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Amid PC sale slide, hope renews

Microsoft's plan to reignite PC sector may be taking hold
Last Updated 09 October 2015, 18:48 IST

Shipments of personal computers fell nearly 11 per cent last quarter, to the shock of almost no one. Sales have been declining for so long — 14 consecutive quarters — that it is becoming harder to remember a time when PCs ruled the tech world.

The prolonged slump helps explain why so many of the leading PC makers are scrambling to continue remaking themselves in a world dominated by mobile devices operated with touch, rather than mouse clicks. Hewlett-Packard is splitting into two entities. Lenovo has branched out into smartphones by acquiring Motorola Mobility. And, in the latest sign of the changes roiling the business, Dell is in advanced talks to acquire EMC, the big data storage company. Such a deal could accelerate a long-running effort by Dell to diversify its business.

Adding to that stew of uncertainty is Microsoft. In recent years, it has taken the once-unthinkable step of competing with its hardware partners, like Dell and HP, by making its own computers, starting with its Surface tablet. This week, Microsoft dived even further into the business with a laptop device, the Surface Book.

Yet despite all that movement, something curious has emerged in recent months: optimism.

The stated reason that Microsoft got into the PC hardware business three years ago, with the original Surface, was not to put PC companies out of business. The company said the goal was to better illustrate the capabilities of its software, providing devices that would inspire PC makers to be more innovative.

Analysts and industry executives say the strategy may be starting to work. Dell announced that several new machines that run Windows 10, a new Microsoft operating system.

It remains to be seen whether these efforts will result in more sales. Microsoft has seen terrific growth in its Surface business, which has jumped to $3.6 billion in annual sales from nothing three years ago. But most other big PC makers have not been able to get customers to spend on PCs as they once did. PC owners are holding on to their machines longer, making do with systems that are good enough for their needs. At the same time, they are relying on mobile devices for more of their computing tasks.


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(Published 09 October 2015, 18:48 IST)

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