Advanced Micro Devices, Inc. (AMD), Intel Corporation (INTC): Another Major Blow to the PC

“At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market,”

Dell Inc. (NASDAQ:DELL) and HP has seen deteriorating market share due to lesser focus on declining sales and more on internal conflicts. The Chinese technology giant Lenovo has taken full advantage of Dell and Hewlett-Packard Company (NYSE:HPQ) weakness and is quickly emerging as the new PC market leader. Lenovo has effectively targeted the low price points and some exciting high end offerings as well. The company further has the advantage of being the major PC brand in China with is one of the fastest technology consumer markets in the world.

Bottom line

The PC decline is worse than everyone anticipated and Windows 8 has thus far failed to ignite any comeback. While the OS is a step towards the future there is not enough touch based interactive user-interface out there to show users the full capabilities of the OS. I believe investors should stay away from the PC industry and bet on undervalued PC stocks with diversified revenues sources. This primarily points to companies such as Intel Corporation (NASDAQ:INTC), Windows etc which have a major stake in PC but a diverse revenue source which limits their downside risk.