IBM is leaving the hardware computer market. Maturity in the market has meant demand for PCs has levelled off. Businesses still need them, but the ordinary consumer already has an old version gathering dust.
When a person needs to search the Internet he/she uses his, now large, mobile phone or tablet. It should be noted that the tablet market has tapered off as well. Just about anyone who wants one already has it. Cheap clones on sale in supermarkets has reduced profit margins significantly. Even the giant mobile phone maker Samsung has announced that it has had a bad year.
Apple is losing out to Android and its days of premium pricing are coming to an end. Unless it comes out with useful new ideas its sales will fall. It definitely needs to look into the crystal ball. Unfortunately, a crystal ball cannot be found.
Giants of recent decades have been bought out by rivals and shut down. Making what was in demand in the past is a losers game. Let's face it - some of the ideas taken on by Google are utterly stupid. Drones to deliver pizzas is an example. How can drones be allowed to fly about in populated places. Google will have injuries and law suits from everywhere.
Cloud computing may help IBM in the short term. If they want to stay relevant they will need something else. There are too many free cloud offerings out there for server profits to stay high. It is not feasible for all companies to be in the large data market.
Apple has to have a rethink and Microsoft has to wean users off Windows 7. Unless Threshold, Microsoft's version 9, offers something new and special users will remain stuck to the old system and profits will fall. Apple gives its operating system away for free. How much longer can Microsoft charge for their's?
Technology by Ty Buchanan
