Michael Mace on the PC Industry’s Woes

The story of Dell's proposed buyout tells us a lot about the challenges of the PC industry in general.

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Michael Mace of Mobile Opportunity has blogged at length about the proposed buyout(s) which would take PC behemoth Dell private. If, like me, you don’t care much about whether Dell is public or private, that might sound tedious. But it’s actually a wonderful, wonderfully insightful read, because Mace’s real topic is the future of the PC business — especially the Windows PC business — in general.

Along the way, he also says something about business and punditry which we should all keep in mind every time we read anyone’s analysis of anything:

The problem with analyzing a company’s motivations is that you tend to assume there’s a logical explanation for the things it did. Often there’s not. Company managers are frequently fearful or misinformed, and sometimes they just make dumb mistakes.


It's not the whole PC industry which is on fire. It's a few companies that still don't get it to fit their products to 2013 but instead sell the same product as they did 10 years ago. ARM made a huge profit last quarter because they sell a 2013 apt product.  Even MS reported great revenue figures.

The overall sum spend on electronic devices is about the same as 3, 5 or 10 years ago (inflationary adjusted). It's just that people don't buy a $1000 laptop every 3rd year but instead spend their money for a $500 phone every 2nd year, a $400 pad every 2nd or 3rd year and a $500 laptop every 5th year.