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Vendors Have Negative Response to Windows 8, Says Analyst

Business Insider reports that Topeka Capital analyst Brian White recently traveled through Asia to meet with supply chain manufacturers. He discovered that they were "overwhelmingly negative" about Microsoft's upcoming Windows 8 platform, and reports that the supply chain thinks there will be "little life" after the Windows 8 launch on October 26.

"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," White stated. "One of our contacts does not expect Windows 8 to be material until the second-half of 2013."

The analyst also said enthusiasm for Ultrabooks in the supply chain has deteriorated, as the cost structure remains too high under Intel's current specifications. That less-than-stellar enthusiasm seems to echo a similar comment made by GBI Research in a recent report.

"The high prices of Ultrabooks compared to notebooks and tablet PCs is a major market challenge for manufacturers like HP, Dell, ASUS and Acer," the report said. "However, factors like the reduction in the processor prices, hardware and software support, funding from Intel and reduction in flash memory prices will have a significant impact on the overall Ultrabooks market sales in the long term."

GBI Research said it expects the global Ultrabook market to reach $75.8 billion in revenue in 2016, from just $1.3 billion in 2011, growing at a CAGR of 69.2-percent during 2012–2016.

On Monday Topeka Capital's Brian White said that due to the lackluster reception of Windows 8 and the still-high cost of Ultrabooks, the firm believes the PC industry "is headed for a muted December quarter and well below the ramp expected with new products."

Windows 8 will be here in less than two weeks. OEMs have already started introducing their upcoming launch products to the public including Lenovo, Vizio, Acer, Sony, Dell, Logitech, and more.

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  • Old_Fogie_Late_Bloomer
    With the Surface starting at $500 ($600 with a keyboard cover), it's not gonna just be venders with that negative outlook...
    Reply
  • kawininjazx
    Microsoft ruined it for themselves when they made Windows 7 so awesome, why would you switch?
    Reply
  • Bloob
    Seems like Windows will reign for a while longer:
    http://www.pcadvisor.co.uk/news/mobile-phone/3405180/survey-of-it-managers-suggests-preference-for-microsoft-mobile-platforms/

    Also, if Intel ultrabooks are too costly, use AMD ( or make "regular" laptops ).
    Reply
  • Benthon
    Absolutely zero reason to go to Windows 8 on a PC. With all the drastic changes, they should've put a bit more feedback into the equation.
    Reply
  • mcd023
    With the cost of ultras too high, it seems like that will open the door for AMD, which may then force intel to lower the prices of their cpu's for ultrabook manufacturers.

    In the mean time, I'm still looking forward the surface pro. I was gonna get the ASUS convertible, but they're putting Clover Trail or Field or whatever it is, which will perform like the Tegra 3, from what I've seen. So, I guess the Surface, with the keyboard and stylus is the next best thing.

    BenthonAbsolutely zero reason to go to Windows 8 on a PC. With all the drastic changes, they should've put a bit more feedback into the equation.For me, I like the faster boots and the background maintenance. Will you have to go to Win8? No. Will you have to get Office 2013? No. I will be getting the Win8 upgrade and I'll definitely miss 2013 when the preview ends.
    Reply
  • hotroderx
    I just wish Microsoft would admit they made a mistake and just give us the "OPTION" to use a standard desktop.

    Windows 8 is a little faster then Windows 7 I liked windows 8 for the most part. The 60-80 dollar price point I been seeing it at makes it very attractive. The only reason I will completely skip 8 is become of the forced Metro 8 Interface.

    I wish Microsoft would just release a update that allows metro to be disabled instead of digging its heels in. Maybe the backlash from the manufactures and community will be enough for Microsoft to see the error of its ways.
    Reply
  • CDdude55
    Not suprising, Windows 8 really doesn't offer much that would give people an incentive to upgrade. The new UI is one of the major reasons i don't think it will hold much of a market share compared to 7 and XP, most mainstream users are just now switching to 7 and when those people see Windows 8 i don't think they really see anything of worth. It really has no place for it's existance.

    It's a great tablet/touch OS, but nothing more.

    Reply
  • hotroderx
    mcd023With the cost of ultras too high, it seems like that will open the door for AMD, which may then force intel to lower the prices of their cpu's for ultrabook manufacturers.In the mean time, I'm still looking forward the surface pro. I was gonna get the ASUS convertible, but they're putting Clover Trail or Field or whatever it is, which will perform like the Tegra 3, from what I've seen. So, I guess the Surface, with the keyboard and stylus is the next best thing.For me, I like the faster boots and the background maintenance. Will you have to go to Win8? No. Will you have to get Office 2013? No. I will be getting the Win8 upgrade and I'll definitely miss 2013 when the preview ends.
    I think AMD's problem right now is no money to fund RD. Really troubling to say this but right now AMD is barely keeping its self a float. I really hope they pull out of there funk soon or we could start to see the same thing happen with Desktop processors.
    Reply
  • UMM this article is confusing. What does the state of the ultrabook market have anything to do with Windows 8, a product designed primarily for TABLET styled PC's? There is almost no reference to anything specific about Windows 8.

    Ultrabooks on the decline? Thanks for that fabulous insight Watson.......

    I would imagine that M$ will be pushing surface tablet primarily for windows 8 adoption. And guess what? You can turn off the Metro interface for everything not touch based. So that ends your overwhelming "meh" feeling about windows 8.
    Reply
  • jackbling
    HotRoderxI just wish***snip*** of its ways.
    It is just a full screen start menu, and instant search is improved.
    Reply