Boston, MA 09/25/2014 (wallstreetpr) – If someone says that desktops and laptops are totally irrelevant these days, you feel like an era is coming to an end. But, that is happening right now and who would know it better than Samsung? The decision of the company to curtail laptop sales in Europe is surprising, but the fact is that it has actually become hard to extract money from laptop sales now. While Intel Corporation (NASDAQ:INTC) tried to counter the diminishing demand with Ultrabook, the basic problem is that the profit margins have taken a dip. Forbes believes that even Apple Inc. (NASDAQ:AAPL) is not grossing much on Macbook Air now.
Companies Migrating from Laptop Segment
Exit of Samsung from Europe is something that Forbes sees as a “smart move,” given that the profits on laptops have started sinking. It has already been witnessed how Sony Corp (ADR) (NYSE:SNE) sold the laptop unit to Lenovo Group Limited (ADR) (OTCMKTS:LNVGY). And it is expected a few more will follow the same steps soon. According to Forbes, Samsung will completely stop production of laptops down the line, given that its tablet and smartphone market will flourish more.
Even Microsoft Corporation (NASDAQ:MSFT), which is known for its software and can produce an excellent laptop, did not do so. Instead, the company entered the hardware market through Nokia Corporation (ADR) (NYSE:NOK) mobile phones and a tablet with Surface brand. So, it’s quite evident that this is a market that is breathing its last and for infusing life into it, there has to be a revolutionary thing.
The Technological Transition
So what is replacing laptops? The tablets- this is the answer. Tablets are offering a compact, all-in-one kind of platform to people and the fact that they are much more portable, adds to the demand. Better battery, not much weight and pocket-friendly- all these comprise of the features of tablet. With the 4G enabled characteristic, a consumer gets more than expected.
