Gartner cuts 2011 PC forecast; Microsoft considering own-brand Windows 8 tablet
Gartner lowered its forecast Wednesday for global PC growth in 2011 as demand for netbooks continues to slump and Apple's iPad causes disruption, while Microsoft is reportedly considering launching its own brand of Windows 8 tablet PCs next year.
Gartner forecast
Research group Gartner indicated that it expects global PC shipments to grow 9.3 percent this year to 385 million units, down from its previous forecast of 10.5 percent, the Associated Foreign Press reports. Gartner had arrived at the 10.5 percent number in March after lowering its forecast from 15.9 percent growth in 2011.
"Consumer mobile PCs are no longer driving growth, because of sharply declining consumer interest in mini-notebooks," Gartner research director Ranjit Atwal said in a statement.
Atwal also sees the iPad as affecting sales, though he believes consumers are merely using the iPad to put off new PC purchases, rather than fully replace them. "Media tablets, such as the iPad, have also impacted mobile growth, but more because they have caused consumers to delay new mobile PC purchases rather than directly replacing aging mobile PCs with media tablets," he said. "We believe direct substitution of media tablets for mobile PCs will be minimal."
Gartner sees businesses as driving PC growth this year, as consumers appear to be "maintaining a tight rein on their spending" because of economic uncertainty. "Businesses sharply reduced replacements and extended PC lifetimes in response to the recession," said research analyst Raphael Vasquez. "Businesses have begun replacing aging PCs more vigorously."
Microsoft tablets
A new rumor suggests that Microsoft is looking into launching an own-brand tablet PC by the end of 2012, according to sources from the upstream supply chain.
In response to threats from Apple's continued growth with the iPhone, iPad and Macs, as well as Google's entry into the operating system market, "Microsoft plans to copy its branding strategy from product lines such as Xbox 360, Zune, Kin smartphone and TV, to compete in the tablet PC segment," DigiTimes reports.
The only Microsoft-branded product line that has seen success, however, is the Xbox 360. The Zune media player, the company's own-brand TVs and especially the Kin smartphone have all performed below expectations. Regardless, Microsoft is "still considering to launch an own-brand tablet PC and is proceeding on a low profile," sources said.
Sources also added that Microsoft would likely continue its plans for an Integrated Development Program alongside development of an own-brand tablet PC. Microsoft reportedly postponed the IDP, which places tight restrictions on chip vendors and OEMs building Windows 8 devices, after vendors expressed outrage at the restrictions.
Gartner forecast
Research group Gartner indicated that it expects global PC shipments to grow 9.3 percent this year to 385 million units, down from its previous forecast of 10.5 percent, the Associated Foreign Press reports. Gartner had arrived at the 10.5 percent number in March after lowering its forecast from 15.9 percent growth in 2011.
"Consumer mobile PCs are no longer driving growth, because of sharply declining consumer interest in mini-notebooks," Gartner research director Ranjit Atwal said in a statement.
Atwal also sees the iPad as affecting sales, though he believes consumers are merely using the iPad to put off new PC purchases, rather than fully replace them. "Media tablets, such as the iPad, have also impacted mobile growth, but more because they have caused consumers to delay new mobile PC purchases rather than directly replacing aging mobile PCs with media tablets," he said. "We believe direct substitution of media tablets for mobile PCs will be minimal."
Gartner sees businesses as driving PC growth this year, as consumers appear to be "maintaining a tight rein on their spending" because of economic uncertainty. "Businesses sharply reduced replacements and extended PC lifetimes in response to the recession," said research analyst Raphael Vasquez. "Businesses have begun replacing aging PCs more vigorously."
Microsoft tablets
A new rumor suggests that Microsoft is looking into launching an own-brand tablet PC by the end of 2012, according to sources from the upstream supply chain.
In response to threats from Apple's continued growth with the iPhone, iPad and Macs, as well as Google's entry into the operating system market, "Microsoft plans to copy its branding strategy from product lines such as Xbox 360, Zune, Kin smartphone and TV, to compete in the tablet PC segment," DigiTimes reports.
The only Microsoft-branded product line that has seen success, however, is the Xbox 360. The Zune media player, the company's own-brand TVs and especially the Kin smartphone have all performed below expectations. Regardless, Microsoft is "still considering to launch an own-brand tablet PC and is proceeding on a low profile," sources said.
Sources also added that Microsoft would likely continue its plans for an Integrated Development Program alongside development of an own-brand tablet PC. Microsoft reportedly postponed the IDP, which places tight restrictions on chip vendors and OEMs building Windows 8 devices, after vendors expressed outrage at the restrictions.
Comments
BY THE END OF NEXT YEAR? The world has now been subjected to a new stratum of vaporware speculation and rumors! V-A-P-O-R-W-A-R-E rules! This is Potemkin Villages on steroids! Everyone, grab your pitchforks and torches and short AAPL, for MSFT has once again promised us the moon and the stars in our pockets. Holding my breath now for the NEW AND IMPROVED COURIER . . . .
1 - Calling iPads (or other similar tablets) "media tablets" shows ignorance and undermines the analysis.
2 - Oh Microsoft, you seem so lost these days. After so many failed initiatives and launches why would you approach this in a low key fashion. If you are going for your own brand tablet do it big. Wow the world. If not then don't bother. Save yourself the trouble and pain.
Meanwhile, I definitely see the ?delayed purchase? happening. People make do with their old PC, not getting a new one because they?re using the iPad instead. Eventually, they?ll probably get a new PC. But they?ll keep them longer and buy them less often. That ?delay,? then, really IS fewer PC sales total.
And an iPad can (and does) already replace a second computer for many people. Or a third computer, or a computer for someone else in the same household. That?s lost PC sales too.
I know people who have never owned a computer because they?ve shared their roommates? or families? machines. Eventually they?d have gotten one... except now, I think they may not! They love the iPad and the iPad is cheap AND good (a rare combination).
I don't doubt they could handle it but why would they want to. MS would loose so much money if they start making their own pcs.
Although in ms's defense the kinect is truly an undoubted success.
Why the iPad and the acceptance explosion. It is intuitive, simple to use, it's fast, gorgeous screen ... it simply works and works well for the above functions ... I'll bet most people aren't much different. Customization (a la Geek land) who cares? Jail break ... who cares?
Now with the rapid improvements coming in upgraded OS from Apple, the rest of the industry is scrambling.
Now with wireless setup on the horizon ... iMessaging, and the many new functions underdevelopment ... Microsoft, et al had better wake up and not just criticize. Apple is on a big roll, is growing and innovating rapidly. They're doing it.
Besides the software licensing model, has Microsoft ever been the first to market with anything, rather than copying?
I'm going to say...yyyyyno
I would advise Microsoft to come out with a brown ZunePad, it can't fail.
Somebody buy the domain, quick!
Last week I would have agreed, that very few people would get an iPad instead of a computer. Come this fall, though, that will start to happen more and more!
Meanwhile, I definitely see the “delayed purchase” happening. People make do with their old PC, not getting a new one because they’re using the iPad instead. Eventually, they’ll probably get a new PC. But they’ll keep them longer and buy them less often. That “delay,” then, really IS fewer PC sales total.
And an iPad can (and does) already replace a second computer for many people. Or a third computer, or a computer for someone else in the same household. That’s lost PC sales too.
I know people who have never owned a computer because they’ve shared their roommates’ or families’ machines. Eventually they’d have gotten one... except now, I think they may not! They love the iPad and the iPad is cheap AND good (a rare combination).
Totally agree, I have a 5 year old laptop and bought an iPad instead of buying a new one. I use my laptop for college related stuff, and I will buy one in 1-3 years. But the iPad 2 delayed my buy from 6 months ago to 2 years from now
The only Microsoft-branded product line that has seen success, however, is the Xbox 360.
I don't know if this is splitting hairs... but, if we exclude software (obviously), hasn't the Microsoft Natural Keyboard, and the Intellimouse (Microsoft Mouse) both been successful "product lines" (at least initially)? I think I'd say their successes have been stretched out almost to the breaking point, but they're still there.
~ CB
A new rumor suggests that Microsoft is looking into launching an own-brand tablet PC by the end of 2012, according to sources from the upstream supply chain.
Sources also added that Microsoft would likely continue its plans for an Integrated Development Program alongside development of an own-brand tablet PC.
Not such a bad idea if it's more like a reference design that Microsoft sell, kind of like the way Google uses the Nexus S.
The still need to allow OEM's to adapt and customize though, as long as the IDP keeps it under control and guarantees the UX.
I'm sure the DoJ antitrust oversight that ended in May previously prevented Microsoft from doing stuff like this, among other things.
They missed the boat, bigtime, on smartphones and tablets, but building their own devices may be the only way they can drive Windows into this segment. With all the focus, on Android by smartphone and tablet OEM's, who is going to make the investment in Microsoft?
I think Nokia fits into the phone side. Sure, they aren't owned by Microsoft, but they are essentially Microsoft's phone hardware arm (or Microsoft is Nokia's software arm, depending on how you view the relationship).
I think your point of OEM's being spread between Android and Windows is a good one. Microsoft don't just need OEM's to support Windows, they need them to focus on it.
That is one of the reasons I think, at a bare minimum, Microsoft should develop a Windows 8 tablet reference design to be given freely to OEM's.
As I said above I don't think it would be a bad idea to sell it as well.
The reason Xbox can be describe as a success is because Microsoft designed (the security) and built (broken-prone) it that way. Considering that all their Xboxes from v1 to Slim can be made to play pirate games but hardware faults stopped this ability mean that these same people will keep buying them so they could continue playing pirate games. Ask around people who play pirate games on Xbox how many Xbox consoles they have/bought you'll see why the number is high.
It's an interesting theory, but it's not backed by the facts.
X360 has the highest attach rate per console sold of the current console generation.
Apple soda would obviously be apple flavored. MS I'm not quite sure...
Sweat?
Maybe we'll slap together an iPad competitor next year? By that time, Apple will have iPad 4 in the pipeline at a price that surely will flummox Redmond; what was it Dell said about closing up shop and giving money back to the investors? Stay tuned for another "disappointing" quarter from MS
To quote Daffy Duck....Oh Bruuuuuther