PC Industry Is Now On a Two-Year Downslide

According to analyst firm Gartner, PC shipments have declined for eight consecutive quarters -- "the longest duration of decline in the history of the PC industry." The company found that worldwide PC shipments totaled 68.9 million units in the third quart of 2016, a 5.7 percent decline from the third quarter of 2015. The Verge reports: The firm cites poor back-to-school sales and lowered demand in emerging markets. But the larger issue, as it has been for quite some time, is more existential than that. "The PC is not a high priority device for the majority of consumers, so they do not feel the need to upgrade their PCs as often as they used to," writes Gartner analyst Mikako Kitagawa. "Some may never decide to upgrade to a PC again." The threat, of course, comes from smartphones, which have more aggressive upgrade cycles than PCs and have over time grown powerful enough to compete with desktop and laptop computers at performing less intensive tasks. Tablets too have become more capable, with Apple pushing its iPad Pro line as a viable laptop replacement. PC makers are feeling the pressure. HP, Dell, and Asus each had low single-digit growth, but Acer, Apple, and Lenovo all experienced declines, with Apple and Lenovo each suffering double-digit drops. Meanwhile, the rest of the PC market, which collectively ships more units per quarter than any of the big-name brands, is down more than 16 percent. Some good news is that 2-in-1 devices have experienced year-over-year growth. Kitigawa also notes: "While our PC shipment report does not include Chromebooks, our early indicator shows that Chromebooks exceeded PC shipment growth."

Read more of this story at Slashdot.