Things Go From Bad to Worse for the PC Market

The global PC market hasn't exactly been a bed of roses over the past several years.

And even as it comes off a historically bad year, PC players like Microsoft  (NASDAQ: MSFT  ) and Hewlett-Packard (NYSE: HPQ  ) are likely to be forced to bear another challenging PC market once again in 2014.

From bad to worse
Rewinding to this time last year, research firm IDC broke the unfortunate news that the global PC market had contracted 3.7% in 2012. Equally alarming, the research company also envisioned the personal computer market to decline by 1.3% in 2013, with envisioned being the operative word.

Fast-forward to today, and the same research firm now notes that the PC market shrank by 9.8% last year, fell another 6% in 2014, and should now remain in decline through the year 2018.

This presents clear challenges for companies like Microsoft or Hewlett-Packard that remain highly levered to the PC market to drive their respective financial performance. Worse yet, neither Microsoft nor Hewlett-Packard has been able to establish a meaningful presence in the tablet market that has so disrupted the PC market. Many expect Microsoft to eventually navigate this tricky transition. However, the future mobile future remains less certain for Hewlett-Packard. And in the video below, Fool contributor Andrew Tonner looks at the PC market outlook and how investors should be framing these challenging circumstances as well.

The PC market's pain is this under-the-radar company's gain
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2866844, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:06:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement