Sony is Getting out of the PC Business

In a surprising move Sony is exiting the PC business. Their VAIO line of computers have always stood out in a crowded PC market. With the commoditization of the PC, profit margins are extremely narrow. With the current contraction of the PC market that is likely resulting as a shift occurs to the tablet Sony probably decided the challenge of profitability was getting difficult at best.

The PC market is contracting substantially while the Mac is enjoying a bit of a Renaissance. Growth of the Mac was around 20% year over year. In a crowded PC market with significant contraction underway there is less room for profit as sales drop. Sony’s exit from the PC market might be a bit foretelling but it is also a little sad.