PRODUCT LIFE CYCLE Of Desktop PC’s (By Group1) A.V.Suuresh-9040 Mithun Kumar Patnaik-9082 R.Dinesh-9062 G.Abhinay-9075 K.L.Tharun-9012 Malathi Dandu-9061 Nandita Sadani-9048
Introduction of PLC Product development begins when the company finds and develops a new product idea. During product development sales are Zero and the company’s investment cost mounts. The stages of PLC are: 1) Introduction 2)Growth 3)Maturity 4) Decline
PLC Characteristics and Objectives Marketing Objectives
Stages of PLC for Desktops
Introduction stage The first desktop computer kit, an Altair, which retailed for slightly less than $400, was sold in 1974 by Micro Instrumentation Telemetry Systems (MITS) The first home computers had programs and data loaded from a cassette tape machine. During the late 1980s and early 1990s, commercial systems being developed by large commercial institutions like IBM had smaller floppy disks in them.
Cont.. Distribution was selective until early 1990’s. A standardized, one-model product There was lesser awareness among people. It was more for a Niche segment. Companies spent a lot for sales promotion but sales were quite low.
Growth stage Higher-end computers had a hard drive of ten megabytes and, consequently, the system would start from the hard drive. Screens went from low resolution "green” and plasma yellow screens to color VGA and SVGA (Super Video Graphics Array). Massive improvements not only in speed and capacity, but also in resilience to damage and reliability of performance. Electronics stores purchased them and resold them to customers, which meant that people might not be getting a computer with the exact configuration they wanted
Cont.. Michael Dell's idea was to build computers to order, and sell them directly to his customers. While still a college student, he used $1,000 to put his idea into action. There was a rapid rise in the sales of all companies. The competition was getting tighter with players like Dell,HP,Compaq,IBM fighting it out.
Maturity stage Laptops being introduced in the market. The cost difference is still significant. People paying about $800 for a typical desktop PC with a 3-GHz processor, 1GB of RAM and a fast hard drive, excluding the monitor. A comparable ThinkPad laptop costs about $1,500. Administrative assistants, call center staffers and others who work from a fixed location and don't need to travel or telecommute likely to remain on desktops.
Cont… Desktop sales buoyed by processing-heavy applications, primarily video game playing, and editing and viewing HD and 3D video and graphics, as the market grows for devices that capture HD and 3D videos and still images Sales were at the peak for all companies. Companies like Dell and HP trying to advertise more to state the brand differences.
Cont.. There is no doubt that we are moving towards mobile computing. Infact, if you compare the scenario change over last 4-5 years, the change has been drastic to say the least. Consumers are doing away with there desktop computers and are increasingly moving towards Notebooks, netbooks & now tablet PCs. Even Businesses and Offices now prefer getting notebooks for their employees, rather than being getting stuck to Desktops.
The year 2008-09 has been generally down for all businesses, thanks to the global meltdown, so the fall in previous year can be attributed to that. However, if you look at the growth for past 4 years, you will notice that Notebook sales have grown at a very healthy pace. While 850k notebooks were sold in 06-07, the sales numbers tripled over last 4 years to 2.5 million units.
Decline stage Virtual computing Probabilistic computing Professional use The fall of the Gaming PC
Since the Dot-Com burst of 2001, the global PC market suffered a contraction in unit shipments in 2009, due to a combination of falling IT spending and plunging sales of desktop computers, according to iSuppli Corp. In contrast, notebook PC shipments in 2009 have rised by 11.7 percent to reach 155.97 million units, up from 139.6 million in 2008. However, according to market research firm NPD, desktop computer sale surged in February, up 30 percent compared to February of 2009 only because of the introduction of Windows 7.
Conclusion Desktops are declining because of the following reasons: Laptops are obviously more portable than desktops Laptops require lesser space. Since the introduction of wireless broadband, you do not even need a fixed line connection.
Cont.. Laptops consume lesser power than desktops. Many substitutes have evolved of late and hence desktop pc’s will continue to decline. You can choose the one that will suit your needs and requirements best.