For PCs, a new lease on life.

There are some interesting results being reported so far this year in the world of “screens.” While smartphones and tablets have seen lackluster growth — even a plateauing or a decline of sales — PCs have charted their strongest growth in years.

As veteran technology reporter Dan Gallagher notes in a story published recently in The Wall Street Journal, “PCs have turned out to be a surprising bright spot in tech’s universe of late.”

In fact, Microsoft and Intel Corporation have been the brightest stars among the large-cap tech firms so far this year. Intel’s PC chip division’s sales are up ~16% year-over-year and now exceed $10 billion.

The division of Microsoft that includes licensing from its Windows® operating system plus sales of computer devices reports revenues up ~15% as well, nearing $11 billion.

The robust performance of PCs is a turnaround from the past five years or so. PC sales actually declined after 2011, which was the year when PC unit sales had achieved their highest-ever figure (~367 million).  Even now, PC unit sales are down by roughly 30% from that peak figure.

But after experiencing notable growth at the expense of PCs, tablet devices such as Apple’s iPad and various Android products have proven to be unreservedly solid replacements for PCs only at the bottom end of the scale — for people who use them mainly for tasks like media consumption and managing e-mail.

For other users — including most of the corporate world that runs on Windows® — tablets and smartphones can’t replace a PC for numerous tasks.

But what’s also contributing to the return of robust PC sales are so-called “ultra-mobile” devices — thin, lightweight laptops that provide the convenience of tablets with all of the functionality of a PC.  Those top-of-the-line models are growing at double-digit rates and are expected to continue to outstrip rates of growth in other screen segments including smartphones, tablets, and conventional-design PCs.

On top of this, the continuing adoption of Windows 10 by companies who will soon be facing the end of extended support by Microsoft for the Windows 7 platform (happening in early 2020) promises to contribute to heightened PC sales in 2019 and 2020 as well.

All of this good news is being reflected in the share prices of Intel and Microsoft stock; those shares have gone up following their most recent earnings reports, whereas all of the other biggies in the information tech sector — including Alphabet, Amazon, Apple, Facebook, IBM, Netflix and Texas Instruments — are down.

It’s interesting how these things ebb and flow …

Grand Funk: PC Sales are in the Doldrums

PC sales decline in 2012
Eyebrow-rasing stat: Worldwide PC shipments declined in 2012 … the first drop since 2001.

If people had any doubts about the inexorable rise of tablet devices and smartphones, the sales results for the holiday season would surey erase them.

In fact, for the first time in five years, holiday PC sales have actually declined. Tech industry tracking firm IDC reports that personal computer manufacturers sold just shy of 90 million units worldwide during the last quarter of 2012. That’s down more than 6% compared to PCs sold in the final quarter of 2011.

What makes the news doubly troubling for the PC segment is that, unlike in 2009 when sales of all tech devices were hammered by a worldwide recession, this time around sales of other devices such as tablets and smartphones have grown substantially.

And considering 2012 as a whole, the news is even worse. The estimated 352 million PCs sold were ~3% lower than in 2011, which makes this the first annual decline in more than a decade – since 2001 in fact, when the 9/11 attacks roiled markets and impacted sales of all goods across the board.

And it isn’t trouble for just one manufacturer, either: The 2012 sales drop hit all of the big players including Dell, HP and Lenovo.

What about the prognosis for 2013?

It’s not much better. IDC is forecasting mediocre growth in the PC segment (less than 3%) — although at least that isn’t a decline.

But on the downside, it’s very possible that tablets will actually outsell PCs in 2013 – a possibility that would have seemed unthinkable just one or two years ago.

We’re hearing a number of explanations for the slump in PC sales. One of those is that Microsoft’s new Windows 8 operating system isn’t doing much to excite buyers – at least not so far.  The surge in new PC hardware purchases, which commonly occurrs when newer versions of Windows have been introduced, hasn’t happen this time around.

More fundamental than the Windows 8 conversion rate are signs that PCs are losing their edge over other devices in the perception that they’re the most secure, reliable and efficient options.

This shift may be less about PCs themselves or their quality, and more about the aggressiveness by folks like Apple iPad and their incursions into the PC “space.”