Component Makers Get Real on Windows 8, Say Notebook Demand Has to Pick Up 'Soon' (MSFT) (AAPL)
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Price: $433.19 -2.01%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
EPS Growth %: +109.9%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
EPS Growth %: +109.9%
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What's the real scoop on Windows 8 demand?
Yesterday, one Dell (Nasdaq: DELL) exec was bullish on corporations adapting the operating system, saying the refresh cycle would take hold at the same pace as prior Windows generations.
Microsoft (Nasdaq: MSFT), the maker of Windows 8, is obviously positive.
However, new data out of Digitimes suggests that those claims might be geared more toward building hype, rather than conveying consumer demand.
Taiwan-based component makers have said that if shipments in late October don't increase markedly, there will not be growth in demand for Windows 8-equipped notebooks for the fourth quarter, possibly leaking into the next quarter as well.
First-tier PC brand vendors have all reduced shipment forecasts for 2012, noted Digitimes. The only one not cutting expectations is Apple (Nasdaq: AAPL), which still expects robust MacBook growth of 20 percent to 30 percent, or about 15 million to 16 million unit shipments.
Should investors take the notebook outlook as a signal for the PC industry as a whole? Probably not. Microsoft's first foray into the PC market isn't even a notebook, it's the Surface line of tablets. The trend is one to watch though, with competition in portable PCs (including ultrabooks and tablets) heating up into the holiday shopping season.
Shares of Microsoft are down about 1 percent Friday while Apple is also lower on the session.
Yesterday, one Dell (Nasdaq: DELL) exec was bullish on corporations adapting the operating system, saying the refresh cycle would take hold at the same pace as prior Windows generations.
Microsoft (Nasdaq: MSFT), the maker of Windows 8, is obviously positive.
However, new data out of Digitimes suggests that those claims might be geared more toward building hype, rather than conveying consumer demand.
Taiwan-based component makers have said that if shipments in late October don't increase markedly, there will not be growth in demand for Windows 8-equipped notebooks for the fourth quarter, possibly leaking into the next quarter as well.
First-tier PC brand vendors have all reduced shipment forecasts for 2012, noted Digitimes. The only one not cutting expectations is Apple (Nasdaq: AAPL), which still expects robust MacBook growth of 20 percent to 30 percent, or about 15 million to 16 million unit shipments.
Should investors take the notebook outlook as a signal for the PC industry as a whole? Probably not. Microsoft's first foray into the PC market isn't even a notebook, it's the Surface line of tablets. The trend is one to watch though, with competition in portable PCs (including ultrabooks and tablets) heating up into the holiday shopping season.
Shares of Microsoft are down about 1 percent Friday while Apple is also lower on the session.
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