As Microsoft is about to launch its biggest product in a decade on Thursday analysts and PC makers are speculating over the benefits from a refresh of hardware lines next year. Many industry players believe new software will help boost sales in the IT sector as customers will be more inclined to purchase updated machines.
While some experts say Windows 7 may have a short-term impact on PC sales to consumers businesses have a cautious mood preferring to look to 2010 while abstaining from purchase for a time and keeping to an observer position.
"Vista was so bad that nobody moved to it," said Needham & Co analyst Richard Kugele.
"Now, with the operating system no longer being a stumbling block, you can actually deal with the hardware problem and be comfortable that the OS isn't an issue."
PC vendors like Dell and HP are likely to start their refresh lines irrespective of Microsoft’s offers in light of the need to replace old hardware as budgets dropped during the recession. Still it is no certain how robust the sales will be.
Gartner research group makes a forecast that the PC sales will increase by 10% in 2010 with 13% growth in 2011. Positive reviews for Windows 7 are expected to stimulate business consumers.
To date only 10-15% of corporate users shifted to Vista with the remnant using Windows XP platform. Experts expect that the whole computer making industry starting from chipmakers like Intel Corp and Advanced Micro Devices to disk drive makers like Seagate Technology will benefit from a revamp in the PC manufacturing.
"They have to replace these aging machines," said Gartner analyst Mikako Kitagawa, adding that Windows 7 might accelerate the upgrade cycle for corporations.
Goldman Sachs predict a 4% growth to 320.4 million units in IT spending during 2010 with 9% increase in PC unit.
PC vendors show more favor to Windows 7 after mostly negative experience with the much-maligned Vista platform.
Acer, whose rise to No. 2 in the global PC rankings has been fueled in part by cheap netbooks, sounded an upbeat note.
"We are expecting double-digit growth (both worldwide and in the United States) in this holiday quarter," said Ray Sawall, senior manager of product marketing for Acer America.
In the consumer market, Windows 7 should provide a marginal boost. Analysts say buyers do not prioritize operating systems while PC shopping, focusing more on hardware and price.
"I don't think people will go out and buy a new PC because they want Windows 7. It will help, but it won't be a primary factor," said Jay Chou, an analyst with research firm IDC.