Smart-phones Outsell Personal Computers

Smart phones are outselling personal computers for the first time, according to a report ‎by research group IDC. Globally, consumer electronics manufacturers shipped 100.9 ‎million smart phones in the last three months of 2010, recording an 87 percent jump from ‎‎2009. PC shipments were relatively weaker being just 3 percent to 92.1 million.‎

The two trends are independent. Smart-phones and Personal Computers serve different ‎end users, and consumers generally need both. PCs are needed for writing papers, editing ‎photos and creating other content. PC sales have been hit by competition from tablet ‎computers — as from Apple’s iPad.‎

Meanwhile, smart- phones are benefiting from falling prices. Brand-new models are on ‎sale for $100, a price consumers are willing to pay. Some retailers, such as Amazon.com ‎Inc., are offering smart-phones with steep discounts.‎

Growing interest in Google’s Android software, which powers dozens of phones are also ‎getting a thrust from HTC Corp., Samsung Electronics, Motorola etc. ‎People also tend to replace their mobile phones more often than they replace their ‎computers. Consumers might wait three to five years to replace computers. Some ‎computers are protected under warranties that last several years. Meanwhile, cell phone ‎subscribers often have the option of upgrading to a newer phone well before their two-‎year service contracts expire.‎

Such incentives are becoming less common. Recently, Verizon Wireless planned to phase ‎out their early upgrade program, while Sprint Nextel Corp. is increasing their prices.‎