These initiatives are designed to make the PC radically simpler by adding new technologies and eliminating a number of legacy technologies, including some that have been around since the first open-architecture IBM PC was released in 1981. Proponents claim these initiatives will also make PCs smaller, less expensive, and more reliable. For example, Rob Enderle, analyst for the Giga Information Group, a market research firm, said the consumer and corporate markets have expressed dissatisfaction with Intel and Microsoft and appear willing to move to other technologies, such as information appliances. Further, some corporate IT managers have expressed concern that PC simplifications will be adopted too quickly, forcing their staffs to experience expensive implementation and maintenance headaches while adapting to the new machines. Nonetheless, most major vendors are planning to release simplified PCs next year.
Several factors are behind the push for simplified PCs.
One of the leading reasons is a decline in PC market growth rates, due to a saturated market for technically aware users, Enderle explained. According to Dataquest, a market research firm, about 55 percent of the US s 101 million households have PCs. Dataquest expects that portion to increase slowly to only 65.4 percent in 2002. Another factor driving simplicity is that PC vendors profit margins have been shrinking as they have drastically dropped prices on low-end products in an effort to gain market share, explained Charles Smulders, primary analyst at Dataquest. For example, Apple has had great success with the iMac s distinctive design and ease of use.