How the ‘value trap’ squeezes Windows PC makers’ revenues and profits

Analysis of the revenues and profits for the ‘big five’ PC manufacturers – HP, Lenovo, Dell, Asus and Acer – which make more than 60% of the Windows PC – shows a multi-year squeeze on prices and profits. What next?The news that LG is considering quitting the traditional Windows PC business isn’t surprising. LG has always been a bit player in the PC market, with shipments of at best a few million PCs per year – in a market where the largest companies would expect to shift 10 times more.As one unnamed LG employee told the Korean Times, exiting the PC business makes sense: “it doesn’t make sense to put more resources into the money-losing business.”It’s not just LG that’s hurting. The PC business is in a slump which has seen year-on-year shipments (and so sales) of Windows PCs fall for five (imminently, six) quarters in a row, after seven quarters where they barely grew by more than 2%.
www.theguardian.com/technology/2014/jan/09/pc-value-trap-windows-chrome-hp-dell-lenovo-asus-acer

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