It's the Post-Post-PC Era! (I can do it, too! :3)
Subject: General Tech | August 6, 2014 - 06:58 PM | Scott Michaud
Tagged: best buy, tablets, convertible, laptop
Hubert Joly, CEO of Best Buy, talked with Re/code about the overall health of their company and various industry trends. The first question (at least in the order Re/code presented them) asked about the decline of the PC industry. He responded that PC sales are actually recovering, to some extent, but that Android tablets are, now, "crashing".
His view is that laptops are adopting the successful bits of the tablet market, especially as a result of various two-in-one initiatives. He believes students, in particular, appreciate tablet/laptop hybrids. This is certainly what Intel has been hoping for, through its recent Ultrabook efforts. He hopes that innovation will be done at the high end, so consumers will not simply settle for the $300-tier.
He did back off on his "crashed" statement, regarding the tablet market, however. The growth of tablets, from the start, were amazing. However, like the argument with "good enough" PCs, there does not seem to be a compelling argument for users to move to the next device, at least not yet. Like PCs, devices are being replaced, just not driven from industry forces. Also, like smartphones, the market seems to have matured, slowing in growth.
Naturally, Joly believes that Best Buy will be around for years to come. I agree with his reasoning. He acknowledges the squeeze between online resellers and boutique shops, which puts Best Buy in an awkward middle niche when the goal of a big box store is to be not niche. My interpretation of his strategy is to, instead of being crushed, strive to overlap. Embrace what the customers want on either side while doing your thing in the middle.
It is still questionable whether it will work, but it seems like the right move.