PC Market Sluggishness Hit One of Its Lows in 2015
Microsoft's Growth Strategy Will Bear Fruit in 2016
PC market continued its fall in 2015 despite the launch of Windows 10
2015 was an important year in Microsoft’s (MSFT) history, as the company launched Windows 10 OS (operating system). The launch of Windows 10 was expected to lift the sluggish PC market. However, it was believed that offering Windows 10 as a free upgrade to Windows 7 and 8.1 users has limited the capability of the new OS to drive new PC demand or replacement in the PC market.
High adoption of mobile devices along with the strengthening of the US dollar (UUP) against major currencies led to the slowdown in PC sales in 2Q15. Moreover, the PC market’s growth is largely dependent on China (YINN), which itself is going through some difficult times.
Tech players, PC manufacturers try to revive demand in PC space
Sluggishness in the PC market impacted Microsoft’s Windows OEM (original equipment manufacturer) sales, as a majority of PCs use Windows operating systems in 2015.
Thus, with the intention of putting some life back into the PC market, Microsoft along with Intel (INTC) partnered with PC manufacturers Dell, HP (HPQ), and Lenovo (LNVGY) to create an advertising campaign across major networks in October 2015. After all, Microsoft’s Windows 10 and Intel’s Skylake were long-anticipated to revive the flailing PC market.
In the later part of the series, we will discuss that though Microsoft’s Windows 10 charm did not work on the PC market in 2015, there is still hope for its effect in 2016.
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