The big news in October will without a doubt be Microsoft-related: Windows 8 and the Windows Phone 8 launch are coming at the end of the month. However analysts like Topeka Capital’s Brian White are warning investors to tone down their expectations.
The reason? On his travels to Asia meeting with suppliers, White reports on overwhelmingly negative sentiment. After October and November’s ramp up in device manufacturing, facilities are expected to go nearly idle in December.
Expectations are actually for late 2013 to be the time when Windows 8 might start getting more traction. The report is mostly centered on PC shipments, but this general sentiment carries over to mobile devices running on Microsoft’s platform as well. Check out the report below:
Windows 8 Expectations Plummet and PC Trends to Remain Difficult. The sentiment around Windows 8 was overwhelmingly negative during our trip as the supply chain is experiencing little life ahead of the October 26 launch. Although October is expected to be the sweet spot for the notebook ramp for Windows 8, and further follow through is likely in November, we were warned of idle facilities in December. One of our contacts does not expect Windows 8 to be material until the second-half of 2013. Similarly, the enthusiasm around the Ultrabook ramp has also deteriorated as the cost structure remains too high under Intel's (INTC-$21.48: NR) specifications. Given these disappointments, we believe the PC industry is headed for a muted December quarter and well below the ramp expected with new products. In our coverage universe, Dell (DELL-$9.69: Buy) has the most exposure to the PC market at 50% of sales, followed by Hewlett-Packard (HPQ-$14.41: Hold) at 29%.
source: Business Insider