Windows 8, Christmas failed to reinvigorate PC sales: Analyst

The introduction of Microsoft’s Windows 8 operating system and Christmas have failed to reinvigorate the PC market, according to one leading analyst, leading to trouble for PC chipmaker Intel.

According to Stene Agee analyst Vijay Rakesh, as reported by ZD Net, a lack of innovation in the PC marketplace is to blame for the situation.

“A lack of a competitive ecosystem versus tablets and lack of innovation in the PC product cycle continue to be headwinds to driving upside,” Rakesh says.

Rakesh claims the strong market presence of ARM-based chip design firms such as NVidia and Qualcomm is making it more difficult for Intel to make headway into the smartphone and tablet market.

Meanwhile, the introduction of ARM-based 64-bit processors is threatening Intel’s margins in the server market.

As SmartCompany reported in December, Lenovo’s North American president, Gerry Smith, admitted the undersupply of touchscreen PCs had been caused by the industry underestimating the level of consumer demand.

“As you go through any major architectural transition, you try to forecast accurately how much the attach rate will be on touch [or other features],” Smith said.

“Across every major [shift] over the past 10 years, we’re never right. The learning is: how do you respond to that? How does the industry change and evolve?”

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