The PC market is in a really bad shape. It is disastrously oversaturated, and its leaders haven't innovated in ages. At this point, it’s either change and adapt, or leave the market, according to Gartner. The market analysts believe companies should make this decision by 2020. "The PC business model as we have traditionally known it is broken.
The top five mobile PC vendors have gained 11 per cent market share over the past five years — from 65 per cent in 2011 to 76 per cent in the first half of 2016; but this has come at the expense of profitable revenue," said Tracy Tsai, research vice president at Gartner.
"While this does not mean that the PC market is finished, the installed base of PCs will continue to decline over the next five years, with a continuing erosion of PC vendors' revenue and profit." Just competing on price will no longer work, Tsai says, as PC users are extending PC lifetimes until EOL, and apps are moving into the cloud.
Spec upgrades simply don’t cut it anymore.
Gartner offered four alternatives: Same old same old (going with high volumes to ‘keep the PC business running’), Same products with a new business model (transforming PC into a service, rather than a product), New offering with a new business model (new products in terms of sensing, speech, emotion and touch), or New products and new business models (for example, personal assistant robots).
"Business leaders of PC vendors need to think about business outcomes based on the four alternatives discussed here," said Ms Tsai. "Some vendors may need a whole new business and product strategy to turn their situation around. PC vendors need to identify their core competencies, evaluate their internal resources, and adopt one or more alternative business and product innovation models to stay in or leave the PC business."
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