Apple CEO Steve Jobs said on Tuesday night that personal computers running rival Microsoft’s Windows operating system are in a permanent decline and that only a fraction of current users will still rely on them in the future.
In a rare onstage interview at the D: All Things Digital conference, Mr Jobs compared the fate of the PC to trucks in agrarian America. The dominant vehicle when farming was the way most people earned a living, they were vastly outnumbered by cars when the country became more urbanised. Read more
Over the past few years, putting together desktop and notebook computers has not been enough for the Taiwanese contract manufacturers that actually produce the vast majority of the world’s PCs.
Companies like Compal, Wistron and Hon Hai – relatively unknowns names that brands like HP, Dell and Acer rely on to do the actual manufacturing – have all looked towards TV assembly as the next big driver for growth, particularly as Japanese brands like Sony and Toshiba are increasingly finding it too expensive to manage their own manufacturing operations.
The FT’s Lex column says that it was high time Lenovo’s optimistic investors were brought back to earth, and that fixing the PC company’s struggling international operations will not be easy:
Founder Liu Chuanzhi, who returned as chairman in February, started by axing 2,500 overseas jobs in a bid to shave about 15 per cent from annual operating costs. But that’s the easy bit.