More Evidence That Windows 8 Isn't Boosting PCshttp://www.fool.com/investing/general/2013/01/15/more-evidence-that-windows-8-isnt-boosting-pcs.aspx Evan Niu, CFA
January 15, 2013
Following up on IDC's estimates on PC shipments in the fourth quarter, market researcher Gartner (NYSE: IT) has now put out its own figures on how poorly the broader PC market is faring. There's some disagreement between the two, but the consensus is that investors are still looking at a market in decline.
If you recall, Gartner figures show Hewlett-Packard (NYSE: HPQ) losing its crown as the top PC maker in the world by unit volumes in the third quarter, ceding that title to Lenovo after the latter slid ahead by just over 200,000 units. Following the third-quarter decline of 8.3% in global PC shipments as consumers and companies alike anxiously awaited the transition to Microsoft (NASDAQ: MSFT) Windows 8, the PC market just shrank a little bit more.
In order to boost its market share, it's possible that HP sacrificed margins and the PC giant participated in the broad rollout of new Windows 8 devices. HP's personal systems group remains its biggest revenue generator, but also its lowest margin division, so the segment can't very well afford margin declines.
Echoing IDC's findings, Gartner says Windows 8 was unsuccessful in boosting overall PC volumes. The researcher said that PC OEMs were "lackluster" in their form factor designs and are mostly missing out on the potential in touch interfaces.