Samsung said to be shuttering desktop business

Samsung said to be shuttering desktop business

Summary: UPDATED: Already one of the leading mobile device makers in the world, Samsung is getting out of the PC business.

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Samsung has seen the writing on the wall for the PC market and is apparently getting out of the business altogether.

The Korea Times reported on Monday that the Seoul-based corporation is killing off its desktop business.

For anyone who wasn't already aware that Samsung had a desktop unit, the move makes a lot of sense given Samsung's strength and leadership in both the global mobile market as well as the Android ecosystem.

See also: Tablet screen choice overkill: Samsung's 7-inch Galaxy Tab 3 vs. 8-inch version

Reps for Samsung told the news service that because "demand for conventional desktop PCs is going down," Samsung will now divert its "resources to popular connected and portable devices.”

The Galaxy S maker routinely comes out on top of mobile OEM sales and shipments charts, occasionally trading back and forth with Apple on both domestic and global accounts.

Samsung's focus on mobility and its now lack of interest in PCs are not mutually exclusive.

It wouldn't come as a shock if more tech companies with diverse product portfolios cut ties with PCs to conserve resources and boost their bottom lines.

As further evidence for those possible motives, Garnter published a new forecast earlier on Monday that shipments of traditional PCs (meaning both desktops and laptops) are expected to reach 305 million units this year -- a 10.6 percent decline from 2012.

Furthermore, the IDC released a report back in April that found global PC shipments had declined by 14 percent during the first three months of 2013 -- the worst plunge for the segment since 1994.

UPDATE: The PR team for Samsung’s consumer IT division sent us the following clarification. ZDNet's Zack Whittaker also filed a follow-up story on Tuesday.

The rumor that Samsung is withdrawing from the PC desktop business is groundless. Samsung will continue to offer diverse PC products according to consumer and market needs.

Topics: Hardware, Mobility, Samsung, PCs, Tech Industry

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33 comments
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  • LAPTOPS

    So what does this mean for Samsung's laptop business? Will they continue building Windows laptops? The article isn't entirely clear about this.
    dsf3g
    • @ dsf3g

      Look at the original article for this statement:
      "Tablets, all-in-one and hybrid PCs are Samsung’s current focus. Samsung is speeding up its restructuring of its PC business via product realignment toward profitable variants,” said another Samsung official."

      It looks like Samsung will focus most on tablets followed by ultramobile PCs (includes ultrabooks, detachables and convertibles) next followed by AIO PCs last. It looks like both desktop and traditional clamshell laptop PCs are less of a priority being completely shutdown.
      calahan
      • Copying the leader

        It seem they are focusing on the market where Apple operates, perhaps believing this is why Apple are successful.

        If Samsung brings to market an clone of the new Mac Pro we will know for sure ;)
        danbi
        • copying?

          You must be a big Apple fan. Apple started out as a desktop computer manufacturer and branched off to mobile, with quite a bit of success with iPods and later iPhones given the youthfulness of the smartphone market and their extensive resources from their DESKTOP products. Whereas Samsung started largely as a mobile computing company producing mainly run of the mill cell phones (flip, bar, etc.) later dipping it's toe in the desktop PC market. Apple has always had a larger desktop business than Samsung but Samsung has been the leader in mobile computing (not smartphones) for quite some time, and has not super recently but fairly recently taken over the smartphone market. Apple still pushes a lot of resources to it's desktop business, it's just not heard of as much as their mobile products due to the shrinking size of the desktop market. Not meaning to sound like an anti-Apple person, if I am sounding like one I apologize.
          MurphyDTM
  • Wow! Guess the post PC apocalypse is real after all

    As electronics become more powerful and more mobile, the lion's share of consumer computer purchases will become hybrids and tablets.
    kenosha77a
    • Simplicity?

      Why is simplicity so underrated?

      "How Steve Jobs' Love of Simplicity Fueled A Design Revolution
      http://www.smithsonianmag.com/arts-culture/How-Steve-Jobs-Love-of-Simplicity-Fueled-A-Design-Revolution-166251016.html

      Google pretty much gets it with Android and Chrome OS. And Microsoft gets it with Windows Phone 8. But, Windows 8, whether the Surface RT, Surface Pro, Windows RT or Windows 8, not so much. At least, not yet.
      Rabid Howler Monkey
      • Windows 8 is a great idea...... not sure about the marketing/timing of RT.

        RT was probably released a bit early and may have faired better if common windows/office apps were present. The pro is different, and win8 is great IMHO... and offers one online profile for the surface pro and any other win8 kit you use. I think it will be simple and elegant BUT we've still got the MS legacy to work around. That's no bad thing and not a criticism... just a fact that we all need to work around certain aspects of life till it gets overtaken. And remember many folk will not give win8 a second look because it doesn't look like XP. I say move on and get on the roadmap to the next phase.

        Plus I firmly believe we will need to see more app based programs in the PC environment. There's too much phishing and scamming and the only real protection will likely be sandboxed apps from your bank and other financial institutions for instance, and secure comms to them. The days of internet links is numbered and dependent on the success of the crooks that are clearly very clever and on the ball!
        johnmckay
        • Re: Windows 8 is a great idea.....

          Yes, just as Communism is.

          Might be, in some other reality both work.
          danbi
          • Windows 8

            Windows 8 is a good idea in essence. It just needs a bit of tweaking.
            The market is obviously shifting away from the standard PC and Microsoft took a gutsy jump forward, they just tried too hard to male it the best of both worlds and didn't execute it properly. RT should be a little less desktop based and have mobile versions of the apps we know and love (or at least allow the companies to write them). Pro should be almost just as it is with a few minor tweaks to make it more fluid and connected. But this is just my opinion.
            MurphyDTM
    • Maybe not so much, kenosha77a?

      "Guess the post PC apocalypse is real after all"

      Maybe not so much. There are many electronics makers that have gotten out of the PC business years ago, and I've only seen one Samsung laptop in the past 2 years. What I have seen is Dell, HP, Lenovo, Acer, or Apple.

      It's not their core busines, and likely not close to the top compared to the likes of PC OEM's, so why invest the money in it if the ROI is low compared to other units?

      Dell deciding NOT to continue making their own smartphone doesn't mean it's the post smartphone apocalypse, it just mean sthat in today's environment, it's not worth the investment.

      Though this is good news for the like of Dell and HP, where PC's ARE their core business.
      William Farrel
      • Re: What I have seen is Dell, HP, Lenovo, Acer, or Apple

        Who else of those is making money from Windows, apart from Lenovo?
        ldo17
        • Dell and HP are.

          I'm not sure about Acer though.

          Even if they dropped out of the consumer space, both Dell and HP have a strong presence within the business segment.

          ThinkPads (Lenovo) dominate the low and middle powered market, but EliteBooks (HP) and Precisions (Dell) own the high-end space.

          Very few machines have displays comparable to Dell's and HP's, and even fewer can compare in horsepower.

          So even if they stopped making money from "normal" notebooks, they are still making money from their workstations and services.
          ForeverCookie
          • Re: Dell and HP are

            Dell and HP are looking to get rid of their PC businesses completely.
            ldo17
          • Dell & HP

            I hope you're wrong. I've come to like HP desktops and use them exclusively. I doubt I'll ever give up desktops. They just suit me fine, although I do have portable units, I don't use them much.
            Hans Schmidt
    • Depends what you call a PC though....

      Sounds to me like the surface pro is tablet/laptop/desktop. Why have a PC if one mobile device and dock will do the job most of us want? No need to worry about data synch as it's all on one device, or one config to cloud etc (if that's your thing).

      It'll likely be my next big purchase as my ipad mini sits doing browsing and Jukebox/Radio in the living room as it's not great for connecting to my office PC (no mouse support results in a poor user experience via citrix IMHO). I can justify handing back the MacBook air and windows laptop and just use a surface pro.. that's the current plan anyway.
      johnmckay
    • Desktops

      All in one devices are replacing desktops, because they support touch and offer a better experience. Even the all in one designs offer a degree of portability that desktops don't.

      PCs are changing shape.
      Emacho
      • Re: All in one devices are replacing desktops

        These are desktops.
        danbi
  • Tablets

    SSSSHHHHH!! Tablets are a fad! No one wants them!

    /sarcasm_off
    THavoc
    • Yet, the tablets are having to gain the power of the PCs, in order to

      continue to attract people to them.

      So, when does a tablet cease being a tablet? Can it still be classified as a tablet when it gains all of the traditional features of a PC? Is the Surface Pro a tablet? When it comes to size, it can be classified as a tablet, but when it comes to the features is offers, it's a full-scale PC. And the Surface Pro is not the only "tablet" coming out with Windows 8, and in due time, most tablets will be full-feature PCs, but in smaller packages.
      adornoe@...
      • Re: So, when does a tablet cease being a tablet?

        Perhaps, when you add a hinge to it and snap an keyboard. Or, when in order to make use of it's advertised capabilities, you need to put it on a flat sturdy surface.

        Things like that.

        No change in performance or "full feature (junk) Windows" changes whether an tablet is a tablet.
        danbi