Falling sales have crippled the PC industry over the last 6 quarters.
According to Gartner, PC sales fell by a painful 9.6% year over year in the first quarter of 2016. Only 64.8 million units were shipped worldwide. That’s the first time since 2007 that shipment volume fell below 65 million.
This has a big impact on Intel, which has been putting chipsets in PCs for several decades now.
Why Have PC Sales Fallen So Hard?
Gartner says that there are three big things that are happening here:
#1 – Local currencies have been losing significant value vs the US dollar. This makes computers more difficult to afford worldwide.
#2 – Low oil prices are driving economic contractions. Places like Russia and Latin America have been hurt pretty badly.
#3 – Smartphones are being adopted in place of PCs. Many people, especially in developing countries are choosing to skip PC ownership.
Here is the Unexpected Step Intel is Now Taking
So how has Intel responded?
In a shocking move, Intel chose to cut 12,000 jobs.
Ouch.
The company has decided to evolve. They will move away from PCs and focus more on data centers and the Internet of Things (IoT). They’ve become Intel’s primary revenue sources.
Why is the Internet of Things Becoming So Huge?
The IoT is the connection of everyday objects and appliances to the Internet. This connectivity lets them collect and exchange data. It also lets you control them remotely.
Set up a smart home security system and you can watch your feed from anywhere. Buy a smart lighting setup and you can control your lights from across the world. Get a smart oven and it will cook better than you can.
The role that the IoT plays in our lives is evolving all the time. This fascinating infographic shows just how fast it’s happening.
The applications for the IoT are also becoming more practical. With the expansion of the IoT comes a long list of amazing new innovations. But it also brings new kinds of security threats.
As the Internet of Things expands there will be many changes in the way we live our daily lives.
There is plenty of opportunity out there for companies who are ready to innovate.
Is Your Company Developing Innovative High Tech Products?
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If you’re looking for a manufacturing partner, request a quote from us. Our team of experts will be happy to answer any questions you have.