TAIPEI (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) forecast two quarters of weaker revenue but said the boom in mobile devices that drove it to record third-quarter profit would fuel a rebound from April.
Cutting-edge 28 nanometer technology has put the world's biggest contract chip maker ahead of rivals as consumers shift to mobile gadgets like Apple Inc's iPad and iPhone and away from personal computers.
'We think the reason (for rebound in Q2) is the strength of mobile demand,' Chairman Morris Chang told an investor briefing. 'We expect mobile products to be strong for a number of years.'
Shipments of chips made by 28-nanometer process technology, which can cram much more computing power into smaller chips and is widely sought after for mobile devices, more than doubled during the third quarter and accounted for 13 percent of total wafer revenues, TSMC said.
But rising inventory levels at end-users like automakers and computer makers have stoked concerns, and TSMC said inventory adjustment will cause a fall in fourth-quarter revenue and a 'modest dip' in the first quarter of 2013.
Texas Instruments Inc, a key TSMC client, this week forecast surprisingly weak revenue for the fourth quarter, saying its customers were nervous about demand amid a deteriorating global economy.
Chipmakers Broadcomm Corp and LSI Corp have also recently forecast weak fourth-quarter revenue. Chipmakers tied to the PC chain have been among the hardest hit as customers gravitate to mobile devices instead.
RECORD PROFIT
TSMC said net profit in the July-September period jumped 62 percent to a record T$49.3 billion ($1.7 billion) from a year earlier, above the T$45.3 billion average estimate of 22 analysts polled by Thomson Reuters I/B/E/S.
The figure compares with T$41.8 billion in the second quarter.
TSMC said it saw revenue in the fourth quarter at between T$129 billion and T$131 billion, versus the third quarter's T$141.4 billion. Its gross margin would dip to between 45 percent and 47 percent from 48.8 percent in the third quarter.
Capital spending next year would be in 'the same ballpark' as this year, Chang said. Spending this year will total $8.3 billion.
TSMC's clients include Texas Instruments and Nvidia.
Before the results announcement, TSMC shares closed down 0.7 percent, in line with the broader market. The shares are up 12 percent for the year to date, compared with a 2.7 percent rise for the broader market.
($1 = 29.2845 Taiwan dollars)
(Additional reporting by Clare Jim; Writing by Jonathan Standing; Editing by Edwina Gibbs)
Thursday, October 25, 2012
TSMC sees six months of weaker sales after record Q3 profit
TAIPEI (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) forecast two quarters of weaker revenue but said the boom in mobile devices that drove it to record third-quarter profit would fuel a rebound from April.
Cutting-edge 28 nanometer technology has put the world's biggest contract chip maker ahead of rivals as consumers shift to mobile gadgets like Apple Inc's iPad and iPhone and away from personal computers.
'We think the reason (for rebound in Q2) is the strength of mobile demand,' Chairman Morris Chang told an investor briefing. 'We expect mobile products to be strong for a number of years.'
Shipments of chips made by 28-nanometer process technology, which can cram much more computing power into smaller chips and is widely sought after for mobile devices, more than doubled during the third quarter and accounted for 13 percent of total wafer revenues, TSMC said.
But rising inventory levels at end-users like automakers and computer makers have stoked concerns, and TSMC said inventory adjustment will cause a fall in fourth-quarter revenue and a 'modest dip' in the first quarter of 2013.
Texas Instruments Inc, a key TSMC client, this week forecast surprisingly weak revenue for the fourth quarter, saying its customers were nervous about demand amid a deteriorating global economy.
Chipmakers Broadcomm Corp and LSI Corp have also recently forecast weak fourth-quarter revenue. Chipmakers tied to the PC chain have been among the hardest hit as customers gravitate to mobile devices instead.
RECORD PROFIT
TSMC said net profit in the July-September period jumped 62 percent to a record T$49.3 billion ($1.7 billion) from a year earlier, above the T$45.3 billion average estimate of 22 analysts polled by Thomson Reuters I/B/E/S.
The figure compares with T$41.8 billion in the second quarter.
TSMC said it saw revenue in the fourth quarter at between T$129 billion and T$131 billion, versus the third quarter's T$141.4 billion. Its gross margin would dip to between 45 percent and 47 percent from 48.8 percent in the third quarter.
Capital spending next year would be in 'the same ballpark' as this year, Chang said. Spending this year will total $8.3 billion.
TSMC's clients include Texas Instruments and Nvidia.
Before the results announcement, TSMC shares closed down 0.7 percent, in line with the broader market. The shares are up 12 percent for the year to date, compared with a 2.7 percent rise for the broader market.
($1 = 29.2845 Taiwan dollars)
(Additional reporting by Clare Jim; Writing by Jonathan Standing; Editing by Edwina Gibbs)
This news article is brought to you by GOING GREEN NEWS - where latest news are our top priority.
Cutting-edge 28 nanometer technology has put the world's biggest contract chip maker ahead of rivals as consumers shift to mobile gadgets like Apple Inc's iPad and iPhone and away from personal computers.
'We think the reason (for rebound in Q2) is the strength of mobile demand,' Chairman Morris Chang told an investor briefing. 'We expect mobile products to be strong for a number of years.'
Shipments of chips made by 28-nanometer process technology, which can cram much more computing power into smaller chips and is widely sought after for mobile devices, more than doubled during the third quarter and accounted for 13 percent of total wafer revenues, TSMC said.
But rising inventory levels at end-users like automakers and computer makers have stoked concerns, and TSMC said inventory adjustment will cause a fall in fourth-quarter revenue and a 'modest dip' in the first quarter of 2013.
Texas Instruments Inc, a key TSMC client, this week forecast surprisingly weak revenue for the fourth quarter, saying its customers were nervous about demand amid a deteriorating global economy.
Chipmakers Broadcomm Corp and LSI Corp have also recently forecast weak fourth-quarter revenue. Chipmakers tied to the PC chain have been among the hardest hit as customers gravitate to mobile devices instead.
RECORD PROFIT
TSMC said net profit in the July-September period jumped 62 percent to a record T$49.3 billion ($1.7 billion) from a year earlier, above the T$45.3 billion average estimate of 22 analysts polled by Thomson Reuters I/B/E/S.
The figure compares with T$41.8 billion in the second quarter.
TSMC said it saw revenue in the fourth quarter at between T$129 billion and T$131 billion, versus the third quarter's T$141.4 billion. Its gross margin would dip to between 45 percent and 47 percent from 48.8 percent in the third quarter.
Capital spending next year would be in 'the same ballpark' as this year, Chang said. Spending this year will total $8.3 billion.
TSMC's clients include Texas Instruments and Nvidia.
Before the results announcement, TSMC shares closed down 0.7 percent, in line with the broader market. The shares are up 12 percent for the year to date, compared with a 2.7 percent rise for the broader market.
($1 = 29.2845 Taiwan dollars)
(Additional reporting by Clare Jim; Writing by Jonathan Standing; Editing by Edwina Gibbs)
This news article is brought to you by GOING GREEN NEWS - where latest news are our top priority.
Wednesday, October 24, 2012
Apple's Mac flies in under the radar
SAN FRANCISCO (Reuters) - Amid the fanfare accompanying the noisy launch of the iPad mini this week, Apple Inc also took the wraps off new Mac computers.
The facelift may help revitalize an important lineup that -- while seeing growth tail off in the early part of 2012 -- yields 14 percent of revenue and still racks up sales growth numbers that are the envy of a flagging PC world.
On Tuesday, Apple took the lid off a slimmed-down iMac and a 13-inch laptop with a vastly improved screen, setting the stage for a potential revival in sales even as Hewlett-Packard and Dell Inc struggle just to stay level.
Earlier this year, Apple had also launched an updated MacBook Air - a product analysts say spawned over 20 touch-enabled designs from rivals called 'Ultrabooks,' which run Microsoft Corp's upcoming Windows 8 software.
Apple remains No. 3 in U.S. market share behind HP and Dell. But the Mac's premium pricing, at $1,000 and above, and its subsequent outsized margins mean a spike in revenue growth can give its bottom line a significant boost.
'The pricing and feature set of the refreshed iMac present an attractive combination, and I would not be surprised to see the new iMac stimulate desktop sales in the December quarter and beyond,' Barclays analyst Ben Reitzes said.
The decades-old Macintosh line that helped set a stumbling computer company back on its feet -- today overshadowed in both revenue and media appeal by the popular iPhone and iPad -- saw growth drop to single-digit percentages in the first two quarters of 2012 for the first time since 2009.
Yet sales outgrew the PC market, overall, by more than seven times over the 12 months to June, according to CEO Tim Cook, and has outpaced PC growth over the last six years.
Apple reports fiscal fourth quarter results on Thursday. The company will likely have sold 5.1 million Macs in the October quarter, up just 5 percent, Piper Jaffray & Co analyst Gene Munster estimates.
HALO EFFECT
On Tuesday, Apple Marketing Chief Phil Schiller called the Mac 'what began it all,' and he claimed the Mac was America's No. 1 laptop and desktop among individual models. Research houses Gartner and IDC figures place Apple third in the United States with a market share of about 13 percent.
Regardless where it places, at prices starting at $1,000 for its MacBook Air and going all the way close to $4,000 and growth -- while well off the 30-percent range of 2010 -- still defying the market, the Mac has proven a consistent money-spinner for the company even during troubled times for the traditional PC.
Intel Corp, HP and other stalwarts of the PC industry are now fighting to sustain growth as tablet computers eat into their PC-related businesses.
While the Mac line has not completely side-stepped PC market trends, it has held up better partly because it is targeted at a higher-spending clientele that values its consistency, vis-a-vis the often fragmented PC, where multiple vendors supply different components that don't always work seamlessly.
But it also owes its success in large part to a so-called halo effect stemming from consumers' experiences with the iPhone and iPad, said Loren Loverde, analyst with research firm IDC.
'They are on the positive end of halo effect both in terms of traffic and brand image,' Loverde said, adding that Apple also has yet to fully realize the international growth opportunities for Mac, and expects the new products to see good demand during the holiday quarter.
Late Apple co-founder Steve Jobs introduced the Macintosh in 1984, and it became the first successful computer to feature a mouse and a graphical user interface -- a model that has stayed intact through the succeeding decades. The desktop Mac itself stuck to that interface but has radically shifted in design over the years, to today's slim, all-in-one form.
Analysts say the redesigned Macs may give Apple's December quarter an extra lift, but the quarter will hinge mostly on how many consumers bought iPads and iPhones, which combined accounts for 72 percent of the company's revenue.
Cook and other executives are likely to be questioned on the smartphone's supply issues and the ramp-up of the new 'iPad mini,' available in stores on November 2.
'The bigger question is likely the company's ability to ramp supply to meet the strong demand,' Baird Equity Research analyst William Power said. Recent investor concerns regarding Apple have included 'perceived slowing iPhone innovation, the lack of a strong developing market strategy for iPhone and current iPhone supply constraints.'
Apple's stock has reflected some of those concerns. While the stock is up 52 percent this year, it is down 12 percent from its record high of $705 on September 21. Despite the pullback, Apple is trading at 11.6 times next year's estimated earnings, same as the S&P 500 and far lower than some rivals like Amazon.com Inc, which trades at 100 times estimated 2013 earnings.
Investors will focus initially on the headline shipment numbers during the fiscal third quarter on Thursday. It is estimated to have sold between 24 million and 26 million iPhones in the July-September period.
And Apple said on Tuesday that it sold its 100 millionth iPad two weeks ago, which means that the company sold under 16 million last quarter. This is below the 17 million to 18 million some analysts had forecast.
Longer term, Apple could also face margin pressure as smartphones pass the 50 penetration rate in major developed markets, said BGC analyst Colin Gillis.
'The next stage of smart phone growth could be more focused on mid-to-lower priced offerings,' Gillis said. 'Apple may find it difficult to maintain margin while growing massive scale, particularly as the overall market for smartphones slows.'
(Reporting by Poornima Gupta; Editing by Lisa Shumaker)
The facelift may help revitalize an important lineup that -- while seeing growth tail off in the early part of 2012 -- yields 14 percent of revenue and still racks up sales growth numbers that are the envy of a flagging PC world.
On Tuesday, Apple took the lid off a slimmed-down iMac and a 13-inch laptop with a vastly improved screen, setting the stage for a potential revival in sales even as Hewlett-Packard and Dell Inc struggle just to stay level.
Earlier this year, Apple had also launched an updated MacBook Air - a product analysts say spawned over 20 touch-enabled designs from rivals called 'Ultrabooks,' which run Microsoft Corp's upcoming Windows 8 software.
Apple remains No. 3 in U.S. market share behind HP and Dell. But the Mac's premium pricing, at $1,000 and above, and its subsequent outsized margins mean a spike in revenue growth can give its bottom line a significant boost.
'The pricing and feature set of the refreshed iMac present an attractive combination, and I would not be surprised to see the new iMac stimulate desktop sales in the December quarter and beyond,' Barclays analyst Ben Reitzes said.
The decades-old Macintosh line that helped set a stumbling computer company back on its feet -- today overshadowed in both revenue and media appeal by the popular iPhone and iPad -- saw growth drop to single-digit percentages in the first two quarters of 2012 for the first time since 2009.
Yet sales outgrew the PC market, overall, by more than seven times over the 12 months to June, according to CEO Tim Cook, and has outpaced PC growth over the last six years.
Apple reports fiscal fourth quarter results on Thursday. The company will likely have sold 5.1 million Macs in the October quarter, up just 5 percent, Piper Jaffray & Co analyst Gene Munster estimates.
HALO EFFECT
On Tuesday, Apple Marketing Chief Phil Schiller called the Mac 'what began it all,' and he claimed the Mac was America's No. 1 laptop and desktop among individual models. Research houses Gartner and IDC figures place Apple third in the United States with a market share of about 13 percent.
Regardless where it places, at prices starting at $1,000 for its MacBook Air and going all the way close to $4,000 and growth -- while well off the 30-percent range of 2010 -- still defying the market, the Mac has proven a consistent money-spinner for the company even during troubled times for the traditional PC.
Intel Corp, HP and other stalwarts of the PC industry are now fighting to sustain growth as tablet computers eat into their PC-related businesses.
While the Mac line has not completely side-stepped PC market trends, it has held up better partly because it is targeted at a higher-spending clientele that values its consistency, vis-a-vis the often fragmented PC, where multiple vendors supply different components that don't always work seamlessly.
But it also owes its success in large part to a so-called halo effect stemming from consumers' experiences with the iPhone and iPad, said Loren Loverde, analyst with research firm IDC.
'They are on the positive end of halo effect both in terms of traffic and brand image,' Loverde said, adding that Apple also has yet to fully realize the international growth opportunities for Mac, and expects the new products to see good demand during the holiday quarter.
Late Apple co-founder Steve Jobs introduced the Macintosh in 1984, and it became the first successful computer to feature a mouse and a graphical user interface -- a model that has stayed intact through the succeeding decades. The desktop Mac itself stuck to that interface but has radically shifted in design over the years, to today's slim, all-in-one form.
Analysts say the redesigned Macs may give Apple's December quarter an extra lift, but the quarter will hinge mostly on how many consumers bought iPads and iPhones, which combined accounts for 72 percent of the company's revenue.
Cook and other executives are likely to be questioned on the smartphone's supply issues and the ramp-up of the new 'iPad mini,' available in stores on November 2.
'The bigger question is likely the company's ability to ramp supply to meet the strong demand,' Baird Equity Research analyst William Power said. Recent investor concerns regarding Apple have included 'perceived slowing iPhone innovation, the lack of a strong developing market strategy for iPhone and current iPhone supply constraints.'
Apple's stock has reflected some of those concerns. While the stock is up 52 percent this year, it is down 12 percent from its record high of $705 on September 21. Despite the pullback, Apple is trading at 11.6 times next year's estimated earnings, same as the S&P 500 and far lower than some rivals like Amazon.com Inc, which trades at 100 times estimated 2013 earnings.
Investors will focus initially on the headline shipment numbers during the fiscal third quarter on Thursday. It is estimated to have sold between 24 million and 26 million iPhones in the July-September period.
And Apple said on Tuesday that it sold its 100 millionth iPad two weeks ago, which means that the company sold under 16 million last quarter. This is below the 17 million to 18 million some analysts had forecast.
Longer term, Apple could also face margin pressure as smartphones pass the 50 penetration rate in major developed markets, said BGC analyst Colin Gillis.
'The next stage of smart phone growth could be more focused on mid-to-lower priced offerings,' Gillis said. 'Apple may find it difficult to maintain margin while growing massive scale, particularly as the overall market for smartphones slows.'
(Reporting by Poornima Gupta; Editing by Lisa Shumaker)
Tech focus now on Microsoft Windows 8, Surface tablet
SEATTLE (Reuters) - Firm sales numbers for Microsoft Corp's Windows 8 and its new Surface tablet will not be available for three months, but it may be clear long before then if it has a hit on its hands.
'We can definitely gauge it by chatter,' said Emily Chan, an analyst at Bernstein Research. 'There is a slight learning curve, so I don't think we will see that big pop that iPad saw.'
Microsoft is desperate for the new-look, touch-friendly Windows 8 to grip customers' imaginations, as it looks to regain ground lost to Apple Inc and Google Inc in mobile computing and shake up the moribund PC market.
Perhaps more important is its new own-brand tablet called the Surface, available only through its own stores and website, which will challenge Apple's iPad head on.
'I'd want to know the sales - and return rate - of the Surface,' said Sarah Rotman Epps at tech research firm Forrester. 'But those numbers will be hard to get since Microsoft is the only retailer.'
Early reviews of the Surface have been mixed, generally praising the slick hardware, but faulting battery life and the limited software and applications available.
Some worry that the first Surface model, which runs on a stripped-down version of Windows 8 called RT that is not compatible with old Windows programs, will cause some confusion and dissatisfaction among customers.
The three models for sale on Microsoft's U.S. website are already on back order, suggesting strong demand, but it is not known how many Surfaces Microsoft has manufactured.
'The fact it's back ordered is indicative that there's consumer interest,' said Michael Gartenberg, an analyst at tech research firm Gartner. 'How Microsoft introduces it, evangelizes it and explains it will determine long term success.'
BALLMER NOISE
Microsoft has not said if it will reveal sales figures for Windows 8 or of the Surface before its next scheduled earnings on January 24. The company tends to trumpet good news and stay silent otherwise.
After the launch of Windows 7 three years ago, CEO Steve Ballmer waited only a month to announce strong sales. A year later, he waited only 10 days to report record-breaking sales of the Kinect, the motion-sensing add-on for the Xbox. But Microsoft has never shared the sales of Windows-powered phones, which have a lowly 3 percent of the market.
If Ballmer stays silent about Windows 8 sales, it might indicate a less than stellar performance.
'I would definitely take it a sign that it's not super, super strong, but I won't take it as something negative,' said Chan at Bernstein, who is expecting 8.3 million Surface sales by the middle of next year.
That averages out at about 1 million a month, a third the rate of the iPad, which notched up its first million sales in 28 days and has now sold more than 100 million units, averaging about 3.2 million a month.
Gartner forecasts that Surface and other tablets running Windows RT will sell about 2.3 million units this year and 9.3 million next year, grabbing about 2 percent and 5 percent of the worldwide tablet market, respectively.
DOOR-BUSTERS
Retail activity will be closely watched. Microsoft will have more than 60 brick and mortar stores open for the release of Windows 8 on Friday, half of them 'pop-up' stores that will stay open for the holiday shopping season.
Third-party retailers are cautiously optimistic.
'We have seen pretty good response to our pre-orders for Windows 8,' said Best Buy Co Inc spokesman Jeff Haydock. 'Quite honestly, I don't know what to expect from Friday. I don't know if there will be lines or not. My sense is it will take some time for people to kind of come into the stores and check it out.'
Best Buy may give some color on how PC sales are going when it reports earnings on November 20.
Wal-Mart Stores Inc, the No. 1 U.S. retailer, said U.S. pre-orders for Windows 8 PCs 'have been better than expected.'
Online retailers Amazon.com Inc, Newegg Inc and TigerDirect Inc have been silent on Windows 8 pre-orders.
The full impact of PC sales on retailers will not be evident until chains report same-store sales for November.
QUICK REACTION
One early indicator of Windows 8's success will be the contents of the online Windows Store. Microsoft has had a harder time drumming up interest among developers for Windows 8, given the risk that there will be fewer users than competing platforms.
Microsoft will not disclose numbers, but there are expected to be 5,000 or so third-party apps available to U.S. users, in comparison with the iPad's 275,000. Some big names such as Facebook Inc will be missing.
In social media, the tenor of comments on the Twitter hashtags #Windows8 and #Surface will give an indication of their reception after Ballmer unveils them both on Thursday.
Many users likely will be shocked by the new design, which dispenses with the Start button and features square tiles for apps.
'Public reaction to the new UI will depend how well Microsoft explains why 'different' is better and teaches how the new experience works,' said Gartenberg. 'That all starts on Thursday.'
BY THE NUMBERS
The ultimate test for Windows 8 will be PC sales.
Industry trackers are expecting a bump for PC sales in the last two months of the year, but not enough to rescue the whole year, which is forecast to dip for the first time since 2001.
Some analysts had expected an uptick in production of laptops ahead of the Windows 8 launch, but PC makers facing an uncertain global economy have been wary about committing.
Chip maker Intel Corp, which is a good gauge of future PC demand due to its position early in the production process, expects the PC business to grow at only half the normal seasonal rate in the fourth quarter.
Chief Executive Paul Otellini recently told analysts he expects to have a better understanding of the success of Windows 8 in 90 days.
Stephen Baker, an analyst at retail research firm NPD Group, is expecting a 10 percent jump in PC sales for November and December over last year, but said comparisons will be difficult given a profusion of new devices and the volatility of year-ago data.
Fourth-quarter PC shipment numbers from research firms Gartner and IDC will not be published until early January, although analysts say PC makers might start to drop hints about demand before then.
'There will likely be many milestones, but very few will ultimately be decisive. The key point is will PC sales continue to shrink or will they experience a boost,' said Al Hilwa at research firm IDC. 'We can probably begin to properly judge that with some ambiguity in January.'
(Additional reporting By Dhanya Skariachan in New York, Jessica Wohl in Chicago and Noel Randewich in San Francisco. Editing by Andre Grenon)
This article is brought to you by COMPUTERS.
'We can definitely gauge it by chatter,' said Emily Chan, an analyst at Bernstein Research. 'There is a slight learning curve, so I don't think we will see that big pop that iPad saw.'
Microsoft is desperate for the new-look, touch-friendly Windows 8 to grip customers' imaginations, as it looks to regain ground lost to Apple Inc and Google Inc in mobile computing and shake up the moribund PC market.
Perhaps more important is its new own-brand tablet called the Surface, available only through its own stores and website, which will challenge Apple's iPad head on.
'I'd want to know the sales - and return rate - of the Surface,' said Sarah Rotman Epps at tech research firm Forrester. 'But those numbers will be hard to get since Microsoft is the only retailer.'
Early reviews of the Surface have been mixed, generally praising the slick hardware, but faulting battery life and the limited software and applications available.
Some worry that the first Surface model, which runs on a stripped-down version of Windows 8 called RT that is not compatible with old Windows programs, will cause some confusion and dissatisfaction among customers.
The three models for sale on Microsoft's U.S. website are already on back order, suggesting strong demand, but it is not known how many Surfaces Microsoft has manufactured.
'The fact it's back ordered is indicative that there's consumer interest,' said Michael Gartenberg, an analyst at tech research firm Gartner. 'How Microsoft introduces it, evangelizes it and explains it will determine long term success.'
BALLMER NOISE
Microsoft has not said if it will reveal sales figures for Windows 8 or of the Surface before its next scheduled earnings on January 24. The company tends to trumpet good news and stay silent otherwise.
After the launch of Windows 7 three years ago, CEO Steve Ballmer waited only a month to announce strong sales. A year later, he waited only 10 days to report record-breaking sales of the Kinect, the motion-sensing add-on for the Xbox. But Microsoft has never shared the sales of Windows-powered phones, which have a lowly 3 percent of the market.
If Ballmer stays silent about Windows 8 sales, it might indicate a less than stellar performance.
'I would definitely take it a sign that it's not super, super strong, but I won't take it as something negative,' said Chan at Bernstein, who is expecting 8.3 million Surface sales by the middle of next year.
That averages out at about 1 million a month, a third the rate of the iPad, which notched up its first million sales in 28 days and has now sold more than 100 million units, averaging about 3.2 million a month.
Gartner forecasts that Surface and other tablets running Windows RT will sell about 2.3 million units this year and 9.3 million next year, grabbing about 2 percent and 5 percent of the worldwide tablet market, respectively.
DOOR-BUSTERS
Retail activity will be closely watched. Microsoft will have more than 60 brick and mortar stores open for the release of Windows 8 on Friday, half of them 'pop-up' stores that will stay open for the holiday shopping season.
Third-party retailers are cautiously optimistic.
'We have seen pretty good response to our pre-orders for Windows 8,' said Best Buy Co Inc spokesman Jeff Haydock. 'Quite honestly, I don't know what to expect from Friday. I don't know if there will be lines or not. My sense is it will take some time for people to kind of come into the stores and check it out.'
Best Buy may give some color on how PC sales are going when it reports earnings on November 20.
Wal-Mart Stores Inc, the No. 1 U.S. retailer, said U.S. pre-orders for Windows 8 PCs 'have been better than expected.'
Online retailers Amazon.com Inc, Newegg Inc and TigerDirect Inc have been silent on Windows 8 pre-orders.
The full impact of PC sales on retailers will not be evident until chains report same-store sales for November.
QUICK REACTION
One early indicator of Windows 8's success will be the contents of the online Windows Store. Microsoft has had a harder time drumming up interest among developers for Windows 8, given the risk that there will be fewer users than competing platforms.
Microsoft will not disclose numbers, but there are expected to be 5,000 or so third-party apps available to U.S. users, in comparison with the iPad's 275,000. Some big names such as Facebook Inc will be missing.
In social media, the tenor of comments on the Twitter hashtags #Windows8 and #Surface will give an indication of their reception after Ballmer unveils them both on Thursday.
Many users likely will be shocked by the new design, which dispenses with the Start button and features square tiles for apps.
'Public reaction to the new UI will depend how well Microsoft explains why 'different' is better and teaches how the new experience works,' said Gartenberg. 'That all starts on Thursday.'
BY THE NUMBERS
The ultimate test for Windows 8 will be PC sales.
Industry trackers are expecting a bump for PC sales in the last two months of the year, but not enough to rescue the whole year, which is forecast to dip for the first time since 2001.
Some analysts had expected an uptick in production of laptops ahead of the Windows 8 launch, but PC makers facing an uncertain global economy have been wary about committing.
Chip maker Intel Corp, which is a good gauge of future PC demand due to its position early in the production process, expects the PC business to grow at only half the normal seasonal rate in the fourth quarter.
Chief Executive Paul Otellini recently told analysts he expects to have a better understanding of the success of Windows 8 in 90 days.
Stephen Baker, an analyst at retail research firm NPD Group, is expecting a 10 percent jump in PC sales for November and December over last year, but said comparisons will be difficult given a profusion of new devices and the volatility of year-ago data.
Fourth-quarter PC shipment numbers from research firms Gartner and IDC will not be published until early January, although analysts say PC makers might start to drop hints about demand before then.
'There will likely be many milestones, but very few will ultimately be decisive. The key point is will PC sales continue to shrink or will they experience a boost,' said Al Hilwa at research firm IDC. 'We can probably begin to properly judge that with some ambiguity in January.'
(Additional reporting By Dhanya Skariachan in New York, Jessica Wohl in Chicago and Noel Randewich in San Francisco. Editing by Andre Grenon)
This article is brought to you by COMPUTERS.
Buying guide: How to get, or avoid, Windows 8
NEW YORK (AP) - This week, Microsoft Corp. will release a new version of its Windows operating system, one designed to make desktop and laptop computers work more like tablets. It represents the software company's effort to address the growing popularity of smartphones and tablet computers, namely the iPad.
The new software is a radical departure from previous versions of Windows. The familiar start menu on the lower left corner is gone, and people will have to swipe the edges of the screen to access various settings. There will be a new screen filled with a colorful array of tiles, each leading to a different application, task or collection of files. Windows 8 is designed especially for touch screens, though it will work with the mouse and keyboard shortcuts, too.
There will be several versions of Windows 8:
- Windows 8.
Like its predecessors, Windows 8 will run on computers with processing chips made by Intel Corp. or Advanced Micro Devices Inc. There's a basic version designed for consumers and a Pro version for more tech-savvy users and businesses. The Pro version has such features as encryption and group account management. Large companies with volume-licensing deals with Microsoft will want Windows 8 Enterprise, which has additional tools for information-technology staff to manage machines.
- Windows RT.
For the first time, there will also be a version running on lower-energy chips common in phones and tablets. That version will run on tablets and some devices that marry tablet and PC features. While tablets with Windows 8 can run standard Windows programs, the RT devices will be restricted to applications specifically designed for the system. Borrowing from Apple's playbook, Microsoft is allowing RT to get applications only from its online store, and apps must meet content and other guidelines.
- Windows Phone 8.
While Windows 8 and RT will be out Friday, the phone version won't be available until an unspecified date this fall. Microsoft has an event on it Monday and may announce more details then. Nokia Corp. and Samsung Electronics Co. already have announced plans for new Windows phones.
You can get Windows RT and Windows Phone 8 only by buying devices with the software already installed, while Windows 8 can be purchased as an upgrade as well.
Here's how you can get - or avoid getting - Windows 8:
- Buy a new PC:
Desktop, laptop and tablet computers with Windows 8 already installed will go on sale Friday. Several PC manufacturers including Samsung, Lenovo Group Ltd., Hewlett-Packard Co. and Dell Inc. already have announced details about their new machines, while retailers such as Best Buy Co. have trained staff to explain and demonstrate the new system. Microsoft will also have its Surface tablet with Windows RT out, with a Windows 8 version coming later.
- Upgrade your PC:
Those who have bought a Windows 7 PC (other than the Starter Edition) since June 2 will be able to buy Windows 8 Pro for $14.99. The offer applies to Windows 7 PCs sold until Jan. 31, and the upgrade must be claimed by Feb. 28.
To claim the offer, register the machine at https://windowsupgradeoffer.com . You'll get an email with a promo code, which you can use to get the Windows 8 upgrade online.
Those who bought a Windows PC before June 2 will be able to upgrade for $39.99. You must already have Windows XP with Service Pack 3, Windows Vista or Windows 7.
Those who prefer buying a DVD to upgrade will have to pay $69.99.
Before buying the upgrade, check to make sure your machine is strong enough to run Windows 8. Microsoft lists the system requirements here: http://windowsupgradeoffer.com/en-US/Home/ProgramInfo .
Not sure if you have what it takes? Microsoft has an upgrade tool that will stop you if you try to buy Windows 8 without the requirements. The tool will also warn you of software that might need updates to work on Windows 8. Go to http://Windows.com starting Friday to get started.
If you're upgrading from Windows 7, the tool will let you keep settings, personal files and applications. You can migrate settings and files from Vista and files only from XP. You'll also have the option to start fresh and bring nothing to Windows 8.
- Keep older Windows:
Do nothing if you do not wish to upgrade to Windows 8. After Windows 8 is out, most machines on sale will have that version of Windows.
It will be possible to buy Windows 7 machines or upgrade to Windows 7, though you may have order online and your choices may be restricted to gaming or business-oriented machines.
Microsoft hasn't said what the cutoff date for Windows 7 will be, but expect to be able to buy Windows 7 as an upgrade for another year or preinstalled on a new machine for two more years.
After Windows 7 came out in October 2009, for instance, retailers were still allowed to sell boxed versions of the predecessor, Vista, until October 2010. PC makers were able to sell Vista machines until October 2011.
Microsoft plans to continue providing technical support for Windows 7 until Jan. 14, 2020.
The new software is a radical departure from previous versions of Windows. The familiar start menu on the lower left corner is gone, and people will have to swipe the edges of the screen to access various settings. There will be a new screen filled with a colorful array of tiles, each leading to a different application, task or collection of files. Windows 8 is designed especially for touch screens, though it will work with the mouse and keyboard shortcuts, too.
There will be several versions of Windows 8:
- Windows 8.
Like its predecessors, Windows 8 will run on computers with processing chips made by Intel Corp. or Advanced Micro Devices Inc. There's a basic version designed for consumers and a Pro version for more tech-savvy users and businesses. The Pro version has such features as encryption and group account management. Large companies with volume-licensing deals with Microsoft will want Windows 8 Enterprise, which has additional tools for information-technology staff to manage machines.
- Windows RT.
For the first time, there will also be a version running on lower-energy chips common in phones and tablets. That version will run on tablets and some devices that marry tablet and PC features. While tablets with Windows 8 can run standard Windows programs, the RT devices will be restricted to applications specifically designed for the system. Borrowing from Apple's playbook, Microsoft is allowing RT to get applications only from its online store, and apps must meet content and other guidelines.
- Windows Phone 8.
While Windows 8 and RT will be out Friday, the phone version won't be available until an unspecified date this fall. Microsoft has an event on it Monday and may announce more details then. Nokia Corp. and Samsung Electronics Co. already have announced plans for new Windows phones.
You can get Windows RT and Windows Phone 8 only by buying devices with the software already installed, while Windows 8 can be purchased as an upgrade as well.
Here's how you can get - or avoid getting - Windows 8:
- Buy a new PC:
Desktop, laptop and tablet computers with Windows 8 already installed will go on sale Friday. Several PC manufacturers including Samsung, Lenovo Group Ltd., Hewlett-Packard Co. and Dell Inc. already have announced details about their new machines, while retailers such as Best Buy Co. have trained staff to explain and demonstrate the new system. Microsoft will also have its Surface tablet with Windows RT out, with a Windows 8 version coming later.
- Upgrade your PC:
Those who have bought a Windows 7 PC (other than the Starter Edition) since June 2 will be able to buy Windows 8 Pro for $14.99. The offer applies to Windows 7 PCs sold until Jan. 31, and the upgrade must be claimed by Feb. 28.
To claim the offer, register the machine at https://windowsupgradeoffer.com . You'll get an email with a promo code, which you can use to get the Windows 8 upgrade online.
Those who bought a Windows PC before June 2 will be able to upgrade for $39.99. You must already have Windows XP with Service Pack 3, Windows Vista or Windows 7.
Those who prefer buying a DVD to upgrade will have to pay $69.99.
Before buying the upgrade, check to make sure your machine is strong enough to run Windows 8. Microsoft lists the system requirements here: http://windowsupgradeoffer.com/en-US/Home/ProgramInfo .
Not sure if you have what it takes? Microsoft has an upgrade tool that will stop you if you try to buy Windows 8 without the requirements. The tool will also warn you of software that might need updates to work on Windows 8. Go to http://Windows.com starting Friday to get started.
If you're upgrading from Windows 7, the tool will let you keep settings, personal files and applications. You can migrate settings and files from Vista and files only from XP. You'll also have the option to start fresh and bring nothing to Windows 8.
- Keep older Windows:
Do nothing if you do not wish to upgrade to Windows 8. After Windows 8 is out, most machines on sale will have that version of Windows.
It will be possible to buy Windows 7 machines or upgrade to Windows 7, though you may have order online and your choices may be restricted to gaming or business-oriented machines.
Microsoft hasn't said what the cutoff date for Windows 7 will be, but expect to be able to buy Windows 7 as an upgrade for another year or preinstalled on a new machine for two more years.
After Windows 7 came out in October 2009, for instance, retailers were still allowed to sell boxed versions of the predecessor, Vista, until October 2010. PC makers were able to sell Vista machines until October 2011.
Microsoft plans to continue providing technical support for Windows 7 until Jan. 14, 2020.
iPad mini won't upset low-end market: analysts
(Reuters) - Apple Inc's 'iPad mini' will attract new customers but the higher-than-expected price is unlikely to make it a threat to low-cost tablets such as Amazon.com Inc's Kindle, analysts said, in a muted reaction to the new tablet.
Only a few analysts revise their price targets for Apple's shares ahead of the company's quarterly results announcement on Thursday. The shares were flat at $615 in morning trade on the Nasdaq.
Canaccord Genuity raised its target on the stock to $800 from $797, while Barclays Capital cut its to $800 from $810.
The 7.9-inch mini version of the iPad has most of the functions and features of the full-size $499 iPad but is cheaper by $170.
However, the $329 price for the Wi-Fi only model was higher than many analysts had expected and some said the gadget might struggle to compete with the cheaper Amazon Kindle Fire and Google Inc's Nexus 7, which have prices starting in the $159-$199 range.
The device may also lure buyers away from Apple's flagship 10-inch tablet, they said.
'We were hoping the price would be at least a little lower given its competition is situated as low as $99, with many starting in the $199-$249 range,' Barclays Capital analyst Ben Reitzes said.
His new price target of $800 is more in line with those of other analysts, although most targets are still well above Apple's current share price.
Demand for Google's Nexus 7 and Amazon's Kindle Fire is unlikely to be much affected by the launch of the mini given the significant price gap, Nomura Equity Research said.
On a positive note, the high price made it less likely that the device would eat into Apple's margins, the brokerage said.
Barclays estimated iPad mini sales at more than 5 million units in the December quarter, while Canaccord Genuity forecast sales of 9.25 million units during the three months. Apple sold about 17 million iPads in the quarter ended June.
The iPad mini will help Apple reach a new customer base that may not have been able to afford the higher-end version, Canaccord Genuity analyst Michael Walkley said.
'While we believe these strong sales will come largely at the expense of Apple's competition, we concede iPad Mini will likely cannibalize iPad and iPod Touch sales,' Walkley wrote in a research note.
Despite the cannibalization, the mini should greatly expand the market for iPads, whose sales have exceeded 100 million units in just two-and-a-half years after the tablet was introduced, Needham & Co analyst Charlie Wolf said.
Apple will enjoy a very happy holiday season on its refreshed product line and because of the 'hopelessly backlogged' iPhone 5 orderbook, he said.
(Reporting by Sruthi Ramakrishnan and Supantha Mukherjee; Editing by Rodney Joyce and Sreejiraj Eluvangal)
This news article is brought to you by SAVING MONEY BLOG - where latest news are our top priority.
Only a few analysts revise their price targets for Apple's shares ahead of the company's quarterly results announcement on Thursday. The shares were flat at $615 in morning trade on the Nasdaq.
Canaccord Genuity raised its target on the stock to $800 from $797, while Barclays Capital cut its to $800 from $810.
The 7.9-inch mini version of the iPad has most of the functions and features of the full-size $499 iPad but is cheaper by $170.
However, the $329 price for the Wi-Fi only model was higher than many analysts had expected and some said the gadget might struggle to compete with the cheaper Amazon Kindle Fire and Google Inc's Nexus 7, which have prices starting in the $159-$199 range.
The device may also lure buyers away from Apple's flagship 10-inch tablet, they said.
'We were hoping the price would be at least a little lower given its competition is situated as low as $99, with many starting in the $199-$249 range,' Barclays Capital analyst Ben Reitzes said.
His new price target of $800 is more in line with those of other analysts, although most targets are still well above Apple's current share price.
Demand for Google's Nexus 7 and Amazon's Kindle Fire is unlikely to be much affected by the launch of the mini given the significant price gap, Nomura Equity Research said.
On a positive note, the high price made it less likely that the device would eat into Apple's margins, the brokerage said.
Barclays estimated iPad mini sales at more than 5 million units in the December quarter, while Canaccord Genuity forecast sales of 9.25 million units during the three months. Apple sold about 17 million iPads in the quarter ended June.
The iPad mini will help Apple reach a new customer base that may not have been able to afford the higher-end version, Canaccord Genuity analyst Michael Walkley said.
'While we believe these strong sales will come largely at the expense of Apple's competition, we concede iPad Mini will likely cannibalize iPad and iPod Touch sales,' Walkley wrote in a research note.
Despite the cannibalization, the mini should greatly expand the market for iPads, whose sales have exceeded 100 million units in just two-and-a-half years after the tablet was introduced, Needham & Co analyst Charlie Wolf said.
Apple will enjoy a very happy holiday season on its refreshed product line and because of the 'hopelessly backlogged' iPhone 5 orderbook, he said.
(Reporting by Sruthi Ramakrishnan and Supantha Mukherjee; Editing by Rodney Joyce and Sreejiraj Eluvangal)
This news article is brought to you by SAVING MONEY BLOG - where latest news are our top priority.
Apple's mini iPad spurs muted analyst reaction
(Reuters) - Apple Inc's 'iPad mini' will attract new customers but the higher-than-expected price will come as a relief to low-cost tablets such as Amazon.com Inc's Kindle, analysts said, in a muted reaction to the new tablet.
Few analysts revised their price targets for Apple in the wake of the announcement, with one raising their target and one cutting it.
Apple shares edged up 0.7 percent to $617.75 in premarket trading.
The 7.9-inch mini version of the iPad has most of the functions and features of the full-size iPad but in a smaller package and is cheaper by $170.
'We believe the iPad mini with its $329 starting price for the 16GB WiFi only model will help Apple reach a new customer base, particularly for holiday gifts to teenagers that may not have been able to afford the higher-end iPad,' Canaccord Genuity analyst Michael Walkley wrote in a research note.
He raised his price target slightly on the stock to $800 from $797.
The $329 starting price for a Wi-Fi only 'iPad mini' was higher than many expected and some analysts said the gadget might lure buyers away from Apple's $499 flagship 10-inch iPad, yet struggle to compete with the cheaper Amazon Kindle Fire and Google Inc's Nexus 7, both of which are sold at or near cost.
'We were hoping the price would be at least a little lower given its competition is situated as low as $99, with many starting in the $199-$249 range,' Barclays Capital analyst Ben Reitzes said.
He cut his price target on the stock to $800 from $810, bringing him more into line with other analysts, although the price targets are still well above the current market price for the shares.
While Canaccord estimates that Apple will sell 9.25 million units in the December quarter. Barclays forecast sales of more than five million units.
'While we believe these strong sales will come largely at the expense of Apple's competition, we concede iPad Mini will likely cannibalize iPad and iPod Touch sales,' analyst Walkley said.
(Reporting by Sruthi Ramakrishnan and Supantha Mukherjee; Editing by Rodney Joyce)
This news article is brought to you by CELEBRITY GOSSIP NEWS - where latest news are our top priority.
Few analysts revised their price targets for Apple in the wake of the announcement, with one raising their target and one cutting it.
Apple shares edged up 0.7 percent to $617.75 in premarket trading.
The 7.9-inch mini version of the iPad has most of the functions and features of the full-size iPad but in a smaller package and is cheaper by $170.
'We believe the iPad mini with its $329 starting price for the 16GB WiFi only model will help Apple reach a new customer base, particularly for holiday gifts to teenagers that may not have been able to afford the higher-end iPad,' Canaccord Genuity analyst Michael Walkley wrote in a research note.
He raised his price target slightly on the stock to $800 from $797.
The $329 starting price for a Wi-Fi only 'iPad mini' was higher than many expected and some analysts said the gadget might lure buyers away from Apple's $499 flagship 10-inch iPad, yet struggle to compete with the cheaper Amazon Kindle Fire and Google Inc's Nexus 7, both of which are sold at or near cost.
'We were hoping the price would be at least a little lower given its competition is situated as low as $99, with many starting in the $199-$249 range,' Barclays Capital analyst Ben Reitzes said.
He cut his price target on the stock to $800 from $810, bringing him more into line with other analysts, although the price targets are still well above the current market price for the shares.
While Canaccord estimates that Apple will sell 9.25 million units in the December quarter. Barclays forecast sales of more than five million units.
'While we believe these strong sales will come largely at the expense of Apple's competition, we concede iPad Mini will likely cannibalize iPad and iPod Touch sales,' analyst Walkley said.
(Reporting by Sruthi Ramakrishnan and Supantha Mukherjee; Editing by Rodney Joyce)
This news article is brought to you by CELEBRITY GOSSIP NEWS - where latest news are our top priority.
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