Intel, which relies heavily on selling chips for PCs for its revenues, is not too optimistic and not too concerned regarding the launch of Windows 10. Intel CEO Brian Krzanich recently said he expects PC sales to decline slightly despite the fact that the Windows 10 launch is nearing.
Why is Krzanich not optimistic?
Windows 10 has been argued to be a game changer for Microsoft and related device makers. Many expect the new OS to boost sales of PCs. Krzanich, however, is not so optimistic over Windows 10, and he has his reasons.
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“We are going through another transition, Windows 10 upgrades… We’re seeing some quarter-to-quarter pushing, but we continue to take a view of our long-term forecast…” that the PC market will be “flat to slightly down mid single-digits over the long-term,” Krzanich said according to Business Insider.
Windows 10 will be offered for free to Windows 7 and 8.1 users, so it makes little sense for the buyers to get a new PC only because of the new OS. Even with their existing hardware, users will be able to enjoy Windows 10, which means fewer hardware upgrades. This was not the case in the past, as hardware upgrades were often required to support a new version of Windows because of different system requirements. However, this time Microsoft is keeping the requirements exactly the same as those for Windows 8.1’s.
Why is Intel CEO is not concerned?
Moreover, Krzanich is not too concerned about the impact of PC sales on Intel’s overall growth. The CEO believes the company’s other segments, especially the data center business, will compensate for a loss in PC sales. Last year, the chip maker’s data center business registered growth of 18%.
In 2014, more than 95% of the company’s operating income came from selling the PC chips. The PC market continues to decline, with a drop of 5.2% in global PC shipments in the first quarter of 2015, according to the research firm Gartner.
Microsoft is expected to launch Windows 10 this summer, so we won’t have to wait much longer to find out whether or not the new OS will give PC sales and Intel a boost.