Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
It is happening now folks. History is in the making and it isn't a history that Microsoft is likely to be happy about. According to an in-depth analysis by Goldman Sachs, Microsoft's Windows operating system has now fallen behind iOS and Android. To sum it up, the problem isn't that Microsoft is losing the operating system war on dekstop PCs. They are still the absolute dominant ruler of that realm. The problem is that desktop PCs are losing the device war. Smartphones and tablets have completely unseated the desktop PC as the important and "go-to" consumer device of choice for purchases. Here's a quote with a few more tidbits,
Why? Because, "The compute landscape has undergone a dramatic transformation over the last decade with consumers responsible for the massive market realignment. While PCs were the primary Internet connected device in 2000 (139mn shipped that year), today they represent just 29% of all Internet connected devices (1.2bn devices to ship in 2012), while smartphones and tablets comprise 66% of the total. Further, although Microsoft was the leading OS provider for compute devices in 2000 at 97% share, today the consumer compute market (1.07bn devices) is led by Android at 42% share, followed by Apple at 24%, Microsoft at 20% and other vendors at 14%."
Goldman Sachs' analysis isn't in a vacuum. Mary Meeker, once a superstar Wall Street analyst, and now a well-respected venture capitalist, recently presented a Kleiner Perkins Caufield & Byers report titled Internet Trends Year-End Update. The report found that tablets and smartphones were out-selling PCs in 2010's 4th quarter and have since left them in the dust. By 2013's 2nd quarter, Meeker predicts, the Apple- and Android-dominated smartphone and tablets installed base will be greater than the Windows PC installed base. Today, by Meeker's numbers, Apple iOS and Google Android have 45% of the market to Windows' 35% .
So it looks like the coin has turned. There are now more mobile devices being sold than PCs. Could this be the beginning of the end for the traditional PC? Obviously it will take years (or decades) to completely phase out the PC, especially from businesses, but this is definitely a trend that cannot be ignored. Share your thoughts in the forums.