LG to reportedly stop manufacturing traditional PCs, is PC market dying ?

game-overBuoyed by phenomenal growth in the wireless laptops and more trending smartphones/tablets, South Korean electronics giant LG is said to be exiting from the traditional PC market once and for all, in a bid to allocate its resources to popular connected and portable devices.

Given its worsening margins and sales in the segment, the company is planning stop its PC production. An announcement of which is expected could come at next week’s Consumer Electronics Show (CES) in Las Vegas, where LG will have one of the first press conferences of the whole event, said reports.

Another report published in Guardian says that the company has seen its PC shipment getting almost halved over the past three years. Falling from 1.65m in 2010, to 1.48m in 2011, to 0.94m in 2012, the company has only managed to sell around 0.91m PC units last year. Moreover, the five largest manufacturers – HP, Lenovo, Dell, Acer and Asus – who collectively have over 60% of the total Windows PC market have managed to ship between 4m and 13m PCs per quarter, and, leaving slim margins for other companies.

Rival company Samsung has also begun shifting away from conventional PCs. Earlier in 2013, the company even faced a possible rumor in media that it is withdrawing from the desktop PC market,which was then later denied by the company.

No doubt, this will put extra pressure on its PC business and one thing is quite clear that PCs indeed are getting outdated slowly as new and more compact technologies are taking their place. Following image shows the number of units shipped worldwide by Segment (in millions) -

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Market research firm Gartner earlier claimed in one its studies that shipments of traditional PCs i.e. desk-based and notebooks is expected to reach 303 Mn in 2013 units with a decline of 11.2 % in comparison to 2012. Wheres other modern technologies including mobile phones and tablets will see a growth of 3.7% and 53.4% in 2013, compared to that of 2012.

Another report by market research firm Canalys shows that tablet technology is slowly dominating the world and in 2014, the number of tablets sold will surpass the number of computers sold.

Given the PC market trends and their manufacturing companies’ shifting focus to other handy connected devices, one things that makes perfect sense is that – PC market is dying. The only question is how fast.

<image credit: businessnewsdaily.com>

The author can be reached at devesh@wirefootindia.com

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