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Analyst: Windows 8 expectations have 'plummet[ed]'


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A market analyst has given a negative opinion regarding the outlook of Microsoft's upcoming Windows 8 launch. After visiting supply chain members, the analyst said there will be a lull in production.

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An analyst with Topeka Capital has said his Windows 8 expectations have "plummet[ed]" after visiting some supply chain partners for Windows OEMs.

Brian White said that while traveling Europe, he saw supply chains that were "experiencing little life ahead of the October 26 launch." Those same supply chain members said they were expecting idle factories in December, when production should still be going on following a holiday surge. White said those same supply chain partners told him things likely wouldn't pick up until the second half of 2013.

In addition to the Windows 8 pessimism, White claims supply chain partners were equally bearish, saying Intel's requirements for the small laptops have driven up hardware and manufacturing costs associated with the devices.

White's full statement is as follows:

Windows 8 Expectations Plummet and PC Trends to Remain Difficult. The sentiment around Windows 8 was overwhelmingly negative during our trip as the supply chain is experiencing little life ahead of the October 26 launch. Although October is expected to be the sweet spot for the notebook ramp for Windows 8, and further follow through is likely in November, we were warned of idle facilities in December. One of our contacts does not expect Windows 8 to be material until the second-half of 2013. Similarly, the enthusiasm around the Ultrabook ramp has also deteriorated as the cost structure remains too high under Intel's (INTC-$21.48: NR) specifications. Given these disappointments, we believe the PC industry is headed for a muted December quarter and well below the ramp expected with new products. In our coverage universe, Dell (DELL-$9.69: Buy) has the most exposure to the PC market at 50% of sales, followed by Hewlett-Packard (HPQ-$14.41: Hold) at 29%.

Recently, another analyst shared concerns about Windows 8 and Windows RT tablets, saying they were priced "way too high." More analysts should be giving their opinions on Microsoft's fortunes this week, given the upcoming launch of Windows 8.

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A market analyst has given a negative opinion regarding the outlook of Microsoft's upcoming Windows 8 launch. After visiting supply chain members, the analyst said there will be a lull in production.

And he's getting paid for this 'analysis'? :o Absolute genius. I'm sure nobody on any forum, blog or networking site has talked about this already :uhoh:

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And he's getting paid for this 'analysis'? :o Absolute genius. I'm sure nobody on any forum, blog or networking site has talked about this already :uhoh:

Has anyone of us ever took a pen and paper and went out to supply chain, drawing silly drawings on the notepad to their talk instead of words, acting weird like a horse in car race? Nah, but that guy did. As no one else other than him did that, he got a chance for being in news, for being captain obvious. :P

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In the words of the great Nash Bridges: "Bubba, you've got a flare for the obvious like I've never seen."

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In the words of the great Nash Bridges: "Bubba, you've got a flare for the obvious like I've never seen."

LOL! Now that's a blast from the past. :lol:

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