Windows 7 optimism may lead to lower hardware prices

Posted on Tuesday, October 20 2009 @ 0:04 CEST by Thomas De Maesschalck

The Tech Report writes that PC makers may have stocked up on too much hardware due to the optimism surrounding Windows 7, and that this excessive inventory may lead to falling prices.

You don't have to look very far for the warning signs. In a research note earlier this month, Gartner predicted that Windows 7 will only impact PC shipments in a "minimal" way. And after posting its financial results a few days ago, AMD reportedly said it expects revenue growth below seasonal trends this quarter. The chipmaker went on to cite "the big build we've seen of PCs in anticipation of the Win 7 launch" as the potential cause.

Barrons.com says AMD's comment in particular has cast doubt on Wall Street, leading stock prices for major chip vendors and hard-drive makers to slip. The site says excessive inventory could lead to "both reduced component consumption in Q4 and beyond . . . and lower pricing for memory."

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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Re: Windows 7 optimism may lead to lower hardware prices
by Anonymous on Tuesday, October 20 2009 @ 4:54 CEST

Keep telling both the hardware vendors and Microsoft, USB 3 is really a ticket they should be widely promoting. It should be in everything as fast as possible. Why? Because it will literally change night and day how fast flash drives work, external hardrives, cameras, phones, etc. Given how rarely a new generation of USB comes along, how much of a speed bump up this is, and how much the hardware industry needs truly "noticeable" upgrades to increase hardware sales, you'd think this would be a no brainer. But MS fumbles on support, Intel introduces new chipsets with USB 3 nowhere to be found and the industry that needs innovation the most right now, falls flat on it's face. No wonder they're telling the press that "sales will pickup in 2011". That's when they might finally get their act together...

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