Thursday, March 12, 2015

Intel Profit Warning: What Is Going On? More People Going Mobile And Less PC

It's been confirmed over the last year that tablet sales have been down.  So, does that mean PC sales are up?  Well, Mac sales are but the larger PC market is still stagnating.  Hence, Intel's warning.  So, what is exactly going on here?  What are the billions of people doing their computing on? 

For the most part, people are holding on to their computers and tablets longer.  The upgrade cycle has become longer largely because today's computers and tablets are so powerful.  While Microsoft struggles to stimulate demand for next version of Windows, Windows 10, it certainly has not help with the computer buying cycle.

When Intel warned that its outlook was not as rosy as stated, an interesting thing happened.  Microsoft and other tech companies associated with the PC market lost value while other tech giants like Apple and Google rose.  It spoke volumes about where the future is headed when Microsoft manages to stem the the PC market from bleeding for a peroid with Windows 10.  If anything, Micrisoft could be look to continue its Windows brand beyond PC and double its effort in mobile and tablet markets where it is barely a blip.

Furthermore, it does not help with Lenovo, Intel and Microsoft partners, install spyware in their laptops. 

As for Intel, it's multi-year plan to move beyond the PC and reinvent itself into a provider of mobile chips and services underscore again that more users while connected are doing so wireless on non-PC devices.

With over one billion Android devices sold and a couple of hundreds iOS devices sold in 2014, a vast major of them are not running Intel chips and Windows.  The question now is quickly and effectively can Intel, Microsoft, and the other PC guys pivot and become relevant again.

As consumers and mobile warriors, we want more competition and wish them luck.

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