Is 2013 the Beginning of the End? (for PC mfrs)
The potential Dell buyout has become big news over the past week or so. But this is only the latest in a string of negative headlines for major PC manufacturers. Here's a brief year in review for the rest the pack:
HP: Where to start with this one? HP's stock tumbled over 40% in the past 12 months, driven by disappointing earnings and no sign of a turnaround in the near future.
Acer: Another PC company with a really rough 2012. Acer got hammered almost as badly as HP, seeing its stock fall almost 40%.
Lenovo: Not a bad year at all, as sales were actually up from 2011 and the stock soared. But even though Lenovo overtook HP as the world's largest PC manufacturer, the company still said its main focus in 2013 is expanding further into the smartphone market to counter slowing PC sales.
While the PC certainly isn't becoming extinct anytime soon, the days of computer manufacturers as titans of the consumer electronics industry seem to be numbered. Just a few years ago, most people would've found the idea of Dell as a potential buyout target pretty laughable. But the focus of the industry is changing. So was 2012 the sign of the apocalypse for companies like Dell, HP, etc? Or is everyone just overreacting?
I don't think it is a sign of the apocalypse. It's simply just a matter of the hardware being more of a commodity. Think about it, how different is a Dell from an HP? The companies can't differentiate themselves to the normal public (I'm sure computer geniuses can tell, but they are a niche in the market). It's hard to be successful selling the exact same thing as other companies.
PCs won't go away. The companies that manufacture them will just have to find a way to differentiate their product or become low-margin, high volume.
Lenovo is going to be a winner in my opinion. read up on their 10ks and earnings calls. they're aware the pc industry is changing and they're changing with it. further more, they're growing their target markets accordingly with gdp estimates. "europes going to have a shitty 2013? okay, we'll focus more emerging markets with potential". they've tackled much of japan and china, 2 of the 3 largest pc markets in the world, and now they are just booking it with their other editions. also look out for their smart tv which has recently released, and their 22 millimeter-wide desktop pc.
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