PCs By Slashing Orders For Parts

The pain of Wintel is moving down to the roots of the tree. Manufacturers are delaying orders for parts 60 days in a wait-and-see mode. They will not be paying M$ nearly as much for months. Think deferred revenue will cover the shortfall indefinitely? Think again. This “slump” is not a slump but a falling off a cliff. Not only is Wintel not selling, but meanwhile world+dog is finding alternatives to Wintel computing solutions. Think tablets, smartphones, thin clients, ARMed thingies, */Linux thingies. Price/performance matters and devices without the weight, burden, price, cost of a licence to M$ and malware are winning in the market. Isn’t competition grand?
“Notebook vendors will wait till July before ramping up their orders in preparation for the back-to-school demand, a delay of about 60 days as compared to the usual practice in previous years, probably because the vendors are conservative about market demand or are waiting for sufficient supply of touch panels”
see Notebook vendors to defer shipments for 60 days, say Taiwan makers

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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13 Responses to OEMs Respond To The Slump In Sales Of PCs By Slashing Orders For Parts

  1. ram says:

    “There is no competition on price/performance or GNU/Linux would win everywhere. It proves you can sell refrigerators to Eskimos.”

    Well, Balmer is well known for saying: “With the right marketing you can get people to wipe their asses with sandpaper!”

    Apparently he was right.

  2. oiaohm says:

    bw –All I can say is that you do not seem to have any useful insight into how corporations use their Windows systems–

    Robert Pogson statement that you have just attacked here is kind backed up.

    Robert Pogson
    –They could run GNU/Linux clients and keep .NET on the servers, yet corporations run that other OS on client–

    This is backed up by website survey data. Since running mono asp.net are detectable to sites running Microsoft asp.net.

    http://www.turnkeylinux.org/asp-net-apache
    Horrible but reality large percentage of Asp.net sites these says run on Apache with mono on Linux. You find lot of the major asp.net frameworks are tested running that way.

    bw more and more companies are going to internal website based.

    .Net save to Micorsoft. No it not. Its being reduced to background noise nothing more.

  3. bw says:

    “They could run GNU/Linux clients and keep .NET on the servers, yet corporations run that other OS on clients”

    All I can say is that you do not seem to have any useful insight into how corporations use their Windows systems. Perhaps all the tales you tell of rural schools and eager students is true, but none of that experience applies to these corporations. It does account for your pre-occupation with CALS and such in a service/consumer architecture era.

    Even Eskimos are likely to want to have a cold beer inside their heated cabins around Super Bowl time. I can’t see them running outside to dig around in a snow bank every time they need a refill. I bet they have refrigerators just like us civilized guys.

  4. bw wrote, ” .NET is why corporations are “stuck” on Windows today”.

    Nope. They could run GNU/Linux clients and keep .NET on the servers, yet corporations run that other OS on clients. For each server there may be a few or a few thousand clients. .NET is not the reason businesses are largely locked-in to M$. Lots of organizations run a lot of stuff on GNU/Linux servers. The reason M$ shows huge revenues from servers is not .NET but the high prices M$ charges. e.g. basic server licence is ~$1K +$40 per client. “Enterprise server” is ~$4K. Businesses ask M$’s salesmen for advice and throw money at them. GPL costs ~$0 and gives them great control over their hardware. There is no competition on price/performance or GNU/Linux would win everywhere. It proves you can sell refrigerators to Eskimos.

  5. oiaohm says:

    bw even that .net has been pushed for over a decade.

    But something interesting is happening.

    http://w3techs.com/technologies/history_overview/programming_language

    .net is declining same with java in web.

    Even with all the might of Microsoft there are other forces at play. .net peaked about 5 years ago.

    The slow rot and decline has been creeping up on Microsoft for a long time. Just people like you bw have not been looking for it.

  6. bw says:

    “Silly”

    Wasn’t the topic about what sort of “lock-in” exists in commercial settings that tends to bind those organization to Windows? If you are so eager to disparage any information that you get, you are never going to learn anything and you are going to be forever stuck in the same rut as you find yourself today in regard to any proliferation of Linux in the workplace.

    Microsoft has been pushing .NET for well over a decade now and it has taken hold world-wide. There are alternatives, sure, but .NET is why corporations are “stuck” on Windows today or else, said another way, demand Windows on their employee workstations in order to preserve their substantial investments made in their proprietary infrastructure over the last ten years.

    If you want to somehow dismiss that as silly, then you are only hurting yourself. BTW HTML, PHP, Java, and JavaScript are all available for Windows, too, and are mostly used with Windows today.

  7. bw wrote, “you would have noticed .NET is the important technology these days.”

    Silly. HTML, Java, Javascript, PHP, etc. are all widely used. The vast majority of web-facing web-servers are not running M$’s platform. Applications developed in-house may or may not use .NET. I still remember the first time I encountered .NET. I found it on each and every one of the PCs in my school and not a single application depended on it… When I made images to back up XP, I deleted it and saved nearly 1gB per machine, endless bandwidth for updates, potential vulnerabilities etc.

  8. George Hostler wrote, “The lighter weight portable devices work just fine. I’m not jumping through any hoops just for new hardware. Cash resources are limited all over.”

    I noticed this years ago when I worked in schools. There it was not just about saving money, but rolling out new software and databases more quickly, with less paperwork/meetings/delays and having more seats in the building. If PCs cost half as much it may well be better to have twice as many rather than just spending less. That’s why many more ARMed */Linux small cheap computers sold last year than Wintel PCs. The little woman and I are examples. We don’t really need portability. We just go from room to room and there’s a PC there… The PCs are getting older and there’s no loss of performance with GNU/Linux.

  9. George Hostler says:

    This article dated 29 May 2013 has an interesting statement:

    More woes for PC sales in 2013

    MORE bad news for struggling makers of personal computers: a new forecast suggests sales will fall another 7.8 per cent in 2013 as buyers delay PC purchases or choose an alternative device.

    The research firm IDC said the drop is likely to be steeper than its previous prediction, and come on the heels of a four per cent decline in 2012.

    The updated forecast reflects a huge drop in volume in the first quarter of 2013 and consumer reaction to new PCs using Windows 8, including more thin, convertible, touch, and slate models.

    “Many users are realising that everyday computing, such as accessing the Web, connecting to social media, sending emails, as well as using a variety of apps, doesn’t require a lot of computing power or local storage,” said IDC analyst Loren Loverde.

    People aren’t jumping on the bandwagon for new hardware, just so they can try out a new OS. The lighter weight portable devices work just fine. I’m not jumping through any hoops just for new hardware. Cash resources are limited all over.

    I’m running GNU/Linux on all my hardware. My netbooks, notebooks and desktop, although 5 to almost a decade old, still have a lease on life through Linux and FOSS.

  10. bw says:

    ” I met an accountant recently and he said the only lock-in he sees left are macros in Excel spreadsheets”

    That is the danger of having such a small and non-representative sample to base your conclusions upon. If you had any experience in real business, namely the type of company that spends a few million bucks a year to update their Windows environment, you would have noticed .NET is the important technology these days. I am fairly sure that even LibreOffice can handle Excel spreadsheets. If not it is something that you would not want to have around.

  11. oiaohm wrote, “Linux would not have to defeat Microsoft. Microsoft would defeat themselves fairly well.”

    I disagree. M$ has really annoyed customers many times over its tenure on the desktop: BSODs, malware, Vista, and now “8”. M$ was always able to recover but this time there are alternatives being adopted by OEMs willing to fill the vacuum. Rather than just a few dandelions, M$’s field now is a carpet of yellow. This will cut into M$’s yield no matter what they do. We see that with mobile. “Phoney 7” just could not recover from its broken release because the world is now full of iThingies and Android/Linux devices. “8” is not accepted on the desktop and is going nowhere on ARM despites M$ still having shelf-space in retail. The retailers will simply start shipping what the OEMs produce and M$ will be out in the cold. Their release-cycle of years cannot compete with FLOSS releasing new stuff every few months. Their price cannot be hidden from consumers in devices that cost twice as much as devices bearing competing OS.

    M$ has one last bastion, business, which is still hooked on M$’s office suite but even that is eroding with Google’s cloud and LibreOffice. I met an accountant recently and he said the only lock-in he sees left are macros in Excel spreadsheets. That really only affects large businesses who hire programmers and more of the large businesses are using web applications to keep the data on the servers instead of on the client machines… There’s no upside for M$. They are going to shrink seriously or have to start working for a living.

  12. Agent_Smith says:

    Yup, the catfish effect.
    Without the catfish, there’s no competition.
    Without competition, there’s no novelties and so, the market stagnates.
    MS always only competed with itself.
    Now, we see the results.

  13. oiaohm says:

    A few people always laughed when I said. Linux would not have to defeat Microsoft. Microsoft would defeat themselves fairly well.

    We are starting to see the nice evil effects of market saturation.

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