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Samsung Exec Blames Windows 8 for Declining PC Market

By - Source: Korea Times | B 96 comments

Samsung says the PC industry will be phased out with the help of disappointing Windows 8 sales.

On Friday Jun Dong-soo, president of Samsung’s memory chip division, told reporters at the COEX InterContinental Hotel in Seoul that Windows 8 has failed to bolster demand for PCs, and that the industry will likely not rebound any time soon. Even more, he said that Microsoft's new Windows overhaul is really no better than Windows Vista based on current market performance.

"The global PC industry is steadily shrinking despite the launch of Windows 8," he told reporters. "I think the Windows 8 system is no better than the previous Windows Vista platform."

He goes even further to say that there will be no expected boost to PC sales thanks to Windows 8's failure, and that the PC industry itself will gradually be phased out. Naturally, this comment stems from a company that seemingly makes the bulk of its revenue from Android-laced smartphones and tablets. Still, the comments hurt.

''Microsoft’s rollout of its Windows Surface tablet is seeing lackluster demand," he said. "Meanwhile, previous vigorous pitches by Intel and Microsoft for thinner Ultrabooks simply failed and I believe that’s mostly because of the less-competitive Windows platform."

Double ouch. He then goes on to question why the prices of conventional memory chips are rising even though the PC market itself is declining. Currently U.S.-based Micron is the #1 supplier with a 51-percent share of the global market, followed by SK Hynix (31-percent) and Samsung (15-percent). He claimed that Samsung does not manipulate the chip prices, that the current situation is "surely unhealthy."

Jun's comments arrive after the International Data Corporation (IDC) said that PC shipments in 2013 are expected to decline 1.3-percent in 2013. The forecast is based on poor holiday sales, an "underwhelming" reception to Microsoft's new Windows 8 platform, and a continuing economic "malaise" that further crimped IT budgets in the second half of 2012.

"Although the PC industry had banked on Windows 8 and a more varied and less expensive offering of ultrathin notebooks to revive demand, efforts thus far have been disappointing," the firm said.

A lack of touchscreen components has contributed to a limited supply of touch-enabled Windows 8 models which in turn has hindered sales of the touch-based platform. Those that are on the market appear relatively expensive compared to other options.

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  • 38 Hide
    ssd_pro , March 8, 2013 11:32 PM
    Correct. There was enthusiasm around the Windows 7 launch on a much greater scale. The best you find for 8 are comments like:

    "Its not that bad."
    "I can tolerate it."
    "Just install Start8 and it is fine."
    "I just like having the latest."
    "I had to get it, that's all they offered. I don't mind it."

    That is not enthusiasm, its pathetic. And yes, it really isn't bad. It is a fine OS. It just isn't exciting or innovative.
  • 24 Hide
    whyso , March 8, 2013 11:46 PM
    Seriously, if you think windows 8 is not hurting laptops sales just go on newegg and look at laptop review. Most common complaint (for notebooks sold with windows 8) is that it runs windows 8.
  • 20 Hide
    ipwn3r456 , March 8, 2013 11:08 PM
    And Microsoft is blaming on their PC Venders... What now microsoft?
Other Comments
  • 20 Hide
    ipwn3r456 , March 8, 2013 11:08 PM
    And Microsoft is blaming on their PC Venders... What now microsoft?
  • -7 Hide
    bluerider , March 8, 2013 11:28 PM
    It is the vendors. How many Samsung, Asus, Acer commercials do we see for Window's PCs nowadays? All I see are android and apple commercials. If Samsung wants to blame anyone, they should blame their own marketing team for failing to market any of their Windows 8 PC's. Samsung paid lip service to Windows, then actively worked against the Windows brand, and now that it's reveling in its success, they blame Microsoft (who's surface commercials are the only ones I see). That's very underhanded.
  • -9 Hide
    Wamphryi , March 8, 2013 11:29 PM
    Now that Win 8 has been rejected for reasons that are often inaccurate it is possible the PC industry may decline. That will push up prices from mass market pricing to niche market pricing. Something we can all look forward to I guess. To bad Win 8 actually works well and is an excellent performer on an ultra book. All that means nothing in the face of that missing Start Button.
  • 2 Hide
    bison88 , March 8, 2013 11:29 PM
    This is simply a small case of domestic abuse. They'll both kiss and make up, eventually.
  • 38 Hide
    ssd_pro , March 8, 2013 11:32 PM
    Correct. There was enthusiasm around the Windows 7 launch on a much greater scale. The best you find for 8 are comments like:

    "Its not that bad."
    "I can tolerate it."
    "Just install Start8 and it is fine."
    "I just like having the latest."
    "I had to get it, that's all they offered. I don't mind it."

    That is not enthusiasm, its pathetic. And yes, it really isn't bad. It is a fine OS. It just isn't exciting or innovative.
  • 8 Hide
    STravis , March 8, 2013 11:40 PM
    Samsung is making money hand over fist with their Android phones - so much so that Google is worried that they may be held hostage by them; of course Samsung has very little interest in PC's. They're not as lucrative.
  • 13 Hide
    house70 , March 8, 2013 11:41 PM
    Win8 just doesn't offer anything compelling for consumers to upgrade from Win7. With Win7, they were trying to get away from Vista as fast as possible, and that was because the initial release of Vista was pathetic. It did improve quite a bit after SP1, but the damage was done already, and Win7 was around the corner.
    Win8 is not a bad OS, but the stakes were just raised too high by Win7.
  • 0 Hide
    STravis , March 8, 2013 11:41 PM
    A PC industry that is not growing rapidly does NOT mean it's declining. SumYunguy is talking out of his rear.
  • 6 Hide
    house70 , March 8, 2013 11:42 PM
    I forgot to mention the drivers; for Win7, one could use WinVista drivers just as well. Win8 required new drivers. The support did not keep up the pace.
  • 24 Hide
    whyso , March 8, 2013 11:46 PM
    Seriously, if you think windows 8 is not hurting laptops sales just go on newegg and look at laptop review. Most common complaint (for notebooks sold with windows 8) is that it runs windows 8.
  • 8 Hide
    Jerky_san , March 8, 2013 11:58 PM
    @_@ an Exec that knows something.. its amazing..
  • 2 Hide
    nssv , March 9, 2013 12:10 AM
    When was the last time Samsung had a successful PC anyway?
  • 19 Hide
    tobalaz , March 9, 2013 12:46 AM
    Windows 8 without a touchscreen is junk.
    Sorry.
    Had to say it.

    Outside of Windows 8 packing the single highest amount of suck since Windows ME, there are other things to take into consideration before laying all the fail on the OS.
    1. Tablets and phones are sucking the desktop/ laptop market dry.
    2. Driver support isn't there where Win8 performance hasn't been as good in games as Win7.
    3. Win8 really is a touchscreen interface, without a touchscreen it isn't what I'd call usable because it doesn't flow as easy with a mouse and keyboard.
    4. Big companies are going to hold on to Win7 and even Vista kicking and screaming before they sink a dime into training employees and IT people a radical new interface that many users find confusing.
    5. Win8 maintenance is confusing unless you've been TRAINED for Win8. You can't just go to the control panel anymore, you have to know the secret of the charms bar because the control panel functionality has been nerfed down to the equivalent of right click in an empty space on the desktop.

    Sure, there were GRADUAL CHANGES from one version of windows to the next, it allowed all of us to adapt to the next version with relative ease. Problem is when Linux looks more like Windows than Windows does, well, MS screwed the pooch.
  • 10 Hide
    anxiousinfusion , March 9, 2013 1:07 AM
    This is all just so frustrating to watch.
  • 1 Hide
    AndrewMD , March 9, 2013 1:09 AM
    Having owned a Samsung Laptop in the past, (2 years ago) I can honestly say that their hardware sucks. They love copying Apple designs but fail every time to produce something that is worth their premium price.

    ** I had their small 11" laptop with an i3 CPU, first one died 3 hours after purchasing it. The replacement started melting the case around the cpu.... (this was suppose to compete against the mac book air)....

    From a smartphone prospective, they suck even more, starting today, I am on my fourth replacement model of the Note.....

    It's time for Samsung to shut up and start producing products that are high quality.
  • 4 Hide
    AndrewMD , March 9, 2013 1:10 AM
    Did Samsung ever consider the reason that PC sales are dropping is because people are content with their current computers and they are purchasing tablet and smartphones instead?
  • -5 Hide
    dimar , March 9, 2013 1:14 AM
    So what. I blade Samsung for not inventing a desktop OS to challenge Windows.
  • 9 Hide
    rooseveltdon , March 9, 2013 1:49 AM
    The enterprise segment will more than likely never move to Windows 8 (most are stuck on XP and are just now moving to 7) and the mainstream never really liked it either, the UI change was drastic and honestly unnecessary and it's simply backfiring on them.
  • 5 Hide
    corbeau , March 9, 2013 1:54 AM
    I'm tire of these companies bickering over who is at fault, it's simple, it's both hardware and software to blame for the limited PC market. Windows 8 while not terrible, isn't the most user friendly. If you want to create a compelling reason for people to upgrade, how about putting SSDs into full laptops at a reasonable price points. Right now in order to maximize your dollar you're best off buying a $400 laptop and swapping out the HDD for an SSD, why not sell a laptop for $600 with say a 120gb SSD and give people a reason to upgrade?
  • 1 Hide
    srini199 , March 9, 2013 2:09 AM
    corbeau i agree with u
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