Microsoft to move the world: or drastically cut down the price of WIN8 equipment

Beijing Time April 12 News, foreign media published in Thursday Analysis article said that the entire PC ecosystem is under threat. To defend the ecosystem, Microsoft and Intel can no longer shift responsibility to PC makers and must address the problem at the expense of their own interests.

The following is a summary of the article content:

Global PC shipments fell 14% per cent year-on-year in the first quarter, the biggest drop in history, according to IDC, a market research firm, reported in Wednesday. Microsoft's share price fell by 4.44% in Thursday, while HP's shares fell 6.45% and Intel's shares fell 1.95%.

Most surprisingly, investors were surprised, not only because the "Wintel" Alliance (Microsoft + Intel) missed out on the opportunities for mobile devices to flourish, but also because the latest attempts to regain ground had not worked for months. Typically supported by Intel processors, new devices that carry Microsoft's newest Windows 8 operating system rarely trigger consumer attention in the marketplace.

Microsoft blames this for its limited channel. But Bob O ' Donnell, analyst at IDC, a market research firm, Bob Odoner that such products are too confusing and expensive to sell. For example, because all Windows 8 devices are expected to have touch-screen capabilities, when consumers try a device without touch-screen functionality in a retail store, they think the product is broken. At the same time, consumers want to be able to buy a touch-screen pc at the price of a regular PC, but the high cost of the touch screen leads to higher prices for the product.

The market now expects PC shipments to recover in the second half of this year, especially as Microsoft's 3721.html ">2014 year will end support for Windows XP operating systems, forcing business users to upgrade their PCs." With XP users upgrading to Windows 7, it is expected that Intel, as well as Dell and Lenovo, which specializes in commercial PCs, will benefit. But given that few business users will choose to use the Windows 8 operating system, the trend is expected to recede soon. It is still unclear what benefits business users have of having touch-screen PCs on their staff desks.

Emerging markets are another hope for PC demand growth. Intel believes that the country's PC adoption rate will rise sharply once the PC sales price drops below 8 times times the average weekly income of a country's households. For example, China reached that threshold a few years ago. But IDC statistics show that the region's PC shipments fell 12.7% per cent year-on-year in the first quarter, keeping pace with the US market.

Mobile devices may be the culprit for the drop in PC shipments. Bernstein analyst Stessie Lasse (Stacy Rasgon) said some emerging market affluent consumers could completely skip PCs and buy mobile devices outright. Meanwhile, consumers in developed countries are spending more and more money and more time on tablets and smartphones, and they are no longer upgrading PCs as they used to.

If Microsoft and Intel do not take drastic measures immediately, the Wintel ecosystem will fall into a vicious circle. Popular devices encourage software development, which will attract more users and then more developers, creating a virtuous circle. PCs may never be sexy, but they always offer software that is compatible with different developers.

As PC sales continue to slide, software developers are likely to devote more effort to writing software for popular devices. At present, the popular equipment in the market is Apple's equipment and the use of Google (Weibo) Android operating system, and using the ARM architecture processor equipment.

If all the best mobile apps in the market are apps written for Apple and Google devices, even increasing sales channels, lowering prices to regular PC prices, and Microsoft's planned 7-inch surface tablet will not dampen the Wintel alliance's continued losses.

Another way to lure consumers is to slash the price of Windows 8 devices, but that means Microsoft and Intel will be less profitable. The profit margins of the PC industry-related companies have been relentlessly squeezed. To protect the system, it should be Microsoft and Intel this time round.

(Responsible editor: Fumingli)