The Death of an Industry Giant

Few people would take on the task of writing their own obituary. Others, like Mark Twain, made a joke when his obituary was mistakenly printed when he was still quite alive. “The reports of my death are greatly exaggerated,” was his quip. 

While not a human death, the death of an invention that revolutionized the world may be a bit premature but imminent. And, its demise is being predicted by one of its innovators. Unlike Mark Twain, Dell is writing the obituary for the PC, even though the company was at the heart and start of the industry. 

A Forbes article, “Dell Outlines The Death Of The PC,” relates how Dell, in a proxy statement to the Securities and Exchange Commission, that the PC money-train has “hit the buffers.” The article refers to a “post-PC” world, and “post-PC devices” like tablets and Smartphones, that are making the big, bulky desktop PCs and even laptops obsolete. Companies and technology retailers, whose business relied on brisk PC sales and regular innovations in software and hardware to bring in revenue, need a “Plan B.” The day of the PC is fading away. 

Dell listed the cause of the PC’s demise. First of all, sales are down. And it’s not just the need for faster processors wider screens or smaller, lightweight laptops. The days when an upgrade gave sales a boost are gone. And, it’s doubtful they will ever return.

Prices are dropping. Consumers can buy a fast, lightweight, wireless PC for under $300. Brand loyalty is also fading, except for the choice between a PC vs. Mac.  Both are now falling into the same category, squeezed out in some cases by internal competition between a brand’s own PCs and digital devices and Smartphones.

Microsoft is no longer the only game in town or the innovator it once was. There are many alternative operating systems waiting to take its place. Businesses are also adopting “bring your own device” policies, leaning less on owning PCs for use than putting the cost on individuals to use (and pay for) their own.

While Dell made its mark in the PC retail world by allowing customers to build their custom PCs, it won’t survive if it intends to continue that business model. Other PC manufacturers, and those that supply software, components and operating systems, are in the same boat. They are going to have to innovate to survive. A significant drop in PC sales means distribution and delivery companies like FedEx and UPS will suffer as well. Finally, retailers from tech giants like Best Buy, office supply companies like Staples or Office Max, and just about any other large retailer like Target and Wal-Mart that sell PCs are going to lose a segment of their retail business.

Tech companies are not asleep at the wheel, with many innovating to stay ahead of the PCs inevitable demise. Apple can take the blame (credit) for eroding the PC market with its iPhone and iPad technology. Ahead of the curve, they have the most to gain from the PC’s downturn. For Dell and other tech companies, their future may depend on how fast they can change direction.

Photo Source: Morguefile.com