Why Did Samsung Leave Desktop Computing?

| July 4, 2013 | 1 Comment

A recent report in Korea Times announced that Samsung was pulling out of the desktop computer segment, and this news has created quite a stir in the media!

Infect, this information drew a lot of attention because industry watchers had long been expecting this move from a few companies. With the rapid rise of smartphones and tablets, the traditional desktop market has reduced in size. For this reason, it is predicted that other companies may also pull out of the desktop niche and soon follow in Samsung’s footsteps.

Samsung has however denied the report, and has stated that this segment of their business caters to diverse consumer needs, which is why they are quite willing to continue offering desktop models, including tower PCs.

Why Would Samsung Consider Leaving The Desktop Segment?

It Was Never On Top

Samsung has never really been a dominant player in the desktop market, and is not even amongst the top five PC makers. However, Samsung’s major success story has been in the portable and mobile segments.

Since the launch of the Android platform, Samsung’s products have started to challenge Apple’s iPhones and iPads. With innovate phones, attractive designs, and high qualityperformance, Samsung has managed to gain many new customers. Its global market share in the smartphone segment stands at 30.8%, while Apple, in second place, has only 18.2%. As Samsung’s mobile device segment grows, its attention from desktops is slowly weaning away.

An Age Of Mobile Multitasking

The question as to why companies like Samsung may eventually stop making PCs needs to be addressed. When laptops were initially introduced, they did not really threaten the desktop. However, laptops gradually started to become more powerful, and consumers started preferring these compact devices over bulky desktops.

In the middle of the first decade of the new century, mobile devices became more powerful, and new possibilities started to open up. Apple’s iPhone changed the way people viewed their mobile devices. Other manufacturers began to follow suit, and the Android platform led to a boom in the handhelds markets.

Smartphones and tablets could now be used to browse the Internet, click photos, hold video chats, and do much more. These small devices became capable of doing what only PCs and laptops were able to do till date. This trend in personal computing has caused serious concerns for the future of both desktops and laptops.

Consumers now prefer replacing their computers with smartphones or tablets, as these devices can do mostroutine tasks. Analysts had predicted a decline of PC sales by 7.8% in 2013. However, during the first quarter of the year, the sales of personal computers have fallen by as much as 13.3%.

The traditional desktop PC is also getting reinvented, and compact all-in-one models are slowly being released into the market. Though these are not yet powerful enough to replace the tower desktop, it is interesting to note that the classical PC models are being challenged in their own terrain.

The World Is Going Hybrid

Hybrids, devices that combine the laptop and tablet are also selling like hot cakes due to the usability factor. This is another one of the primary reasons why Samsung is looking at the mobile segment more than the desktop segment.

Samsung’s fortunes in these fields have been good, and the company continues to make successful tablets and mobiles that are great hits in the market.

The personal computer horizon is evolving. Though Samsung has not yet confirmed that they’re pulling out of the PC manufacturing, the slow demise of their desktop segment does not seem very far off. Samsung has always been a significant player in the mobile phone arena, and therefore, it might eventually make perfect sense for them to pull out of the desktop business and devote all their resources to their mobile phone units.

The company may also decide to focus on new types of inventions that are making devices even smaller, while fulfilling the daily needs of most customers.

Right now, it’s important to remember that none of these devices are as powerful as a desktop. For serious gamers, animators, movie makers, and other such professionals, a phone or a tablet will not be enough to run their programs. Most offices still use desktop machines instead of laptops, let along any other devices that are smaller. Even students prefer Laptops and there are several Laptops made for Students. Also, the storage capacity of desktops is much higher than any other computing product. At an age where everyone clicks photosand captures videos every day, the larger the storage capacity, the better things can be.

Desktops also come with larger screens, which are now available in High Definition (HD). Movie buffs will definitely prefer sticking to the traditional computer!

Since Samsung does not have a have a big share in the desktop market, a step toclose down this segment will probably not make much difference to either the company or its potential buyers. Samsung’s power lies in making mobile devices and the company will probably focus on this segment only, in the near future.

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Category: TECH NEWS & TIPS

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  1. Earlene says:

    I am so glad your article really helped me.
    Earlene recently posted…EarleneMy Profile

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