PC shipments are in decline; so far, this is the sharpest-ever decline and much of the blame is placed on the lackluster performance of Windows 8. Microsoft launched the new operating system back in 2012 to keep up with tablets and touch-based devices; however, the outcome is not what Microsoft had hoped for.

According to the latest numbers released by the IDC, 76.3 million PCs shipped in the first quarter of 2013, which represents a 13.9 percent decline from the first quarter of 2012.

"At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market," according to Bob O'Donnell, IDC Program Vice President, Clients and Displays. "While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market."

While every major PC maker is losing ground, Lenovo seems to be the only exception as it continues to hold firm in a market that is barely going forward. This could be due to Lenovo's solid "attack" strategy that seems to be paying off in more ways than one.

"Although the reduction in shipments was not a surprise, the magnitude of the contraction is both surprising and worrisome," said David Daoud, IDC Research Director, Personal Computing. "The industry is going through a critical crossroads, and strategic choices will have to be made as to how to compete with the proliferation of alternative devices and remain relevant to the consumer. Vendors will have to revisit their organizational structures and go to market strategies, as well as their supply chain, distribution, and product portfolios in the face of shrinking demand and looming consolidation."

The bulk of the work is left on Microsoft's shoulders right now, to make Windows 8 more attractive to consumers. Contrary to the belief of some, Windows 8's lack of success has nothing to do with boring hardware design: it's the operating system, and only Microsoft can fix that problem.

Top 5 Vendors, Worldwide PC Shipments, First Quarter 2013 (Preliminary) (Units Shipments are in thousands)