Thursday, February 10, 2011

Marvell (NASDAQ:MRVL) CEO Says PCs Threatened More by Tablets Than Laptops Are

The sudden explosion of sales of tablets and smartphones are more a threat to the desktop computer than it is to laptops, according to Marvell (NASDAQ:MRVL) Chief Executive Officer Sehat Sutardja.

“We’re already seeing a steady decrease in the market for monster PCs as the performance of laptops has significantly increased,” Sutardja said. “This is good for the industry because desktops are typically left under the desk for five to seven years, whereas consumers replace their laptop every two to three years.”

For laptops, Sutardja sees companies producing much more powerful ones in order to differentiate what they can better do than a tablet. Those actions will result in narrowing the gap between desktop computers and laptops, concluded the CEO.

As for smartphones and tablets, he said Marvell should improve the number of chips it gets into the popular devices in 2011.

Marvell is looking to alternative segments as concerns over the slowing of PC sales are pressing the company to develop new markets for its products.

Marvell closed Wednesday at $19.87, falling $0.37, or 1.82 percent.

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