Analysts, PC Industry Cool to Windows 8

Analysts, PC Industry Cool to Windows 8

Research  these Stocks on Kapitall’s Playground Now

 
research now

Written by Peter Svensson

NEW YORK – While Microsoft (MSFT) is touting this week’s launch of Windows 8 as the savior of the computer industry, PC makers and analysts are increasingly skeptical that the new operating system will lure consumers away from tablets and smartphones.

Even Intel Corp., which makes the processors at the heart of 80 percent of personal computers, doubts that Windows 8 will have a big impact on sales. CEO Paul Otellini said this week that he’s “very excited” about the new operating system but expects the usual holiday bounce in PC sales to be half of what it usually is. Clearly, PC makers are being cautious about building big stocks of Windows 8 PCs.

“We haven’t had a chance to really judge how consumers will embrace this in the PC space or not,” Otellini said on a conference call with reporters and analysts.

Research firm IHS iSuppli expects the industry to ship 349 million PCs this year, down 1 percent from last year’s all-time high. Although small, the decline would be the first since 2001.

In the U.S., a mature market where consumers are gobbling up tablets, PC sales have already been declining for two years. Meanwhile, Apple has been doubling sales of iPad tablets every year since the first model was introduced in 2010. In the April to June period, Apple shipped 17 million iPads, while Hewlett-Packard Co., then the world’s largest maker of PCs, shipped 13.6 million PCs, according to Gartner analysts.

Smartphones, which were a niche market before the 2007 launch of the iPhone, outsold PCs last year, even though PC sales were at a record high.

The PC market is still big, Microsoft CEO Steve Ballmer told the Seattle Times last month, “and Windows 8 will propel that volume.”

The software is a response to the popularity of tablets. It tosses out many Windows conventions in favor of a radical new look that’s designed to be easy to use on a touch screen. With Windows 8, PC makers are releasing a slew of laptops that double as tablets, either with detachable screens or with screens that fold down over the keyboard.

But Citigroup analyst Joe Yoo is even more pessimistic than Intel that Windows 8 will spur a turnaround in sales of desktop and laptop computers. It could turn out to be a “non-event” in terms of getting people to buy PCs, he said.

Microsoft did not immediately respond to a request for comment. On Thursday, the company reports results for the quarter that ended in September, and executives will likely talk about prospects for the rest of the year.

Brian White at Topeka Capital Markets said Taiwanese PC component suppliers aren’t seeing any pickup in orders ahead of the Oct. 26 launch of Windows 8.

“The sentiment around Windows 8 was overwhelmingly negative,” he said after meetings with suppliers. “We believe the PC industry is headed for a muted December quarter and well below the ramp expected with new products.”

Analyst Mary Jo Foley at UBS is “leery” of Windows 8, noting that it has an entirely new look and feel. It could either be a big success, she said, or it could confuse customers and turn them off.

stockstarsbanners640x1362jpg

19 responses to “Analysts, PC Industry Cool to Windows 8”

  1. Jorja says:

    In the April to June period, Apple shipped 17 million iPads, while Hewlett-Packard Co., then the world’s largest maker of PCs, shipped 13.6 million PCs, according to Gartner analysts best biomedical engineering schools

  2. Sheryl Johnson says:

    While it's true tablet sales have been increasing, and PCs are in somewhat of a decline, sometimes I am not sure if I want a laptop that also transforms into a tablet or if morphing the two concepts is a good idea? When I recently checked some of these new PCs and golf gps watch's out recently while on my trip to Best Buy, I thought they the yoga PCs were a tad overpriced. Yes you get a wonderful looking device made with exceptional materials, they are also lacking on storage, hard drive speed etc. compared to other laptops.

  3. Smartphones, which were a niche market before the 2007 launch of the iPhone, outsold PCs last year, even though PC sales were at a record high.

  4. rankbuilders says:

    I read your blog frequently and I just thought I’d say keep up the amazing work!
    http://magazinevropeyskiy.us/

  5. @Avery11256 says:

    Very good points you wrote here..Great stuff…I think you've made some truly interesting points.Keep up the good work.

    blog comments

  6. rankbuilders says:

    Thanks for this great post, i find it very interesting and very well thought out and put together. I look forward to reading your work in the future.flash sample sales london

  7. Serious Jack says:

    tablet sales have been increasing, and PCs are in somewhat of a decline. Cell phone sale are increasing by Quarter.

    Online Laptop Finder
    Online Notebook Finder

  8. Serious Jack says:

    tablet sales have been increasing, and PCs are in somewhat of a decline. Cell phone sale are increasing by Quarter.

    Hot Deals
    Laptop Deals
    laptop buying guide
    laptop finder
    Notebook Finder
    What is Laptop
    How to choose a Laptop
    What Laptop Should i Buy
    Which Laptop Should i Buy
    Wireless Networking

  9. rankbuilders says:

    This is my first time visit here. From the tons of comments on your articles,I guess I am not only one having all the enjoyment right here!
    SBI Clerk

  10. Zees Movie says:

    The real deal is of the background behind film poster gathering and film cards. Jules Cheret, who produced 2 film posters within the 1890is, was the performer for making the very first film posters, provided credit.

  11. roush12 says:

    Another key way to excellent web page marketing is developing ideal connections and relationships with other suitable company organizations. Through ideal connections, you really can improve overall exposure of your site function http://websitesdesignz.tumblr.com/.

  12. Chiwawa Dog says:

    Chiwawa Dogs are famous, attractive, cute little lovable. dogs popularly known as the toy breed. Here at ChwawaDog.org you will get every detailed information about the Chiwawa Dog or commonly known as Chihuahua Dog.

  13. johndd110 says:

    useful information on topics that plenty are interested on for this wonderful post.Admiring the time and effort you put into your b!..
    Demir Leather Linkedin

  14. rankbuilders says:

    I have not any word to appreciate this post…..Really i am impressed from this post….the person who create this post it was a great human..thanks for shared this with us.
    Madison SEO Company

  15. rankbuilders says:

    Good article, but it would be better if in future you can share more about this subject. Keep posting.
    the military diet

  16. Nice Post. It’s really a very good article. I noticed all your important points. Thanks

  17. sbirecruitment2018 says:

    Good information lets know every body this useful information by sharing this article SBI Recruitment 2018

Leave a Reply

Your email address will not be published. Required fields are marked *

wirebanner1jpg
  • See Most Recent Articles