Technology
2 Companies With the Most to Lose as the PC Dies
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The personal computer (PC) is slowly but surely dying. The latest evidence comes from U.S. chipmaker Intel Corp. (NASDAQ: INTC), which just made public its intentions to cut 12,000 jobs globally, on the back of a weakening PC industry and the resulting necessity for a reshuffle and refocus. Intel intends to revamp its operations to tender to the increasing shift toward mobile devices. Markets have not been particularly sympathetic to this suggestion, however, and Intel’s stock is down close to 10% on its 2016 highs.
The workforce trim is representative of a wider market shift, and a number of other layers in the space look set to be forced into revamping operations to accommodate industry trends. Here are two that could struggle as 2016 plays out.
AMD
Advanced Micro Devices Inc. (NASDAQ: AMD) builds and sells microprocessors and chips, the vast majority of which go toward a PC build. Its products are still very popular with a fringe of the PC space — specifically gamers and other high performance demand customers — but this fringe makes up a very small fraction of the overall market. The much larger portion is the casual use space. Most of these customers are shifting to mobile devices. For the everyday tasks of the casual PC user — email, internet browsing and so on — desktops (and even laptops, to some extent) are becoming obsolete, as mobile devices cater increasingly well to these tasks. With the concurrent shift from web interface to application based interaction, this trend is becoming even more pronounced.
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