Ask Matt: Are falling PC sales a problem for tech?

Q: Are falling PC sales a problem for tech?

A: The personal computer used to be the ultimate tech device that set the standard. The PC’s role is changing, but that’s not necessarily a problem as the industry evolves.

The number of PCs shipped in the first quarter dropped anywhere between 9.6%, says market research firm Gartner, to 11.5%, according to IDC Research. The PC market has certainly plateaued as smartphones take on many simple tasks of casual users like checking email. While PC units aren’t growing, it’s still a big market. HP (HPQ), one of the few publicly traded companies focused on selling computer hardware, reported $101.7 billion in revenue the past 12 months and delivered a net profit of $3.8 billion. Net income was down 17% from the same year-earlier period, but revenue was flat. HP is looking to reinvigorate the PC line with new products like thin business laptops. Meanwhile, some tech companies are evolving the PC into new forms. Microsoft (MSFT) can return to double-digit profit growth as Windows pricing stabilizes and the company succeeds selling Surface devices, says Philip Winslow, analyst at Credit Suisse. Microsoft also sells profitable cloud-based services. The PC is important, but just one part of the tech business.

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.