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PC Vendors Uneasy about High Pricing of Windows 8 PCs

It looks like PC vendors are not overly sold on the impact of Microsoft’s upcoming Windows 8 OS release since the price of both the software itself and necessary hardware upgrades could bump PC pricing into a level that most mainstream PC customers would balk at.

In a recent Digitimes article, the relatively expensive touchscreens that Windows 8′s Metro interface work with as well as pricey Interl processors that power ultrabooks pose problems for PC makers. According to Digitimes’ sources, Intel is not willing to cut its profits in order to lower CPU prices. Additionally, brand name PC vendors, working under operational difficulties, are not willing to sell their wares at a loss. It is worth keeping in mind that notebook PC ODMs already operate with weak profitability. Consequently, while ultrabooks are seen as key boosters of consumer demand, plans to produce ultrabooks might get postponed.

If Digitimes’ information turns out to be accurate, it looks like at least some PC makers are simply not ready for the vision behind Microsoft 8. They do not appear to have the manufacturing hardware installed that will deliver what Intel and Microsoft are promising the market. The Digitimes article mentions the issue of “panel shaking” is still a problem when a vertical screen is used as a touchscreen. There are also issues with both rotatable and slide touchscreens. Another key hardware hurdle vendors have to face is the looming necessity of high-resolution screens that go beyond the current 1080p resolution. The article did not mention this, but this is the next hardware evolutionary step that PC vendors have to face.

In conclusion, Digitimes said that Windows 8 demand may be as robust as it is made out to be. The logical projection is that Windows 8 might not be a big factor in 2012 but it will flourish in 2013.