PCs and e-commerce

We see many companies that have been using their computers for more than five years.

For the last five years, the PC markets, including notebook computers, have been relatively flat, or slightly negative. Part of this is because many people are using tablets or smartphones instead. But there is another reason – more and more computers are actually being used longer. Ten years ago, big companies almost often replaced their computers once every three or four years. But right now, we see many companies thathave been using their computers for more than five years. This is also partly due the fact that most computers are relatively fast enough, and most applications have not actually grown in complexity or size that you need faster computers to do it.

But even then, the processors continue to improve, and with even more memory, Intel claimed that its 8th generation of CPUs are easily twice as fast as five-year-old computers, and up to 40 percent faster than the 7th generation CPUs introduced just two or so years ago.

These processors, which are using a smaller 14-nanometer size, will allow for longer battery life and video editing up to 15 times faster. It can also easily support integrated graphics of up to 4k resolution for up to three external displays. If you have one with SSD drives, the speed will really spoil you, and you won’t want to use a slower one again.

Meanwhile, there are other trends that are disturbing because it may soon hit us. In the last 20 years, the Philippines has been on a frenzy of building more stores and malls.

In the United States, scores of malls have closed. A report from Credit Suisse pointed out that between 20 and 25 percent of the malls in the US will close as e-commerce will pull shoppers away.

While apparel makes up 17 percent of total sales today, they predict it will go up to 35 percent by 2030. Traditional stores like Macy’s, JC Penny, and Sears have announced numerous closings. This year alone, an estimated 8,640 stores may close.

Malls started to proliferate in the United States in the 1950s as the beehive of activities. Between 1956 and 2005, an estimated 1,500 malls were built. Of these, only about 1,100 malls remain.

Will the same thing happen in the Philippines? Maybe not for a long time yet.

We don’t have that many malls per 1,000 person yet, and the malls are still a main beehive of activity, considering our lack of parks, and other social places to go. People go to malls even when they have nothing to buy – if only to bask in its air conditioning. And besides, e-commerce is still in its infancy in the Philippines.

So will it happen? Let’s see.