Apple's New iPads Expected to Hurt PC Growth Despite Windows 7 Driving PC Sales
Enterprise demand for PCs running Windows 7 is currently boosting the overall PC market but sales are expected to dip once again after the introduction of Apple’s new iPad Air and iPad mini with Retina display. In its quarterly earnings report, Microsoft revealed that though Windows revenue was down 7% year over year, the overall PC market seems to have stabilized. Analyst Maynard Um of Wells Fargo noted to investors that his stabilization has been driven by demand over business rather than consumers.
The demand from enterprises is “being driven by the Windows 7 refresh,” according to Um who said that Microsoft’s previous-generation operating system is now running on more than 75% of desktops. This suggests that enterprise adoption of Microsoft’s latest flagship operating system, Windows 8 has been strong. On the consumer side of the PC business, Microsoft indicated to investors that it’s hopeful that the competitive pricing on laptops this holiday season will help sales rebound. Um on the other hand said he doesn’t believe price is the primary issue in the current PC market. According to him:
As many of you know, the rise of the so-called “post PC” devices such as Apple’s iPad, has caused a dramatic shift in personal computing space. Although Windows remains the dominant platform on traditional computers, Microsoft seems to have fallen behind in the growing tablet space with some data suggesting that Microsoft’s share of overall personal computing sales has plummeted from 90% to 33% over the last five years.
Source: New York Times , Wells Fargo
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