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Samsung Moving Away From Traditional Desktop PC Business

By - Source: Korea Times | B 18 comments

A report from Korea claims that Samsung is bailing out of the traditional desktop PC market for tablets and all-in-one laptops instead.

The Korea Times reports that Samsung is bailing out of the "unprofitable" desktop PC business, and will focus on tablets and all-in-one laptops instead.

A company official said on Monday that the reason for the move is due to the drop in demand for traditional desktop PCs. Instead of investing in a money pit, the company will allocate resources to popular connected and portable devices. Research teams and technology development units are already receiving a boost for tablet and all-in-one laptop form factors.

"Tablets, all-in-one and hybrid PCs are Samsung's current focus," another Samsung official told the paper. "Samsung is speeding up its restructuring of its PC business via product realignment toward profitable variants."

Just recently, the Korean government deemed the desktop PC business as an industry suitable for smaller firms from 2015. But Samsung's shift away from the desktop sector, according to the report, shows that traditional desktop PCs in Korea are being phased out for more mobile, all-in-one devices such as convertible laptops.

Yet Samsung introduced the ATIV One 5 Style AIO PC last week, likely one of the "profitable variants" mentioned by the Samsung official sporting Windows 8, a 4.5 mm metal frame and the company's trademark "Galaxy" tablet design. Slated to launch later this year, it will pack a 21.5 inch Full HD touch screen, 4 GB of RAM, and AMD's A6 Series quad-core APU. Other features will include SideSync technology for sharing content to a smartphone, and HomeSync Lite for managing individual accounts on the PC while also backing up, managing and accessing content on smartphones.

Samsung reportedly sold 9.1 million tablets globally during the first three months of 2013, and is aiming to sell at least 33 million units before the end of the year, up from 16 million units sold in 2012. The company just introduced three new Galaxy Tab 3 units here in the States on Monday, spanning 7 inches to 10.1 inches.

"The connected world is going to expand," said Kim Il-tae, a senior fund manager at Taurus Investment. "This is the industry's new trend. Simply put, desktop PCs are no longer a cash-generator. Samsung is getting smarter."

Discuss
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  • 0 Hide
    Aaron Briggs , June 28, 2013 1:27 PM
    Sigh i hate all this mobile BS turning the market into a throw away tech with subscription based market. Ugh i wanna go back in time.
  • 0 Hide
    Aaron Briggs , June 28, 2013 1:27 PM
    Sigh i hate all this mobile BS turning the market into a throw away tech with subscription based market. Ugh i wanna go back in time.
  • 0 Hide
    milktea , June 28, 2013 1:47 PM
    Wow, didn't know Samsung was in the desktop PC business other than the 3.5" HDD.
  • 0 Hide
    tranzparentl , June 28, 2013 2:42 PM
    @milktea
    Samsung hasn't been in the 3.5" HDD business since 2011.
    http://www.engadget.com/2011/04/19/samsung-sells-hdd-division-to-seagate-for-1-375-billion/
  • 0 Hide
    Vorador2 , June 28, 2013 2:45 PM
    They made desktops? Or they're talking about laptops?
  • 0 Hide
    punahou1 , June 28, 2013 2:49 PM
    I did not realize that they were in the desktop business.
  • 0 Hide
    mitojee , June 28, 2013 3:00 PM
    Samsung is a mega-conglomerate so it has its hands in tons of businesses not just phones and electronics. Anyways, I guess its branded laptops and PC's are mostly sold in Korea or Asia.
  • 0 Hide
    Grandmastersexsay , June 28, 2013 3:09 PM
    I am getting tired of hearing about the inevitable demise of the PC from the people who stand to profit most from such an outcome.
  • 0 Hide
    anxiousinfusion , June 28, 2013 4:07 PM
    People don't realize what they've got until it's gone.
  • 0 Hide
    tinmann , June 28, 2013 7:32 PM
    Samsung makes a Desktop?
  • 0 Hide
    taptempo , June 29, 2013 3:50 AM
    Never even noticed they were in the desktop business.
  • 0 Hide
    halcyon , June 29, 2013 7:24 AM
    I look forward to seeing Sammy focus more on making better tablets and phones.
  • 0 Hide
    sonofliberty08 , June 29, 2013 7:37 AM
    never know samsung making any desktop pc beside 3.5" hdd that sold to seagate and 5.25" internal optical drive, and the desktop ram
  • 0 Hide
    Jeff Krogue , June 29, 2013 1:47 PM
    Gaming consoles have really gutted the high end desktop market, kind of a bummer.
  • 0 Hide
    austinwillis81 , June 29, 2013 1:58 PM
    As long as they keep making SSD's I'm happy.
  • 0 Hide
    flowingbass , June 29, 2013 7:10 PM
    Thats ok sasmung, just concentrate in keeping your phones competitive and innovative. We have lots of other companies to maintain the PC market.
  • 0 Hide
    cats_Paw , July 1, 2013 12:19 AM
    Let me get this straight:
    1)They Separate All-in-One from PCs. Note: All-In-One are PCs.
    2)They wont make more had drives? More ram memory? Or will they only make them for their All -In-One and tablets, loosing that market piece of the cake?
    3)They wont make monitors anymore?
    4)When exactly did Samsung make "PCs"? I was only aware of componenets.

    Im guessing Samsung is just trying to get free ads by making claims that inspire controversy.
  • 0 Hide
    Duckhunt , July 2, 2013 6:09 AM
    Did Samsung ever make a desktop?