Op-Ed: Tablets really are the new PCs; nobody needs to buy them...

[A Guy]

Op-Ed: Tablets really are the new PCs; nobody needs to buy them any more

The tablet market is tapped out. We saw signs of this when Apple reported that its iPad sales were down year-on-year and we're seeing a similar message from retailers. Re/code's Walt Mossberg recently talked to Best Buy CEO Hubert Joly, who said that tablet sales had "crashed."

Global tablet sales are still rising—though less quickly than they once were—but in developed markets the tablet boom may be over. As Apple CFO Luca Maestri said in the company's earnings call, iPad sales were still growing in developing markets. The slowdown is all in the developed world. Samsung also reports that profits are down after tablet demand fell.

Moreover, Joly reported that PC sales—which the tablet was supposed to kill—have picked up. He attributed that resurgence partially to the end of support of Windows XP.

The computer industry has to face an uncomfortable truth. Tablets aren't the next smartphone. They're the next PC.

Source

A Guy

 

[Layback Bear]

Seem like toy time is over in most markets.

I was talking to my two desktop just the other day.
I was wondering if they were worried about these new toy coming out on the market.
Both my PC were not worried.

In the words of my Primo Desktop.

I'm a Primo and I not worried unless those toys can do what I can do and fit in a pocket.
Primo continued; I use to date a Laptop and she was hot when things got tuff. The Lady Laptop would always come back to me and ask for help. Of course I always helped. Who could turn down a Hot Laptop.

What you don't talk to your PC.

 

[lehnerus2000]

@Layback Bear
Nice.

 

[jimbo45]

Hi there

Agin and Again the same old story -- it's almost amazing how people STILL don't seem to fathom it - that once a market matures growth ALWAYS slows down. So many businesses latch on to a new piece of technology which sees sometimes an annual sales growth of around 20% - 60% initiallyand then get surprised when sales drops back to a trickle of the former growth.

I've been to so many presentations where sales projections are shown -- and when I ask -- what are your plans for when the market matures and sales flatten out -- usually to be met with a stony silence as they obviously haven't planned that far ahead..

It's the same with Smart phones, PC's or any other piece of technology aimed at mass consumption whether by businesses or individuals.

The only way to survive this hiccup is to go considerably UP market where people are not so conscious on price but on things like build quality and style. You make far less units but sales will continue indefinitely --for example no signs of sales of Ferrari's slowing down yet. !!

The convertible type of tablets (SP3 and Lenovo) will still sell for a while but again businesses have to have a strategy for MATURE MARKETS and LOWER VOLUMES.

It really doesn't matter what the product is- the same rules apply. Even applies to food too - you can only eat so much of a particular product !!!!

Perhaps the best way is not to get so greedy in the first place and produce not so many units and aim higher up the food chain.

The developed West is never going to compete with emerging countries on being able to manufacture cheap mass produced goods - we need to appeal to a different quality market which doesn't rely on 100,000's of people working for low wages in poorly regulated and often dangerous factories in some of these countries.

Cheers
jimbo

 

[lehnerus2000]

The developed West is never going to compete with emerging countries on being able to manufacture cheap mass produced goods - we need to appeal to a different quality market which doesn't rely on 100,000's of people working for low wages in poorly regulated and often dangerous factories in some of these countries.

Not according to politicians of a certain persuasion.

Their solution is to eliminate:

• The minimum wage
• Corporate taxes

 

[Layback Bear]

I don't think I like the the Ferrari sales plan.
Their would only be a few computer owners and they would cost more than a Ferrari.

From post #4

for example no signs of sales of Ferrari's slowing down yet. !!

http://www.motorauthority.com/news/1090430_ferrari-achieves-record-profit-in-2013-with-fewer-sales

While the general trend in the industry, even among luxury makes, appears to be to increase sales with little regard to exclusivity or whether a vehicle fits a brand, Ferrari is going against the tide and limiting the number of cars it sells each year. After reaching ‘Peak Ferrari’ in 2012 with a record 7,318 sales, the Italian brand decided to limit sales to 7,000 units per year going forward in order to boost exclusivity and in the process help protect margins and residual values for customers.


Ferrari has now revealed that it sold 6,922 cars in 2013, which was down 5.4 percent on 2012’s figure. Despite the decrease in sales, revenues were up 5 percent on the previous year at 2.3 billion euros ($3.16 billion) and net profit was up 5.4 percent at 246 million euros ($338.5 million). The company also ended 2013 with 1.36 billion euros ($1.87 billion) in the bank, its highest net cash position ever.

 

[Layback Bear]

I don't understand things I guess.

When PC sales dropped of the PC was going the way of the dinosaur but quicker.
When the Tablet sales drop off it a market adjustment.

 

[Iforgot]

in order to boost exclusivity and in the process help protect margins and residual values for customers.

Honda dumped a ship load of New Honda's, destined for the USA, in the sea, rather than put them on the USA market that at the time was in a car slump.
To keep the value of there car up rather than have a surplus, then drop the price.

That IIRC was somewhere in the 80's


It scares me of some of the things I remember, from snippet's in newspapers.

 

[jimbo45]

Hi there

Sometimes it seems like that -- and I agree with you - Basic Tablets are essentially just TOYS - a decent smart phone is probably of more use than a tablet - especially the smaller (say 7 inch screen) ones.

However there are very valid reasons why decent mobile devices are not going away (and I emphasize DECENT).

1) If you do a lot (or perhaps even a little) travelling which involves most of it using public transport - trains, plains even local buses then weight and size becomes all importsnt - especially on planes where there's loads of extra security and not only do you get charged a lot of money for baggage stored in the hold - you invariably wait HOURS at the other end - even if your costly item is not lost, broken or stolen.

Much as I love a large alienware laptop I'd never dream of carrying that enormous hunk of computing around.

2) Working at different client sites and giving presentations --it's certainly much easier to use a portable device with few cables (if any) which can wirelessly project on to the large screen in the conference / meeting room. Being able to use touch on the small screen is quite handy at the demos for flipping pages, re-sizing etc etc.

3) I'm of course referring to "convertibles" rather than your basic toy town tablet. Yes these may be expensive but with a docking station they can provide all the facilities of a basic laptop - and usually have a much better screen resolution than the 738 X 1366 usually available on most laptops --on a large screen you really DO notice the improvement.

4) Of course for some people the fixed desktop is never going away -- however there's no way I could do any of my assignments without a suitable mobile device - and although expensive the Ms SP3 suits me just fine -- it doesn't suit others of course.

I think for some laptop (not desktop) users today the idea of a convertible might well become appealing to them in the future as prices come down and there's more choices around.

There probably will be a little bounce back next year as the economic recovery gathers a bit more momentum however that will only be temporary.

People should just use whatever is most suitable for them - we all work in different ways.

Cheers
jimbo