PC demand strong …


in advance of Windows 7 release.

People are snapping up new desktop and laptop PCs long before the launch of Windows 7, a sign of strong demand in the market, analysts say.

Demand for PCs improved in July and August, which is “something special, because the expectation was that many people would delay purchases until after Windows 7 came out in October,” said Manish Nigam, head of technology research in Asia for Credit Suisse, at a technology conference in Taipei.

Microsoft marketing in advance of the release may have played a role.

Consumers often wait until after the launch of a major new operating system to buy a new PC for fear of having to pay for the upgrade and to avoid the hassle of loading the new software themselves. This time, strong marketing for free or discounted Windows 7 upgrades for new PC buyers ahead of the official launch of the OS on Oct. 22 appears to have worked.

The advertising blitz for Windows 7 “will be a major positive for the PC industry,” iSuppli said.

Hype for the new OS, which won solid reviews from many people who tested it, and lower prices for PCs are already drawing buyers.

The big question – when will corporations get back into the game?

The big question mark for the PC industry is when corporations, which account for nearly 60 percent of PC shipments, will start replacing aging fleets of computers.

Executives in charge of replacing PCs are more finicky about major OS upgrades than consumers. Decisions they make about new software will affect thousands of computers that they have to maintain. Many are also mindful of how unpopular Microsoft’s last OS, Windows Vista, was. The OS launched in early 2007 to great fanfare that quickly turned to disappointment. Customers complained about a number of issues, from clunky performance to missing hardware drivers. Some people even opted to downgrade back to Windows XP.

The problems Vista faced make the transition to Windows 7 potentially slower among corporate users. Analysts expect them to wait until Windows 7 has been on the market for at least several months and Service Pack 1 has been published before adopting the new OS.

That means PC purchases by corporations probably won’t begin until the middle of next year.

Which could mean of all things a possible PC shortage and/or higher prices.

Credit Suisse’s Nigam believes U.S. corporations may lead the rebound in PC buying next year, noting capital spending hit its lowest level in years at the depths of the financial crisis, even worse than after the dotcom bust.

The investment bank forecasts a 12 percent increase in corporate PC purchases next year based on surveys with corporate IT managers. Such an increase would likely make PC vendors happy, but it could hurt consumers through potentially higher PC prices, considering the shortages already hitting some PC parts. (Source: PC demand takes off ahead of Windows 7 – The Industry Standard)

Either way this is positive news for the IT market.

Reblog this post [with Zemanta]
Advertisements

About brvanlanen

Just a thirty-something guy currently hanging it up in the greater Green Bay area. My post-high school educational background is mainly in the Information Technology field. Specifically I have an A.A.S. in Computer Network Systems and a B.S. in Information Systems Security, both from ITT Technical Institute, in addition to A and MCDST certifications. In my free time I enjoy spending time with my family, cooking and sports. My Christian faith is also important to me as a Missouri-Synod Lutheran and all my children attend a Lutheran grade school. When it comes to political leanings I am a conservative first and foremost which you will discover rather quickly. As for sports I am a huge fan of the Green Bay Packers.

Posted on September 19, 2009, in Microsoft, PC, Technology, Technology News, Windows 7 and tagged , , , , , , , . Bookmark the permalink. 1 Comment.

  1. PC demand strong … .Thanks for nice post.I added to my twitter.

%d bloggers like this: