PC Industry Fights to Adapt as Tablets Muscle In

Like the mainframe, which was said to be dead decades ago but has remained a meaningful business, the PC will almost certainly cheat death. True, mobile devices like the iPad will continue to gore PC sales. Those mobile devices, though, will most likely never satisfy spreadsheet masters, film editors and other workers who depend on multiple screens and the precision of a keyboard and mouse.

Still, there is a strong view among many longtime tech executives that the PC’s relevance will steadily diminish.

“In my humble opinion, the PC as we have known it is in a continuous decline and being relegated to a utility device for businesses,” said Hector Ruiz, the former chief executive of Advanced Micro Devices, a company that makes chips for PCs and other devices.

The mood around the PC industry has become increasingly glum. The business is effectively in a recession, and there is no upturn in sight. During the second quarter of the year, global PC shipments fell around 11 percent, for their fifth consecutive quarter of declines, the worst downturn since the advent of the PC more than 30 years ago.

Intel, supplier of the chips in most PCs, and Microsoft, which makes the Windows operating system on the vast majority of those machines, have delivered disappointing financial results. An overhaul of Microsoft’s software, Windows 8, did not lift sales and may have made them worse.

The once-mighty Dell, deeply weakened by the PC slump, is mired in a struggle with shareholders over a plan to go private, seeking relief from investor pressure. In their bid to take the company private, Michael S. Dell, the founder, and the investment firm Silver Lake have argued that they would turn the company into a corporate software services provider. A vote on Dell’s future is expected this week.

While sales of PCs to businesses remain steady, demand among consumers has plunged, largely because people are instead buying iPads, Kindle Fires and other tablets.

Still, a reality check: more than 300 million PCs are expected to be shipped this year globally. That is a lot of widgets for a business that has caught a cold.

Tablet sales are growing explosively. This year, there are expected to be more than 200 million shipments of the devices, which will for the first time exceed shipments of notebooks, the largest category of PCs, estimates Gartner, the research firm.

Steven P. Jobs, the Apple chief executive who died in 2011, predicted several years ago that PCs would become something like trucks, workhorses used by many people but outnumbered by tablets, the cars of the technology business. (The analogy is somewhat undercut by stats: the most popular vehicle in the United States for several years has been a truck, the Ford F-150.)

One theory is that tablets are leading PC shoppers to postpone purchases of new computers, perhaps by a year or two, but that eventually people will be ready for a fresh machine. “Replacement cycles are being pushed out,” said Toni Sacconaghi, an analyst at Bernstein Research.

A more pessimistic view is that a lot of the consumer demand for PCs will never return. Daniel Huttenlocher, the dean and vice provost of Cornell University’s new New York City technology campus, said consumers began buying PCs in big numbers beginning in the 1990s largely because no better device existed for getting on the Internet.

But the PC, he said, was always better suited as an office machine for the production of documents, presentations and other work. In his view, tablets are better for the consumption of content, whether that is watching Netflix or surfing the Web.

“There are way more consumers than producers, period, even in a world with lots of user-generated content,” Dr. Huttenlocher said.

In the first quarter, 53 percent of computer shipments were to the consumer market while 47 percent were to the commercial market, estimates the research firm IDC.

Colleges Adapt Online Courses to Ease Burden

Katie Kormanik preparing to record a statistics course at Udacity, an online classroom instruction provider in Mountain View, Calif.

SAN JOSE, Calif. — Dazzled by the potential of free online college classes, educators are now turning to the gritty task of harnessing online materials to meet the toughest challenges in American higher education: giving more students access to college, and helping them graduate on time.

This is the third article in a series that examines free online college-level classes and how they are transforming higher education.

Previous Articles in the Series:

Sebastian Thrun, a research professor at Stanford, is Udacity’s chief executive officer.

Nearly half of all undergraduates in the United States arrive on campus needing remedial work before they can begin regular credit-bearing classes. That early detour can be costly, leading many to drop out, often in heavy debt and with diminished prospects of finding a job.

Meanwhile, shrinking state budgets have taken a heavy toll at public institutions, reducing the number of seats available in classes students must take to graduate. In California alone, higher education cuts have left hundreds of thousands of college students without access to classes they need.

To address both problems and keep students on track to graduation, universities are beginning to experiment with adding the new “massive open online courses,” created to deliver elite college instruction to anyone with an Internet connection, to their offerings.

While the courses, known as MOOCs, have enrolled millions of students around the world, most who enroll never start a single assignment, and very few complete the courses. So to reach students who are not ready for college-level work, or struggling with introductory courses, universities are beginning to add extra supports to the online materials, in hopes of improving success rates.

Here at San Jose State, for example, two pilot programs weave material from the online classes into the instructional mix and allow students to earn credit for them.

“We’re in Silicon Valley, we breathe that entrepreneurial air, so it makes sense that we are the first university to try this,” said Mohammad Qayoumi, the university’s president. “In academia, people are scared to fail, but we know that innovation always comes with the possibility of failure. And if it doesn’t work the first time, we’ll figure out what went wrong and do better.”

In one pilot program, the university is working with Udacity, a company co-founded by a Stanford professor, to see whether round-the-clock online mentors, hired and trained by the company, can help more students make their way through three fully online basic math courses.

The tiny for-credit pilot courses, open to both San Jose State students and local high school and community college students, began in January, so it is too early to draw any conclusions. But early signs are promising, so this summer, Udacity and San Jose State are expanding those classes to 1,000 students, and adding new courses in psychology and computer programming, with tuition of only $150 a course.

San Jose State has already achieved remarkable results with online materials from edX, a nonprofit online provider, in its circuits course, a longstanding hurdle for would-be engineers. Usually, two of every five students earn a grade below C and must retake the course or change career plans. So last spring, Ellen Junn, the provost, visited Anant Agarwal, an M.I.T. professor who taught a free online version of the circuits class, to ask whether San Jose State could become a living lab for his course, the first offering from edX, an online collaboration of Harvard and the Massachusetts Institute of Technology.

Ms. Junn hoped that blending M.I.T.'s online materials with live classroom sessions might help more students succeed. Dr. Agarwal, the president of edX, agreed enthusiastically, and without any formal agreement or exchange of money, he arranged for San Jose State to offer the blended class last fall.

The results were striking: 91 percent of those in the blended section passed, compared with 59 percent in the traditional class.

“We’re engineers, and we check our results, but if this semester is similar, we will not have the traditional version next year,” said Khosrow Ghadiri, who teaches the blended class. “It would be educational malpractice.”

It is hard to say, though, how much the improved results come from the edX online materials, and how much from the shift to classroom sessions focusing on small group projects, rather than lectures.

Finding better ways to move students through the start of college is crucial, said Josh Jarrett, a higher education officer at the Bill and Melinda Gates Foundation, which in the past year has given grants to develop massive open online courses for basic and remedial courses.

This article has been revised to reflect the following correction:

Correction: April 30, 2013

An earlier version of this article misstated the institution from which Rachel Meltzer, an online mentor, graduated. It was Washington University in St. Louis, not Stanford (where Ms. Meltzer worked a clinical research manager). And an earlier version of this correction misidentified her employer. It is Udacity, not Coursera.

As Shoppers Hop From Tablet to PC to Phone, Retailers Try to Adapt

“I do use the iPad to browse sites,” Mr. O’Neil said, but when it comes time to close the deal, he finds it easier to do on a computer.

Many online retailers had visions of holiday shoppers lounging beneath the Christmas tree with their mobile devices in hand, making purchases. The size of the average order on tablets, particularly iPads, tends to be bigger than on PCs. So retailers poured money and marketing into mobile Web sites and apps with rich images and, they thought, easy checkout.

But while visits to e-commerce sites and apps on tablets and phones have nearly doubled since last year, consumers like Mr. O’Neil are more frequently using multiple devices to shop. In many cases, they are more comfortable making the final purchase on a computer, with its bigger screen and keyboard. So retailers are trying to figure out how to appeal to a shopper who may use a cellphone to research products, a tablet to browse the options and a computer to buy.

“I’ve been yelling at customers for two years, saying, ‘Mobile, mobile, mobile,’ ” said Jason Spero, director of mobile sales and strategy at Google. “But the funny thing is, now we’re going to say: ‘Don’t put mobile in a silo. It’s also about the desktop.’ ”

The challenges are daunting, though. It is technically difficult to track consumers as they hop from phone to computer to tablet and back again. This means customers who, say, fill shopping carts on their tablets have to do all the work again on their PCs or other devices. The biggest obstacle, retailers say, is that the tools used to track shoppers on computers — cookies, or bundles of data stored in Web browsers — don’t transfer across devices.

Instead, retailers are figuring out how to sync the experience in other ways, like prompting shoppers to log in on each device. And being able to track people across devices gives retailers more insight into how they shop.

The retailers’ efforts are backed by research. While one-quarter of the visits to e-commerce sites occur on mobile devices, only around 15 percent of purchases do, according to data from I.B.M. According to Google, 85 percent of online shoppers start searching on one device — most often a mobile phone — and make a purchase on another.

At eBags, customers are shopping on their tablets in the evening and returning on their work computers the next day. But eBags has not yet synced the shoppers across devices, so customers must build their shopping carts from scratch if they switch devices.

“That is a blind spot with a lot of sites,” said Peter Cobb, co-founder of eBags. “It is a requirement moving forward.”

At eBay, one-third of the purchases involve mobile devices at some point, even if the final purchase is made on a computer.

At eBay, once shoppers log in on a device, they do not need to log in again. Their information, like shipping and credit card details and saved items, syncs across all their devices. If an eBay shopper is interested in a certain handbag, and saves that search on a computer, eBay will send alerts to her cellphone when a new handbag arrives or an auction is about to end.

“They might discover an item on a phone or tablet, do a saved-search push alert later on some other screen and eventually close on the Web site,” said Steve Yankovich, who runs eBay Mobile. “People are buying and shopping and consuming potentially every waking moment of the day.”

ModCloth, an e-commerce site for women’s clothes, said that while a quarter of its visits come from mobile devices, people are not yet buying there in the same proportion, though they are becoming more comfortable with checking out on those devices.

“She’s visiting us more on the phone, but she’s actually transacting somewhere else,” said Sarah Rose, vice president of product at ModCloth.

For example, a shopper will skim through new arrivals on her phone while on the bus and add items to her wish list, then visit that evening on her tablet to make a purchase, Ms. Rose said.