The End of Hardware?

The picture isn’t pretty.

Whether it’s PCs, tablets, smart watches or now, even smartphones, the outlook for most major hardware device categories is not looking good, particularly here in the US.

The issue is that both consumers and businesses have already bought a lot of these devices. Plus, they’re hanging on to their purchases longer than they used to, and longer than many people originally thought they would.

Many companies, including both Intel and Qualcomm, have been forced to make some painful employee reductions as a result of these challenges, and there are likely more from other vendors still to come.

So, does this signal the end of hardware as we know it?

On one hand, yes, we are arguably at the peak of these key hardware categories, particularly when you add them all together. As a result, we are likely to see modest declines in unit shipments from this point forward. After a 30+-year run of growth, that’s tough news to take.

But there is hope in hardware-land. It just requires thinking about the market in a different way.[pullquote]There is hope in hardware-land. It just requires thinking about the market in a different way.[/pullquote]

The key point is to realize that the distribution of computing is getting increasingly diverse. Of course, much of it is moving to the cloud and data centers around the world. Not only is traditional CPU-based computing happening there, but increasingly, so are GPU-dependent tasks. In fact, the architecture of today’s servers is more like a super-powered PC than traditional servers have ever been.

But we aren’t moving to a cloud computing-only world. Instead we’re seeing significantly more intelligence and computing power being placed into devices outside the traditional norm. Newer cars, for example, arguably have the most raw computing power of any of the devices that people own, and that’s only going to increase over time.

We’re also seeing many more devices that previously lacked any kind of real technology being made “smart.” From smart speakers to smart machines to smart, well, everything, the range of “computing” devices is growing tremendously. Unlike the traditional core computing devices, however, these new types of devices often leverage different types of computing hardware. In fact, in many cases, it’s essentially “sensor-based” computing, where there is little traditional computing horsepower, but a great deal of data-generating sensors packaged together with wireless connectivity elements.

In addition, we’re starting to see multiple steps being integrated into the computing continuum. It’s not just about client devices talking straight to servers—in many cases there are intermediary devices, such as various types of gateways, that sit somewhere along the computing path. There are also increasing efforts to split various types of workloads and activities across the smart clients and connected servers to intelligently take advantage of all the key benefits that each has to offer.

When you add all these devices, and the components they require, together, it’s clear that there’s still plenty of opportunity to build and sell hardware. But it’s also clear that it’s a very different kind of hardware market. In addition, the companies involved are likely going to be a different blend of hardware vendors than the ones we’ve come to know.

Component and semiconductor makers that can adjust to this new reality are likely to make the transition just fine, although it’s very possible we’ll see adjustments in their size, power and influence as these market adjustments occur.

For finished goods vendors, the story is likely to be much more challenging. Several well-known names could disappear in this new environment. Many others will find themselves in a very different position than they’ve been in, and some will (and already are) making the adjustments necessary to thrive in this new hardware landscape.

Much has been written about the increasingly important role that software is playing in this new world and there’s no question that software is an essential element. However, it’s also important to remember that this dramatically different combination of hardware requires much different types of software, as well. This is not a world requiring or expected to be driven by mobile apps. Developments in artificial intelligence, deep learning, analytics algorithms and the like instead point to a more pervasive and yet more subtle type of software that more easily adapts to us rather than the other way around.

The end to the long run of traditional hardware growth is a critical milestone in the ongoing evolution of the computing industry, but it doesn’t signal the end of the hardware era. Its impact is really just starting to be felt now, but there’s no question that the reverberations from it will be felt wider, deeper and longer than most expect.

Published by

Bob O'Donnell

Bob O’Donnell is the president and chief analyst of TECHnalysis Research, LLC a technology consulting and market research firm that provides strategic consulting and market research services to the technology industry and professional financial community. You can follow him on Twitter @bobodtech.

1,239 thoughts on “The End of Hardware?”

  1. I feel I’ve already lived through that in the late 90s-early 00s on the Entreprise side, when margins on hardware went from “crazy high” (30-50%) to “iffy” (5-20%). OEMs consolidated, retailers went Services or high-volume, half of each disappeared…

    The current situation is different mainly for 2 reasons: a) Consumers are mostly not willing to pay for service and b) there’s no (semi-)benevolent tyrant à la MS that kind of organizes the equivalent of the mess of OEMs, devs, VARs, resellers, consultants, trainers… Google/Android kind of did that for smartphones, but the industry isn’t willing to follow them for the next steps (payments, IoT, Health, …) (fighting over data/tracking/ads revenue and unwilling to not differentiate I guess)

    Apart from ads, how do we get Consumers to pay for service ? Apple does it mostly by building service into device prices, and pushing/locking out competing services (financing, apps, media, payments…). Music managed to turn sales into renting, but a) people were already used to paying for music and b) pricing anomalies makes renting artificially cost-efficient. Amazon did figure it out with Prime. Would that make them a candidate to try and build a Consumer IT Services business ? Or are we going to end up paying monthly subscriptions for car IT, home IT, garden IT, health IT, kids IT, pets IT, security IT, IT IT…

    Reply

    1. “Or are we going to end up paying monthly subscriptions for car IT, home IT, garden IT, health IT, kids IT, pets IT, security IT, IT IT…”

      I believe the technology progress should work like this:
      A technology company comes up with a product or service that sequentially goes through the usual cycle – early adopters, crossing the chasm, mass market, end of life and then passed to utilities for mass utilization. That happened with telephone service, hydro. Back in time, people used to pay for roads and then gradually this payment became a part of taxation system. What is frequently going missing is a cleanup… This could have been improved if while before finished having in mind the next thing we are going to perform. This is alike clocking out the pipeline in a single-core microprocessors.

      Reply

  30. You can certainly see your skills within thework you write. The arena hopes for more passionate writerslike you who aren’t afraid to say how they believe. At all times go after your heart.asmr 0mniartist

    Reply

  34. ซีรี่ย์พากย์ไทย ซีรี่ย์ฝรั่ง พากย์ไทย Drama ภาพยนตร์ชีวิต ที่จะได้ความรู้สึกซึ้งเศร้า เคล้าน้ำตา ทำให้นึกถึงชีวิตคนจริงๆ บางเรื่องดูแล้วเครียด บางเรื่องก็เศร้ามากๆ แต่พอหนังจบก็โล่งหัว

    Reply

  41. Our call girls Islamabad know what it takes to satisfy demanding men and you are sure to enjoy their company a lot. One can look forward to some lovely hot moments in between the sheets and you can easily penetrate the anal of the girl. This is the service, which makes it special and one can look forward to a hot sensual massage from the diva. You can look forward to lovely slides on the body and even receive a lingam massage, which helps to cure erectile dysfunction. One can look forward to hot orals and even some light B&D. You are sure to enjoy life with the girl here in Islamabad.

    Reply

  92. Hey there! I just wanted to ask if you ever have any issues with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no backup. Do you have any solutions to prevent hackers?

    Reply

  96. Great goods from you, man. I’ve understand your stuff
    previous to and you are just too wonderful. I actually like what you’ve acquired here, really like
    what you’re saying and the way in which you say it. You make it enjoyable and you
    still take care of to keep it sensible. I can’t wait
    to read much more from you. This is actually a terrific website.

    Reply

  111. Unquestionably believe that which you stated. Your favorite reason appeared
    to be on the internet the easiest thing to be aware of.
    I say to you, I certainly get annoyed while people
    consider worries that they just don’t know about.
    You managed to hit the nail upon the top and defined out the whole thing without having side effect , people can take a signal.
    Will probably be back to get more. Thanks

    Reply

  114. I loved as much as you will receive carried out right here.
    The sketch is tasteful, your authored subject matter stylish.
    nonetheless, you command get got an impatience over that you wish be delivering the following.
    unwell unquestionably come more formerly again since exactly the same nearly
    very often inside case you shield this increase.

    Reply

  126. SightCare is a powerful formula that supports healthy eyes the natural way. It is specifically designed for both men and women who are suffering from poor eyesight.

    Reply

  141. GlucoTrust 75% off for sale. GlucoTrust is a dietary supplement that has been designed to support healthy blood sugar levels and promote weight loss in a natural way.

    Reply

  144. Quietum Plus is a 100% natural supplement designed to address ear ringing and other hearing issues. This formula uses only the best in class and natural ingredients to achieve desired results.

    Reply

  161. With havin so much content do you ever run into any issues
    of plagorism or copyright infringement? My website has a lot of completely unique content I’ve either
    written myself or outsourced but it seems a lot of it is popping it up all over the internet without my
    authorization. Do you know any solutions to help prevent content from being ripped off?
    I’d genuinely appreciate it.

    Reply

  187. SonoVive™ is a 100% natural hearing supplement by Sam Olsen made with powerful ingredients that help heal tinnitus problems and restore your hearing.

    Reply

  259. You’re so interesting! I do not suppose I have read through something like this before.
    So good to discover another person with original thoughts on this issue.
    Seriously.. thank you for starting this up. This website is one thing that is needed on the web,
    someone with some originality!

    Reply

  275. Boostaro increases blood flow to the reproductive organs, leading to stronger and more vibrant erections. It provides a powerful boost that can make you feel like you’ve unlocked the secret to firm erections

    Reply

  284. Neotonics is a dietary supplement that offers help in retaining glowing skin and maintaining gut health for its users. It is made of the most natural elements that mother nature can offer and also includes 500 million units of beneficial microbiome.

    Reply

  289. EyeFortin is a natural vision support formula crafted with a blend of plant-based compounds and essential minerals. It aims to enhance vision clarity, focus, and moisture balance.

    Reply

  301. Dentitox Pro is a liquid dietary solution created as a serum to support healthy gums and teeth. Dentitox Pro formula is made in the best natural way with unique, powerful botanical ingredients that can support healthy teeth.

    Reply

  309. Nervogen Pro, A Cutting-Edge Supplement Dedicated To Enhancing Nerve Health And Providing Natural Relief From Discomfort. Our Mission Is To Empower You To Lead A Life Free From The Limitations Of Nerve-Related Challenges. With A Focus On Premium Ingredients And Scientific Expertise.

    Reply

  311. HoneyBurn is a 100% natural honey mixture formula that can support both your digestive health and fat-burning mechanism. Since it is formulated using 11 natural plant ingredients, it is clinically proven to be safe and free of toxins, chemicals, or additives.

    Reply

  312. Today, I went to the beach with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

    Reply

  319. Amiclear is a dietary supplement designed to support healthy blood sugar levels and assist with glucose metabolism. It contains eight proprietary blends of ingredients that have been clinically proven to be effective.

    Reply

  320. Claritox Pro™ is a natural dietary supplement that is formulated to support brain health and promote a healthy balance system to prevent dizziness, risk injuries, and disability. This formulation is made using naturally sourced and effective ingredients that are mixed in the right way and in the right amounts to deliver effective results.

    Reply

  322. Metabo Flex is a nutritional formula that enhances metabolic flexibility by awakening the calorie-burning switch in the body. The supplement is designed to target the underlying causes of stubborn weight gain utilizing a special “miracle plant” from Cambodia that can melt fat 24/7.

    Reply

  323. TropiSlim is a unique dietary supplement designed to address specific health concerns, primarily focusing on weight management and related issues in women, particularly those over the age of 40.

    Reply

  325. Glucofort Blood Sugar Support is an all-natural dietary formula that works to support healthy blood sugar levels. It also supports glucose metabolism. According to the manufacturer, this supplement can help users keep their blood sugar levels healthy and within a normal range with herbs, vitamins, plant extracts, and other natural ingredients.

    Reply

  326. GlucoFlush Supplement is an all-new blood sugar-lowering formula. It is a dietary supplement based on the Mayan cleansing routine that consists of natural ingredients and nutrients.

    Reply

  328. While Inchagrow is marketed as a dietary supplement, it is important to note that dietary supplements are regulated by the FDA. This means that their safety and effectiveness, and there is 60 money back guarantee that Inchagrow will work for everyone.

    Reply

  329. GlucoCare is a dietary supplement designed to promote healthy blood sugar levels, manage weight, and curb unhealthy sugar absorption. It contains a natural blend of ingredients that target the root cause of unhealthy glucose levels.

    Reply

  330. Manufactured in an FDA-certified facility in the USA, EndoPump is pure, safe, and free from negative side effects. With its strict production standards and natural ingredients, EndoPump is a trusted choice for men looking to improve their sexual performance.

    Reply

  331. Gorilla Flow is a non-toxic supplement that was developed by experts to boost prostate health for men. It’s a blend of all-natural nutrients, including Pumpkin Seed Extract Stinging Nettle Extract, Gorilla Cherry and Saw Palmetto, Boron, and Lycopene.

    Reply

  332. Nervogen Pro is a cutting-edge dietary supplement that takes a holistic approach to nerve health. It is meticulously crafted with a precise selection of natural ingredients known for their beneficial effects on the nervous system. By addressing the root causes of nerve discomfort, Nervogen Pro aims to provide lasting relief and support for overall nerve function.

    Reply

  333. SonoVive is an all-natural supplement made to address the root cause of tinnitus and other inflammatory effects on the brain and promises to reduce tinnitus, improve hearing, and provide peace of mind. SonoVive is is a scientifically verified 10-second hack that allows users to hear crystal-clear at maximum volume. The 100% natural mix recipe improves the ear-brain link with eight natural ingredients. The treatment consists of easy-to-use pills that can be added to one’s daily routine to improve hearing health, reduce tinnitus, and maintain a sharp mind and razor-sharp focus.

    Reply

  334. Introducing FlowForce Max, a solution designed with a single purpose: to provide men with an affordable and safe way to address BPH and other prostate concerns. Unlike many costly supplements or those with risky stimulants, we’ve crafted FlowForce Max with your well-being in mind. Don’t compromise your health or budget – choose FlowForce Max for effective prostate support today!

    Reply

  337. TerraCalm is an antifungal mineral clay that may support the health of your toenails. It is for those who struggle with brittle, weak, and discoloured nails. It has a unique blend of natural ingredients that may work to nourish and strengthen your toenails.

    Reply

  349. I was wondering if you ever considered changing the
    page layout of your blog? Its very well written; I
    love what youve got to say. But maybe you could a
    little more in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having 1 or 2 pictures.
    Maybe you could space it out better?

    Reply

  354. Amazing blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple adjustements
    would really make my blog shine. Please let me know where you got
    your theme. Cheers

    Reply

  363. Cortexi is an effective hearing health support formula that has gained positive user feedback for its ability to improve hearing ability and memory. This supplement contains natural ingredients and has undergone evaluation to ensure its efficacy and safety. Manufactured in an FDA-registered and GMP-certified facility, Cortexi promotes healthy hearing, enhances mental acuity, and sharpens memory.

    Reply

  368. Sight Care is a daily supplement proven in clinical trials and conclusive science to improve vision by nourishing the body from within. The Sight Care formula claims to reverse issues in eyesight, and every ingredient is completely natural.

    Reply

  369. Sight Care is a daily supplement proven in clinical trials and conclusive science to improve vision by nourishing the body from within. The Sight Care formula claims to reverse issues in eyesight, and every ingredient is completely natural.

    Reply

  371. FitSpresso stands out as a remarkable dietary supplement designed to facilitate effective weight loss. Its unique blend incorporates a selection of natural elements including green tea extract, milk thistle, and other components with presumed weight loss benefits.

    Reply

  372. GlucoBerry is one of the biggest all-natural dietary and biggest scientific breakthrough formulas ever in the health industry today. This is all because of its amazing high-quality cutting-edge formula that helps treat high blood sugar levels very naturally and effectively.

    Reply

  373. Kerassentials are natural skin care products with ingredients such as vitamins and plants that help support good health and prevent the appearance of aging skin. They’re also 100% natural and safe to use. The manufacturer states that the product has no negative side effects and is safe to take on a daily basis.

    Reply

  375. Neotonics is an essential probiotic supplement that works to support the microbiome in the gut and also works as an anti-aging formula. The formula targets the cause of the aging of the skin.

    Reply

  376. Puravive introduced an innovative approach to weight loss and management that set it apart from other supplements. It enhances the production and storage of brown fat in the body, a stark contrast to the unhealthy white fat that contributes to obesity.

    Reply

  377. The Quietum Plus supplement promotes healthy ears, enables clearer hearing, and combats tinnitus by utilizing only the purest natural ingredients. Supplements are widely used for various reasons, including boosting energy, lowering blood pressure, and boosting metabolism.

    Reply

  379. Prostadine is a dietary supplement meticulously formulated to support prostate health, enhance bladder function, and promote overall urinary system well-being. Crafted from a blend of entirely natural ingredients, Prostadine draws upon a recent groundbreaking discovery by Harvard scientists.

    Reply

  380. Erec Prime is a cutting-edge male enhancement formula with high quality raw ingredients designed to enhance erection quality and duration, providing increased stamina and a heightened libido.

    Reply

  381. With its all-natural ingredients and impressive results, Aizen Power supplement is quickly becoming a popular choice for anyone looking for an effective solution for improve sexual health with this revolutionary treatment.

    Reply

  382. t’s Time To Say Goodbye To All Your Bedroom Troubles And Enjoy The Ultimate Satisfaction And Give Her The Leg-shaking Orgasms. The Endopeak Is Your True Partner To Build Those Monster Powers In Your Manhood You Ever Craved For..

    Reply

  383. Claritox Pro™ is a natural dietary supplement that is formulated to support brain health and promote a healthy balance system to prevent dizziness, risk injuries, and disability. This formulation is made using naturally sourced and effective ingredients that are mixed in the right way and in the right amounts to deliver effective results.

    Reply

  384. Nervogen Pro, A Cutting-Edge Supplement Dedicated To Enhancing Nerve Health And Providing Natural Relief From Discomfort. Our Mission Is To Empower You To Lead A Life Free From The Limitations Of Nerve-Related Challenges. With A Focus On Premium Ingredients And Scientific Expertise.

    Reply

  386. InchaGrow is an advanced male enhancement supplement. Discover the natural way to boost your sexual health. Increase desire, improve erections, and experience more intense orgasms.

    Reply

  432. Can I just say what a relief to find somebody that really understands what they’re
    discussing on the web. You actually know how to bring an issue
    to light and make it important. More and more people
    really need to check this out and understand this side of
    the story. I was surprised you aren’t more popular since you surely have the gift.

    Reply

  434. Excellent blog here! Also your site loads up very fast! What host are you using?
    Can I get your affiliate link to your host? I wish my web site loaded up as
    fast as yours lol

    Reply

  458. I gave cbd gummy for sleeping a prove payment the first habits, and I’m amazed! They tasted smashing and provided a be under the impression that of calmness and relaxation. My emphasis melted away, and I slept less ill too. These gummies are a game-changer an eye to me, and I greatly endorse them to anyone seeking unconstrained emphasis relief and better sleep.

    Reply

  570. I just wanted to take a moment to say how much I appreciate your blog posts. They’re always well-written, informative, and keep me coming back for more. Keep up the great work!

    Reply

  597. With havin so much content do you ever run into any problems of plagorism or copyright infringement?
    My website has a lot of exclusive content I’ve either written myself or outsourced but it seems a lot of it is popping
    it up all over the internet without my authorization. Do you know any solutions to help reduce content from being stolen? I’d genuinely appreciate
    it.

    Reply

  617. May I simply just say what a comfort to discover an individual
    who really understands what they are talking about on the internet.
    You certainly realize how to bring a problem to light
    and make it important. More people ought to look at this and understand
    this side of your story. I was surprised that you are not more popular given that you surely have the
    gift.

    Reply

  640. Hey there, I think your blog might be having browser compatibility issues.
    When I look at your blog site in Safari, it looks fine but when opening in Internet Explorer,
    it has some overlapping. I just wanted to give you a quick heads up!
    Other then that, terrific blog! I saw similar here: %random_link% and also
    here: %random_link%

    Reply

  677. Sugar Defender stands as a beacon of natural, side-effect-free blood sugar support. Crafted from a blend of pure, plant-based ingredients, this formula not only helps regulate blood sugar levels but also empowers you on your journey to weight loss, increased vitality, and overall life improvement.

    Reply

  684. An impressive share! I have just forwarded this
    onto a friend who had been conducting a little research on this.
    And he in fact bought me breakfast because I discovered it for him…
    lol. So allow me to reword this…. Thanks for the meal!!
    But yeah, thanks for spending some time to talk
    about this matter here on your web page.

    Reply

  705. Sumatra Slim Belly Tonic is a unique weight loss supplement that sets itself apart from others in the market. Unlike other supplements that rely on caffeine and stimulants to boost energy levels, Sumatra Slim Belly Tonic takes a different approach. It utilizes a blend of eight natural ingredients to address the root causes of weight gain. By targeting inflammation and improving sleep quality, Sumatra Slim Belly Tonic provides a holistic solution to weight loss. These natural ingredients not only support healthy inflammation but also promote better sleep, which are crucial factors in achieving weight loss goals. By addressing these underlying issues, Sumatra Slim Belly Tonic helps individuals achieve sustainable weight loss results.

    Reply

  706. The ability of Alpilean to target both subcutaneous and visceral fat distinguishes it from other weight loss products. Subcutaneous fat is visible beneath the skin, whereas visceral fat is harmful fat that accumulates around the organs, increasing the risk of heart disease and other health problems. Alpilean ensures that you not only look better, but also feel better by attacking both types of fat.

    Reply

  714. Fluxactive Complete’s formulation contains only organic ingredients that have been shown to improve prostate health. These ingredients work together to provide your body with the nutrients it requires. Your overall health improves once your body receives a healthy dose of these nutrients.

    Reply

  723. Howdy! Someone in my Myspace group shared this website with us so
    I came to give it a look. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers!
    Great blog and fantastic design and style.!

    Reply

  767. Sugar Defender introduces a meticulously curated ensemble of eight key ingredients, each strategically selected to champion healthy blood sugar levels and facilitate weight loss. These ingredients collaborate to enhance the supplement’s effectiveness through diverse mechanisms, including energy elevation, fat burning, and metabolism stimulation, all while providing direct support for maintaining healthy blood glucose levels. Here is an insightful overview of each ingredient along with its purported functionality according to the manufacturer:

    Reply

  780. Sugar Defender orchestrates a reduction in blood sugar levels through multifaceted pathways. Its initial impact revolves around enhancing insulin sensitivity, optimizing the body’s efficient use of insulin, ultimately leading to a decrease in blood sugar levels. This proactive strategy works to prevent the storage of glucose as fat, mitigating the risk of developing type 2 diabetes.

    Reply

  782. Sugar Defender stands as a beacon of natural, side-effect-free blood sugar support. Crafted from a blend of pure, plant-based ingredients, this formula not only helps regulate blood sugar levels but also empowers you on your journey to weight loss, increased vitality, and overall life improvement.

    Reply

  936. naturally like your web-site but you have to take a look at the spelling on several of your posts. Many of them are rife with spelling problems and I in finding it very bothersome to tell the truth then again I?ll definitely come again again.

    Reply

  1011. Hey there! Do you know if they make any plugins to assist with
    SEO? I’m trying to get my blog to rank for some targeted keywords but I’m
    not seeing very good gains. If you know of
    any please share. Kudos! You can read similar article here: Najlepszy sklep

    Reply

  1134. casino online uy tin [url=https://casinvietnam.com/#]casino tr?c tuy?n[/url] casino tr?c tuy?n vi?t nam

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *