IDC is one of the leading market research firms in the tech sector, and a new report they have published suggests that not only are desktop computers dying off… their inevitable demise may actually come sooner than previously expected. They are predicting a drop of nearly 5% in desktop users this year, which is a downward revision from their earlier projection of a 3.3 percent decline. That equates to roughly 293.1 million PC units being shipped this year.
Apple has already sold more than 74 million iPhones in the last quarter alone. That means the iPhone may outsell desktop computers all by itself next year. Now add in the number of Android and other devices flooding the mobile market and it becomes clear that user habits are rapidly evolving.
Adding insult to injury, the PC market is also losing money. IDC reports the PC market contracted by 0.8% last year to $201 billion in revenue, with an expectation of another 6.9% drop this year and by 2019, an overall market size of no more than $175 billion, (while Apple amassed more than 183 Billion alone in 2014 and appears to be on a growth trajectory thanks to the rapidly growing popularity of mobile computing over desktop alternatives.
Intel has long been a bellwether of the entire PC industry as the primary supplier of microprocessors and they are curtailing their own revenue outlook by almost a billion dollars in the first quarter of 2015m, based on soft demand from businesses for desktop computers and less inventory throughout their supply chain. Meanwhile, Google exceeded Intel’s capital expenditures by nearly 10% in 2014 after an extended era where Intel was the biggest spender. Intel R&D went into property, manufacturing, and chip-building infrastructure. Google spends its cash on the data centers, servers, and networking gear. The companies making desktops are now losing their dominance to the companies make mobile users and device agnostic consumers happy the most.