Archive for August, 2013

Why Big Companies quite the Personal Computer Business

August 18, 2013

Why Big Companies quite the Personal Computer Business.

After all these years, only a few big companies remain in the business of selling products for the Personal Computer market. Yest there are many small companies,. In fact, even more small firms are starting up. Why is this?  Here are three reasons.

Customers want personal computer equipment to be easy to use and very low cost.  Some large companies have a hard time doing that. Personal computer users are demanding. Even more ndemaining that business users if you factor in the price range. Here is what I mean. A business user will pay $1500 for a printer and expect telephone support. A home user will pay a much lower price for a bare printer and expect the same level of support. In effect, the home users are demanding more.

Second, the Personal Computer market is changing rapidly. It is hard to sell old designs. A simple makeover will not do. Most home computes run some version of Microsoft Windows., For the past few years Microsoft has been urging manufacturers to upgrade to more sophisticated computer chips. The newest version of the operating system does not work on older computer chips. This means the companies that make computer components chips now have to offer new designs. Any radical design change is  bad news for big companies that have overstocks of older materials.

Third reason. Thank about this. More people are now buying alternatives to the traditional personal computer. Not just laptops, but tablets, phones and other devices that  have as much computing power as a personal computer bought just a few years ago. This new wave of personal computational devices are now actually cheaper that what home computers used to be. In part, this is because the new tablets, smartphones and personal fitness gadgets are made in the pacific rim area.  This trend can only grow.

Don’t be surprised if some big American personal computers companies quit.

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