Former IBM hardware division Lenovo has a lot to be happy about lately. It seems this Chinese-based company is the only manufacturer of traditional desktop and laptop computers that is bucking a global downward trend. How bad is this downward trend? We’re talking 7 consecutive quarters of sales decline. The past 7 quarters of global sales of laptops and desktops have been on a downward slide.
One is almost tempted to think that this is due to soft of global economy or some consequence of that global economic slowdown. The truth is, the global economy is showing some signs of recovery. This decline in traditional notebook and desktop sales could not be attributed to an economic softness. The answer is actually quite obvious. Thanks to the launch of the Apple iPad, the tablet industry has exploded. As a result, more and more people are drawn to the increased mobility that tablet offers. Moreover, tablets tend to run cheaper since most of their processing power could be off loaded to the cloud. It’s quite obvious that the tablet space is beginning to become a race to the bottom. Putting this 2 factor together, it’s not a surprising to see this 7 quarter decline.
Well-known names like Hp, Acer, Asus, and even Apple was shown recent declines in traditional computer sales. The biggest looser among this trend? Here’s a hint. It’s not a hardware manufacturer. In fact, the biggest loser is none other than the Microsoft. Since Microsoft is the traditional top dog in traditional computing, you can well imagine the impact continued decline in traditional computing devices will have on Microsoft’s dominance of the OS market. But as just the old saying goes, for every crisis, there is an opportunity. The opportunity here, really, is in the tablet space. Expect laptops to not go out with a whimper. Expect better pricing, better capabilities in the future. In a very real sense, this downward decline might just be exactly what the laptop and portable computing market needs in terms of a reality check.