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Development Trends of the Worldwide
PC System Industry Market Intelligence & Consulting Institute (MIC)
Institute for Information Industry
1
Coverage of PC Systems
Desktop Notebook Tablet
Convertible NB Detachable Tablet
2
Contents
Global Market Trends
Product Development Trends
Highlighted Topics
Conclusion
3
2014 2015(e) 2016(f) 2017(f) 2018(f) 2019(f)
Tablet Vol 242,140 214,258 190,138 180,631 175,212 176,964
DT Vol 131,976 120,110 119,450 118,772 117,530 115,374
NB Vol 172,130 167,482 166,310 165,645 165,976 166,806
NB GR(%) -0.3% -2.7% -0.7% -0.4% 0.2% 0.5%
DT GR(%) 4.0% -9.0% -0.5% -0.6% -1.0% -1.8%
Tablet GR(%) 1.3% -11.5% -11.3% -5.0% -3.0% 1.0%
-20%
0%
20%
40%
60%
80%
100%
0
100,000
200,000
300,000
400,000
500,000
600,000
Global PC System Market Volume, 2014-2019
Thousand Units Growth
The recently ended replacement demand for commercial models, Microsoft’s unclear subsidy policy for Windows notebook PCs, and the deferred launch of Intel’s new platform all have contributed to a huge slump in global PC demand; the global tablet market has been shrinking as well, due largely in part to cannibalization of large screened smartphones, also known as phablets
Source: MIC, July 2015
Note 1: GR is Year-on-Year Growth Rate
Note 2: AIO PCs were consolidated into DT PC market volume
4
Industry Concentration Further Intensified
Due to Changing Growth Drivers
With second-tier notebook PCs fading out and the continued low-priced trend of notebook PCs, market
share of first-tier notebook PCs continues on the rise; the industry concentration of desktop PCs is expected
to be further intensified owing to the increasing share of commercial desktop PCs and first-tier brands’
continued attention into emerging market developments
Source: MIC, July 2015
0%
4%
8%
12%
16%
20%
2012 2013 2014 2015(e)
HP Lenovo Dell AcerASUS Apple Toshiba Samsung
Notebook PC Market Volume Share by
Branded Vendors, 2012-2015
0%
5%
10%
15%
20%
2012 2013 2014 2015(e)
HP Acer Dell Lenovo Apple
Desktop PC Market Volume Share by
Branded Vendors, 2012-2015
5
Windows PC Share Falls Below 90%
2012 2013 2014 2015(e)
Others 30.1% 30.9% 29.4% 28.2%
Mac 5.8% 5.7% 6.5% 7.0%
Chrome 0.1% 0.9% 2.1% 3.2%
Android 0.0% 0.2% 0.7% 0.9%
Windows 64.0% 62.2% 61.3% 60.7%
0%
20%
40%
60%
80%
100%
Global PC Shipment Volume Share by Operating
System, 2012-2015
Source: MIC, July 2015
Note: Tablets were excluded here
Windows64.0%
Android2.1%
Chrome0.10%
Mac4.0%
Others29.8%
Global Desktop PC Shipment Share by Operating
System, 2015
Windows, 58.2%
Android, 0.0%
Chrome, 5.5%
Mac, 9.3%
Others, 26.9%
Global Notebook PC Shipment Share by Operating
System, 2015
Owing to increasing sales of Chromebooks and Macbooks, the room of Windows OS has been
significantly squeezed; the launch of Microsoft Windows 10 however is expected to only have a limited
contribution to PC market share, given the fact that the latest commercial replacement just ended and
Microsoft would offer free upgrades to Windows 10
6
Mobile Computing Market Starts to Witness
Year-on-Year Decline in 2015
2012 2013 2014 2015(e) 2016(f) 2017(f) 2018(f) 2019(f)
Mobile Computing Device 333,240 411,532 414,270 381,740 356,448 346,276 341,188 343,770
Tablet Vol 140,884 238,930 242,140 214,258 190,138 180,631 175,212 176,964
NB Vol 192,356 172,602 172,130 167,482 166,310 165,645 165,976 166,806
Mobile Computing Device GR 92.0% 23.7% -0.3% -2.7% -0.7% -0.4% 0.2% 0.5%
NB GR 24.0% -10.3% 1.3% -11.5% -11.3% -5.0% -3.0% 1.0%
Tablet GR -1.6% 69.6% 0.7% -7.9% -6.6% -2.9% -1.5% 0.8%
Tablet/Mobile Computing Device 42.3% 58.1% 58.4% 56.1% 53.3% 52.2% 51.4% 51.5%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
100,000
200,000
300,000
400,000
500,000
600,000
Source: MIC, July 2015
Strong sales of 7” low priced models led to significant tablet market growth over the past 2 years; the
tablet market has been losing steam since 2014, affected mainly by phablets and low-priced notebook
PCs
Thousand Units
Global Mobile Computing Market Volume, 2012 - 2019
Growth
7
White-box Tablet Begins to Lose Momentum
Almost two-thirds of tablets embrace Android OS and the widespread use of reference designs have led to
a high level of homogeneity and limited differentiation among tablets; the tablet market thus has
inevitably fallen into a vicious cycle of price competition
Growing popularity of phablets has significantly eaten into the market of 7” tablets and slowed growth
momentum of white-box vendors, thereby reshuffling their market positions
Source: MIC, July 2015
Tablet Market Share by Branded Vendors,
2012-2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
2012 2013 2014 2015(e)
Windows Android Chrome
iOS Others
Tablet Market Share by Operating System,
2012-2015
0%
10%
20%
30%
40%
50%
2012 2013 2014 2015(e)
Apple Samsung Amazon
Google ASUS Acer
White Box
8
Contents
Global Market Trends
Product Development Trends
Highlighted Topics
Conclusion
9
New Product Line to Bring Added-value to
Notebook PCs
With the notebook PC market declining, to prevent from falling into the price competition that erodes profits,
notebook PC vendors have started to increase new products lines featuring slim and lightweight form factor,
HD, cloud-based applications; for instance, Chrome OS leverages cloud computing to cut down hardware
costs while maintaining product efficiency
Source: MIC, July 2015
NB Product Line Pricing Distribution
Efficiency
Price
Slim
Gaming/
Workstation
2-in-1/
Convertible
New
Macbook Macbook Air
Ultrabook
Chromebook
Netbook
Slim,
Retina
Detachable/C
onvertible
Slim
Slim
Chrome OS
• Hinge Up
• Battery
• Mac OS & Core
• Hinge Up
• Slim Panel
• Hinge Design
• Marketing
• Thermal Design
10
Gaming NB Brands Face Fierce Competition
To ensure the sustainability of gaming PC business, HP and Acer both launched sub-
brand for PC gaming for the sake of marketing
Established gaming brands MSI and Gigabyte have capitalized on their product
specialization to go high-end and mainstream
Mainstream
Gaming NB
High End
New
Competitors
Expansion of
Gaming NB
Brands
Mainstream
11
Branded Vendors Have Different Deployment
Strategies for Gaming PC
In the desktop PC market segment, gaming PC is the area still enjoying positive growth; SFF PC, Media Center PC and AIO PC are hitting growth ceilings
Vendors have different deployment strategies for gaming PCs: Dell focuses on comprehensive deployment, HP on highlighted deployment; Acer on concentrated deployment; L on both entry-level and high-end deployment
Starting Price
(US$)
Form Factor Console Desktop Tower
$499.99
$849.99
$1,599.99
$4,499.99
$699.99
$1,499.99
$599.99
Acer
Dell
Lenovo
HP
Note: HP embraces only one model but consumers are allowed to select technical specs required online
Source: Respective companies, compiled by MIC, July 2015
12
Small Form Factor Desktop PCs Looks to Catch
Coming Wave of IoT
In 2014, Intel launched NUC (Next Unit of Computing) platform, thereby driving the development of small form factor desktop PCs with weight less than 1kg; the enhanced efficiency of mobile key components and improved heat dissipation technology also help minimize the volume of gaming PCs
Acre Revo One A world of entertainment in a
mini PC.
Asrock Beebox The world’s first Intel
NUC Mini PC with a
USB Type-C Port.
ASUS ROG G20 The World’s most powerful
compact desktop
13
2-in-1 Form Factor to Jump-start Consumer
Demand for Tablets
2013 2014 2015(e)
WW Tablet 238,930 242,140 214,258
2-in-1 1,725 8,027 13,045
2-in-1/Tablet 0.7% 3.3% 6.1%
0%
2%
4%
6%
8%
0
5,000
10,000
15,000
To avoid stiff price competition, several branded vendors have actively developed 2-in-1 tablets in 2015; among them, Microsoft and ASUS are the most outstanding players; MIC estimates the 2-in-1 tablet market will grow 62.5% in 2015 compared to 2014
2-in-1 Tablet Shipment Volume,
2013-2015
Source: MIC, July 2015
Note: 2-in-1 tablets were consolidated into total tablet
market volume
Thousand Units
26.6%
24.3%7.1%
6.7%
35.2%
ASUS Microsoft Acer HP Others
2-in-1 Tablet Market Share by Branded
Vendors, 2015
14
Contents
Global Market Trends
Product Development Trends
Highlighted Topics
Conclusion
15
Windows 10 Comes in 6 Editions to Cater
More Consumer Needs
During the development of Windows 10, Microsoft obtained user feedbacks from its Insider Program to ensure that it caters more to user needs with improved UI and application designs in the consumer market; additionally, Microsoft has been increasing the levels of safety and installation convenience for its Windows 10 users in the commercial market
Other than the availability of Windows 10 Education, Microsoft has also cut down licensing fees to help its partners reduce hardware prices such that their products are price competitive compared to other Chromebook-like products
Different UI
Continuum Cortana
Universal Apps
Windows Hello
In-Place
Upgrade
Source: MIC, July 2015
Windows Home
Windows Pro
Windows Enterprise
Windows Education
Low End • Size
• CPU
• Memory
• Storage
• Market
Mainstream
High End
Licen
sing
fee
Windows 10
Desktop Edition
Windows 10 and Licensing Types
16
Chrome OS Applications Aim for Market Expansion
2012 2013 2014 2015
Volume 420 2,760 6,330 9,230
NB Ratio 0.2% 1.6% 3.7% 5.5%
0%
1%
2%
3%
4%
5%
6%
0
2,000
4,000
6,000
8,000
10,000
Europe and the United States have been introducing notebook PCs for the purpose of K-12 education, thereby benefiting Chromebooks that are often priced lower and are able to provide cloud-based applications
To exploit opportunities in the commercial market, Google has actively cooperating with hardware makers and channel distributors in the hope of capitalizing its cloud-based applications to capture more traction in this area
Source: MIC, July 2015
Chromebook Shipment Volume, 2012-2015
Hardware
Virtual Platform
Applications
Channels/ Markets
Chrome OS Partners
Thousand Units
17
Processor Battlefield Shifting to Chrome OS Products
Hig
h E
nd
M
idd
le En
d
Lo
w E
nd
Source: respective companies, compiled by MIC, July 2015
Affected by the declining tablet market demand, Chrome OS products have become a new
battlefield for ARM processors
Tablet Notebook Desktop
18
Tablet Detachable Convertible Ultra-slim Clamshell
Celeron/Pentium Core M Core i3/i5/i7 Atom
Braswell Broadwell Y Broadwell U Cherry Trail Broadwell H
Low-power Core M Processors Getting
Slimmer and Lighter
Intel launched a series of Core M processors, codenamed Broadwell, which is designed to continue Y-series processors’ low power consumption advantage and to better 2-in-1 NB/tablet market positioning and marketing strategies
With the improved efficiency provided by Intel’s built-in processors, Intel is able to boost low-powered BroadwellYprocessor to provide basic efficiencies
Source: MIC, July 2015
Type Ultra-slim with Core M
Brand
Model
Apple
New Macbook
Lenovo
Yoga 3 11
Asus
Zenbook UX305
CPU Core M-5Y31 Core M 5Y10c Core M 5Y10
Display 12.0” Retina 11.6” FHD 13.3” FHD/QHD+
Thickness 13.1mm 15.7mm 12.3mm
Weight 920g 1.2kg 1.18kg
Price US$1,299 US$699 US$700~1,000
HD 4400 HD 5500
Iris 6000
HD 6000
GFLOPS
Efficiency Comparison of Intel’s Processors
19
Valve Continues on Gaming Ecosystem Expansion
Developer Tools &OS
Source Engine 2
App Store & UGC Platforms
Steam Gaming Steam Workshop
Entertainment Devices
SteamOS
Steam Machine Steam Controller
Steam Link SteamVR
Source: Valve, compiled by MIC, July 2015
Brand Alienware Gigabyte Asus
Snap-
shot
Model Steam Machine BRIX Pro ROG GR8S
CPU Core i3~
Core i7 Core i7-4770R Core i5/i7
GPU GTX 2GB Iris Pro graphics
5200 GeFroce 9 series
Storage
Device
500GB~2TB
Mechanical
Type
1 x 6Gbps
SATA3
500GB/1TB
Mechanical
Type
128GB ~
512GB SSD
Price USD 479.99~ USD 599.99 USD 699.99~
With built-in Steam OS, Steam Machine is able
to help Valve become more independent from
Microsoft’s Windows and provide more flexible
hardware specs
20
Taiwanese PC System Industry’s Global Share
Source: MIC, July 2015
The increasing in-house manufacturing ratio of Chinese makers has continued to narrow the room
of development for Taiwanese companies; on the rise of emerging market demands, Chinese
companies have increased the production share of local suppliers or EMS, thereby constraining the
development of Taiwanese players
Global Share of Operating Systems Adopted
by Taiwanese PC Systems, 2012-2015
Taiwanese PC System Industry’s Global Share,
2012-2015
21
While PC System Market Share Sliding,
Revenue Share on the Rise
When it comes to revenue share of individual products, PC products’ share of established brands
and ODM makers is decreasing and they have been turning to network communications, consumer
electronics and IoT applications instead
Source: MIC, July 2015
0%
20%
40%
60%
80%
100%
2012 2013 2014
Intel
Acer
Lenovo
Microsoft
Asus
TW ODM
HP
Apple
PC Products’ Revenue Share of Established PC Vendors
and ODM Makers Network
Comm.
Product
Consumer
Electronic
Product
IoT Product
Others
(eg Solar)
22
Wearables Remain the Most Popular IoT
Applications in the Short Run Global Smart Wearable Market Volume, 2013-2019
12.7
31.5
74.9
114.2
154.5
192.9
231.9
0%
40%
80%
120%
160%
0
50
100
150
200
250
2013 2014 2015 (e) 2016 (f) 2017 (f) 2018(f) 2019(f)
Volume Growth Rate
2013~2019 CAGR 62.4%
Despite the proliferation of smart wearables, without clear product and market positioning, the development
of wearables is still at the infancy stage; due to low entry barriers and price tags, smart wristbands and
watches are expected to continue claiming the largest share of IoT applications in the short run
Source: MIC, July 2015
Million Units
Smart Watch Smart
Wristband
Smart Watch/Wristband Types
Standalone
Accessory
Detachable
Integrated
RTOS
23
IoT Applications Put Vendors’ Manufacturing
Flexibility to the Test
-
2,000
4,000
6,000
8,000
Fitbit Garmin Xiaomi Nike Sony Samsung Others
Smart Wristband Shipment Volume by
Branded Vendors, 2014
-
2,000
4,000
Samsung Garmin Pebble Sony Casio Others
Smart Watch Shipment Volume
by Branded Vendors, 2014
Source: MIC, July 2015
Note: Figures included in the bracket indicates the number of models currently available
IoT has become the future of the ICT industry; however as hardware specs remain one of critical success
factors for companies developing IoT, the establishment of a new business model should be highlighted as it
is expected to add value to the ICT industry
Taiwanese ICT vendors have been long dedicated to contract manufacturing services; however, affected by
the availability of new technology, vendors focus more on strengthening their system integration and
flexible manufacturing capabilities instead
Thousand Units
(4)
(2)
(1) (1) (2) (1)
(4) (4) (4)
(2) (2)
Thousand Units
24
Contents
Global Market Trends
Product Development Trends
Highlighted Topics
Conclusion
25
Conclusion
Following the recently ended replacement of commercial models, global PC market is expected to witness another setback; coupled with a higher baseline in 2014, notebook PCs and desktop PCs have both witnessed significant declines in 2015
Affected by the increasing number of homogeneous products and prevalence of phablets, the global tablet market has started to witness decline in 2015; with various home appliances brands aggressively stepping into the development of large-sized 2-in-1 tablets, MIC predicts that 2-in-1 tablets will grow considerably in 2015 compared to 2014
To take Chrome OS seriously, Microsoft has set a different pricing strategy for its Windows OS; with the tablet market declining, ARM has been gearing up its adoption in products running Chrome OS; in the gaming sector, Steam Machine allows gaming PC development to be more flexible
Taiwanese contract manufacturers, though dominating the PC industry for years, need to strengthen their system integration and flexible manufacturing capabilities to produce more specialty products in small volume in the IoT era
Thank you!
27
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