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Monday, December 3, 2012

PC sales got no boost from Microsoft Windows 8



Sales of personal computers (PCs) in the US didn't get any boost from the launch of Windows 8, confounding the hopes of the operating system's maker Microsoft.

Microsoft Corp developed Windows 8 with tablets and touchscreens in mind. The new operating system features a new look and is designed to make desktops and laptops work more like tablets.

The Washington-based company is supporting the launch with its largest-ever advertising campaign. UBS analyst Mary Jo Foley put the value of the campaign at $1 billion.

However, research firm NPD Group that tracks US retail sales says in the three weeks after Windows 8 launched on October 26, sales of Windows PCs and tablet computers fell 21 per cent compared with a year earlier.

There's no sign that Windows 8 made things worse for PC makers. Rather, NPD said the weak sales are a continuation of a trend seen throughout this year.

US consumers appear more interested in spending electronics dollars on smartphones and tablets than on upgrading their computers. Several tablet makers have released new models this fall, and Apple has made a smaller version of its market-leading iPad.

PC makers were officially optimistic and have largely switched their consumer-focused product lines over to Windows 8, but they were cautious about stocking large numbers of PCs ahead of the launch. Reviews of the new operating system were mixed.

"After just four weeks on the market, it's still early to place blame on Windows 8 for the ongoing weakness in the PC market," NPD analyst Stephen Baker in a statement. "We still have the whole holiday selling season ahead of us, but clearly Windows 8 did not prove to be the impetus for a sales turnaround some had hoped for."

Baker said Windows 8 laptops with touch screens were doing well, helping drive up the average selling price of PCs.

Microsoft has said it sold 40 million licenses to Windows 8 in its first month on the market, but that number includes licenses bought by PC manufacturers such as Hewlett-Packard Co and Dell Inc for machines built but not yet sold.

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