The era of power hungry desktop computers is quickly drawing to an end. Users are optimizing their devices for exactly what they need to do.

1. End of an
Era (WinTel)
Dr. Augustine Fou
December 4, 2012
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2. Wintel Monopoly – 3 decades
Source: Mary Meeker, KPCB, December 2012
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3. PCs versus Tablets/Mobile
Source: Mary Meeker, KPCB, December 2012
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4. Why Netbooks Failed
“Netbooks used lower powered Atom processors, but
were still burdened with the overhead of Windows,
making them practically unusable.”
- Augustine Fou
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5. Netbooks triggered the end
of the Wintel Era
• Netbooks were a bit ahead of their time, because people were
still thinking “desktops moving downstream” now we are
thinking “smartphones moving upstream” (tablets)
• Netbooks were priced in the $299 range, which forever
killed PC makers’ ability to charge more than $1,000 for
laptops or PCs.
• Netbooks still had to use PC software (hundreds of titles);
but tablets and Chromebooks use apps (hundreds of
thousands)
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6. Chromebook vs Ultrabooks
ultrabooks $2,499
$199
are
10x $2,318
$249 more
expensive $1,979
Source: Google Play Store Source: Newegg Dec 2012
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7. Mobile Processors vs Desktop
SOURCE: Phoronix
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8. User Activities on Smartphone
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9. Frequency of Activities
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10. User Activities on Tablets
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11. Top Tablet Activities
Source Google (November 30, 2011)
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12. American kids want iPad the
most, Surface the least
iPad
Surface
Source: Mary Meeker, KPCB, December 2012
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13. Why Surface Will Fail
• It is more expensive than other Android based tablets
• The app ecosystem is practically non-existent
• It uses a desktop OS, force fitted with a new “tile
interface” to be more tablet-like, but still burdened with
overhead
NPD Group – “Windows 8 gets off to a slow start”
CNet – “Windows 8 launches... and PC sales drop 21 percent.”
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14. Software to Apps
Packaged
software
100’s of titles hundreds of 1000’s of apps
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15. So What?
“Users are optimizing their devices to be
mobile and just powerful enough for them
to do the majority of things they need – e.g.
surf the web, communications, photos, etc.
They are less likely to buy desktop
computers with super powerful, energy-
hungry processors.”
- Dr. Augustine Fou
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16. Dr. Augustine Fou – Chief Digital Strategist
“I help clients leverage digital
tools and techniques to create
sustainable competitive
advantage.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
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@acfou Augustine Fou