It’s been a one-two punch for the iconic PC companies: Dell shares crashed after it forecast second-quarter estimates that fell short of Wall Street estimates, and even though HP reported stronger reveues and profits than anticipated, it is announcing layoffs of 27,000 people.
What’s even more striking is that both of these companies have started defining themselves as something other than a PC company. Dell has said that it will emphasize its enterprise services business and HP is getting into the enterprise software business with its Autonomy acquisition.
This is probably mostly why HP’s stock rose on the layoffs announcement, more than its quarterly results: it is signaling that it is moving away from the PC.
It’s not just that the PC era is over. It’s that no one thinks the PC era is not over.
The answer, of course, is in the chart above, which is our estimate of global internet device sales.
Steve Jobs was mocked at first for saying that the smartphone and the tablet heralded a “post-PC era”. But it is happening, and it is happening faster than any of us thought.
This has a broad range of consequences:
- Apple’s opportunity is just massive. It has a positive developer network effect in smartphones. It is the only company that can make tablets people want (with Amazon, see below).
- Microsoft is in a tough spot. We’re not saying it’s toast, yet, because we believe there may be room for a strong number 3 in mobile, and Windows 8 is embracing the right strategy of focusing on tablets and providing a great touch experience, but it will still require heroic effort just to stay relevant.
- Amazon’s Kindle ecosystem is going to pay off hugely. Right now, Amazon is the only winner in the tablet game alongside Apple. If Amazon grabs a significant slice of the future of computing and uses it to sell commerce, media, services and adds, that is an enormous business. (See our Kindle economics primer here.)
- Google’s widely ridiculed Motorola buy might actually turn out to be a smart bet. Tablets are such a hugely important opportunity, and Android is so far behind, that it just might be worth it to strap a dead elephant to its back, alienate its partners, and so on, just to be able to play there.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- 3G calling, no registration, and totally free
- AOL's Plan To Steal TV Ad Dollars Is Totally Working
- The Top Endorsement Earners In Each Sport
- Groupon launches Breadcrumb iPad app, vows to not be a typical POS
- HP Mini 311 Nvidia ION Netbook Hackintosh'ed
- Flash Sale Sites Have A Social Media Problem
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- Digital + Traditional = Unified Marketing
- May 2013 (47)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (92)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)