Desktop PC’s nearing its end

Desktop PC seems to over as its more portable counterpart, the laptop as consumers are searching for light-weigh computers in nice designs for their use at home, in cafes and on the train to work.

On online shopping portal Amazon.com’s top 10 selling PC and hardware list before Christmas not a single desktop was included while seven laptop models were on the list.

It was a sign that desktop PC’s dominance is diminishing as lower prices and wireless advances make laptop the choice for PC users all over the world.

"On both price and performance, laptops are so competitive now it's surprising they weren't able to catch up with desktops even earlier," said iSuppli analyst Peter Lin.

"The ability to surf the Internet wirelessly at public places, the need to be able to take your office out with you when you travel, and an increasing range of notebook computers have all led to lower desktop sales."

In the third quarter of 2008, laptops posted a milestone as is surpassed desktop PC sales for the first time.

This 2009, laptops should increase their position as entry level price goes to $300. It is predicted to take up about 55 percent of all computer shipments.

Companies shifting choices

Waiting of the age of the laptop are many companies in Taiwan, the maker of around 80% of the world’s laptop PC. It includes the world’s top two contract manufacturers, Quanta and Compal Electronics and two of the most aggressive laptop brands, Acer and Asustek.

And while these firms saw a rise in their market share, Hewlett-Packard and Dell, world’s top two PC makers have seen their share plunged.

Some companies that manufacture PC parts like motherboards for huge desktop PCs have already changed their production for other electronic devices like iPhones

While laptops used to cost more than double that of a desktop with equivalent processing power, advances in technology and economies of scale have dragged prices down so much that little price differentiation exists today for most consumers looking for a daily use PC, analysts say.

"It's just evolutionary I suppose," said Gartner analyst Tracy Tsai. "Things have reached a point where the price difference is no longer as pronounced as before for many consumers, and the average person is more likely to choose the option that offers him portability over the one that doesn't."