Intel, which is widely considered in the technological universe as the ally of Microsoft, recently recorded subpar third quarter results given the lackluster PC data as of late.
However, the big surprise is their projected earning is significantly low projected earnings for the fourth quarter of 2012 – the period the chip company is expected to gain a considerable amount of money because of the launch of Microsoft’s Windows 8.
Based on the past sales trends, the demand for personal computers will increase simultaneously with the release of a new operating system. But Intel’s mediocre sales prediction for the fourth quarter of their fiscal year only casts more doubts on the capability of Windows 8 to generate enormous amount of money in the tech market.
Sensing the growing influence of rival Apple in the device and service market, Microsoft has developed a new generation of personal computers that features touch capabilities and provides more tablet- and smartphone-like features. Nevertheless, the software company is a little bit about their chance of stirring significant interest in a market dominated by Apple and Android-enabled Samsung.
In an interview with Cnet.com, Intel Chief Executive Paul Otellini gave his take about the launch of Windows 8 and Intel’s next plan to offset the possibility of losing more money.
“Our customers are taking a cautious inventory approach in the face of market uncertainty and the timing of the Windows 8 launch,” said Otellini, who also predicts Intel fourth-quarter revenue to drop by 2 percent from the previous year.
He added that he’s “very excited” and “very optimistic” about the operating system, but Windows 8 isn’t yet igniting PC demand.
“The darn thing hasn’t even launched yet,” Otellini said. “We’ll know a lot more about this 90 days from now.”
Windows 8 has long been considered as the savior of Hawlett-Packard, Dell, Acers, and PC makers that have been badly hurt with emergence of Apple’s iPad.
“Nobody has any idea what PCs are going to do this holiday season,” Evercore analyst Patrick Wang said. “Nobody knows the impact of Windows 8 … but expectations are pretty low. Intel’s (original equipment manufacturer) partners clearly are showing zero conviction by their lack of build at this point.”