Forget grim headlines, opportunity abounds in PC market

Hybrids

The popularity of Lenovo’s Helix is consistent with feedback CRN received from others in the market who pointed to strong interest and demand in hybrids and ultra mobile devices.

IDC’s Chead told CRN, “There are going to be more options available in the market shortly. Vendors are getting ready to release them at the end of Q3 to coincide with Intel’s new release which has more energy consumption technology. That will help with the battery life of all these new convertibles.”

And that is a big issue for a lot of buyers says Synnex’s Issa.” Battery life is one thing that people really are talking about and the heat of the battery is another aspect of it as well. We see that as a big driver.”

With Intel’s 4th generation of processors delivering an average of 50 per cent more battery life (up to 9 hours) - the largest battery life increase in Intel’s history - it’s easier than ever to stay mobile says Intel’s Rajkumar.

“These hybrids are also tablets as you can detach the screen from the key board. These innovations will help to drive innovation in the PC market and the tablet market. “

For its part Dell’s Morris says, “We are also seeing the further emergence of converged devices such as Hybrids.” And he gives the example of Dell’s XPS 12 and upcoming XPS 11, in the workplace. “As organisations budgets are reducing and the end user are demanding a touch device, hybrids allow IT to provide the user with the power of a laptop computer and the convenience of a tablet in one device.”

The outcome is a win/win. User needs are met and the number devices IT has to deploy and manage is reduced.

“More than ever before, resellers have a great opportunity to sell tablets,” says Intel’s Rajkumar. “Intel-based tablets are available with full versions of Windows and are often backwards compatible with any Windows applications used in the organisation.”

With Intel-based Windows and Android tablet devices on the market, users have choice. And they are still getting the power, performance and security they need he says. “They also have the ability to have the same operating system across a number of devices, which presents a great opportunity to offer a total solution to SMBs. “

But users no longer need to make this choice if they don’t want to, because the wave of 2 in 1 devices hitting the market gives them the best of both worlds. “These devices combine the responsiveness and performance of a notebook with the mobility of a tablet. Often they operate as a traditional clamshell notebook and then flip, swivel or slide to transform into a tablet.”

Users get the advantage of strong security, ‘instant on’ and a form factor that fits their style and needs according to Rajkumar. 

“IT budgets are tight so the dollars to refresh the PC fleet and provide a tablet is not there,“ says Morris. “This means many IT professionals are looking for a platform that provides the customer with a tablet experience when they want to consume information but have the performance of a notebook when they need to be productive.“

Ultra market

The Ultra mobile market is also proving to be something of a boon, according to Ingram Micro. The company believes the Ultra book market is maturing, with a range of interesting and innovative multi-form-factor devices – like notebooks that convert to tablets, says the spokeswoman.

“This and the increasing number of touch-enabled notebooks will create more satisfying “multi-use” devices and we think will drive adoption. The introduction of Ultra books based on Intel’s Haswell chips together with new Ultra book features like WiDi (wireless display) will also drive increased adoption in the enterprise and SMB markets – as well as for power home users. “ she says.

Gartner told CRN that while the market will continue to see declines on desktops and notebooks small and emerging form factor for Ultra mobile is proving popular “It could be a full windows based machine but it could also be form factors that are evolving like the two in one. It could be convertibles, hybrids, or it could be chrome books. These are the innovations and there are a lot of excitement in this ultra mobile space.”

She says however that as it is coming from a small base the growth is not sufficient to lift the whole device market.

According to Tay there are a number of factors driving the ultra book market. “Number one is of course the traditional notebook replacement where and consumers and enterprises are considering going with ultra mobiles instead of traditional notebooks.

 She says the new form factors provide flexibility, especially the two in ones where you can use it as a tablet with touch as well as or you can dock it can use it more as a fully fledged traditional PC when you want it.

“These are the uses cases which are driving consumption.”

And she credits the importance of Intel Haswell . “Intel is targeting a price $399 US and this will create some excitement for the consumers especially for the end of the year.”

“Ultra books represent s 10 and 20 percent of our range ,” says Lenono’s Yap. “The Ultra book brand will grow. The whole thin and light thing is the way of the future. It already represents 20 per cent of the total business.”

The XP impetus

The other big driver highlighted by the industry leaders is the fact that Windows XP is coming to the end of its shelf life – the point at which Microsoft will stop supporting the product. “XP support will end in Q1 or Q2 next year that will drive some of the refresh decisions,” says Gartner’s Tay.

“There are still a significant number of customers sitting on XP.’ Says Yap.“ That’s just par for the course With the function of time the commercial customers will move across.”  He also noted that Haswell products will not support XP drivers “That will certainly force the hand of customers.”

“Historically in transition times like this we see an uptick in sales. It takes time to build applications from XP onto 7,” according to Yap.

“So this is a key juncture in the market.”

Dell’s Morris says, “more and more PC platforms become touch enabled its important consideration to factor when moving from XP. As touch technology increases in volume the cost declines and in some platforms becomes standard. So when considering your next desktop refresh it’s important to take these items into consideration.”

Ingram’s spokeswoman says, “Larger companies have always been slow to roll out new operating system platforms. It’s still early days. Resellers are starting to focus on educating their customers about the benefits of Windows 8.

“We are seeing interest in Windows 8, and with the Windows 8.1 update coming, and with support for Windows XP ending early in 2014, we expect this interest to continue to grow. The increasing availability and affordability of touch-enabled notebooks, and increasing familiarity with Windows 8 through use at home will also be a factor in driving growth in the enterprise.”

IDC does not believe that Windows 8 will ramp up very fast in the next 12 months in the corporate market. “They will take their time to test apps – most have just migrated to Win 7 so it will take at least two more years for everything to be tested. “

“The price of touch versus non touch still a significant issue. $50 per device is a lot across hundred machine. If the software is not touch enabled why would I want to migrate to Win8?”

An era of innovation

The numbers get all the headlines. So swift has been the decline in the desktop market that the numbers obfuscate a far more important story. We are living through an era of huge innovation in the PC category: from device form factors to how we interact with our devices.

According to V.R. Rajkumar, national reseller channel manager, Intel Australia and New Zealand, “In the next twelve months, we will see user demand for touch capabilities increase. Notebooks and all-in-one devices have already joined tablets in the touch category, but we expect touch to become the rule rather than the exception.”

 Touch is just one example of the perceptual computing capabilities that we’ll see more of on Intel platforms, according to Rajkumar. He lists the others as speech, close ranges gestures, finger level tracking and other technologies. “These are all designed to make personal computing more natural and intuitive.”

He says security also continues to be a major concern for businesses big and small. “Hardware-assisted-security – where security features are embedded in the hardware of Intel processors – is today enhancing systems so they run more securely. “

All this technology will be available on a wide variety of devices according to Rajkumar. ”Today we see desktop, notebook, Ultra book, all-in-ones and tablet PCs on the market, as well as a new wave of 2 in 1 devices. These devices combine the benefits of a laptop and a tablet and come in many different form factors.”

The Next Unit of Computing, or NUC, is another example of how the PC category is evolving, he says. “The NUC is a customizable engine that can be used in a wide variety of ways: for example, to drive digital signage, power multiple displays or simply offer an intelligent computing solution for small spaces. 

“With an Intel Core i5 vPro model available, it’s a great option for businesses.”

Rajkumar says the choice of devices on the market, and the ability to get the best of both worlds – the portability and interface of a tablet with the power and multitasking capabilities of a notebook – will be most appealing to consumers. 

Read on to find out why PC sales are set for comeback in 2014