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Gartner cuts 2011 PC forecast; Microsoft considering own-brand Windows 8 tablet

Gartner lowered its forecast Wednesday for global PC growth in 2011 as demand for netbooks continues to slump and Apple's iPad causes disruption, while Microsoft is reportedly considering launching its own brand of Windows 8 tablet PCs next year.

Gartner forecast

Research group Gartner indicated that it expects global PC shipments to grow 9.3 percent this year to 385 million units, down from its previous forecast of 10.5 percent, the Associated Foreign Press reports. Gartner had arrived at the 10.5 percent number in March after lowering its forecast from 15.9 percent growth in 2011.

"Consumer mobile PCs are no longer driving growth, because of sharply declining consumer interest in mini-notebooks," Gartner research director Ranjit Atwal said in a statement.

Atwal also sees the iPad as affecting sales, though he believes consumers are merely using the iPad to put off new PC purchases, rather than fully replace them. "Media tablets, such as the iPad, have also impacted mobile growth, but more because they have caused consumers to delay new mobile PC purchases rather than directly replacing aging mobile PCs with media tablets," he said. "We believe direct substitution of media tablets for mobile PCs will be minimal."

Gartner sees businesses as driving PC growth this year, as consumers appear to be "maintaining a tight rein on their spending" because of economic uncertainty. "Businesses sharply reduced replacements and extended PC lifetimes in response to the recession," said research analyst Raphael Vasquez. "Businesses have begun replacing aging PCs more vigorously."

Microsoft tablets

A new rumor suggests that Microsoft is looking into launching an own-brand tablet PC by the end of 2012, according to sources from the upstream supply chain.

In response to threats from Apple's continued growth with the iPhone, iPad and Macs, as well as Google's entry into the operating system market, "Microsoft plans to copy its branding strategy from product lines such as Xbox 360, Zune, Kin smartphone and TV, to compete in the tablet PC segment," DigiTimes reports.

The only Microsoft-branded product line that has seen success, however, is the Xbox 360. The Zune media player, the company's own-brand TVs and especially the Kin smartphone have all performed below expectations. Regardless, Microsoft is "still considering to launch an own-brand tablet PC and is proceeding on a low profile," sources said.

Sources also added that Microsoft would likely continue its plans for an Integrated Development Program alongside development of an own-brand tablet PC. Microsoft reportedly postponed the IDP, which places tight restrictions on chip vendors and OEMs building Windows 8 devices, after vendors expressed outrage at the restrictions.

49 Comments

ijordan 14 Years · 19 comments

Microsoft hardware and Microsoft software? Then someone would actually have to take the blame when calling for tech support? Can they handle that?

vinitaboy 18 Years · 156 comments

"A new rumor suggests that Microsoft is looking into launching an own-brand tablet PC by the end of 2012 . . . . "

BY THE END OF NEXT YEAR? The world has now been subjected to a new stratum of vaporware speculation and rumors! V-A-P-O-R-W-A-R-E rules! This is Potemkin Villages on steroids! Everyone, grab your pitchforks and torches and short AAPL, for MSFT has once again promised us the moon and the stars in our pockets. Holding my breath now for the NEW AND IMPROVED COURIER . . . .

paxman 18 Years · 4729 comments

Two comments -
1 - Calling iPads (or other similar tablets) "media tablets" shows ignorance and undermines the analysis.
2 - Oh Microsoft, you seem so lost these days. After so many failed initiatives and launches why would you approach this in a low key fashion. If you are going for your own brand tablet do it big. Wow the world. If not then don't bother. Save yourself the trouble and pain.

nagromme 23 Years · 2831 comments

Last week I would have agreed, that very few people would get an iPad instead of a computer. Come this fall, though, that will start to happen more and more!

Meanwhile, I definitely see the ?delayed purchase? happening. People make do with their old PC, not getting a new one because they?re using the iPad instead. Eventually, they?ll probably get a new PC. But they?ll keep them longer and buy them less often. That ?delay,? then, really IS fewer PC sales total.

And an iPad can (and does) already replace a second computer for many people. Or a third computer, or a computer for someone else in the same household. That?s lost PC sales too.

I know people who have never owned a computer because they?ve shared their roommates? or families? machines. Eventually they?d have gotten one... except now, I think they may not! They love the iPad and the iPad is cheap AND good (a rare combination).

dickprinter 17 Years · 1058 comments

Besides the software licensing model, has Microsoft ever been the first to market with anything, rather than copying?