Rebooting the PC industry: Tablets force a shift

The personal computer industry needs a jumpstart - and it's counting on a rescue from emerging markets and a late-to-the-party push into tablet computers.

The US and European PC markets have entered a dangerous new phase: Fewer people are buying new PCs because of economic anxiety, market saturation and the rise of seductive new gadgets such as Apple's iPad.

More signs of strain are expected as PC makers and their component suppliers begin to disclose quarterly earnings this week.

Make no mistake: The PC is still the backbone of the digital world, powering e-commerce, social networking and more.

It is a fixture in homes and businesses in industrialized countries. More than 1 million PCs are sold every day, and the industry is bigger than ever.

But worldwide sales have slowed in recent years.

Image: Xerox PARC's Alto, one of the earliest personal computers.

Text: Jordan Robertson, Associated Press

Image Courtesy: Wikimedia Commons