Analyst: PC OEM orders weaker than in the past

We have heard unofficial reports that sales of Windows 8 have been slower than predicted, both from unnamed sources in Microsoft and from retailer Newegg.com. Now, an analyst claims that he has checked into the orders of PC makers for the month of October and found that they are weaker than in the past.

PCWorld.com reports the Brian White of Topeka Capital Markets, used what he called his ODM (original device manufacture) Barometer to check on sales of PCs from companies that actually make the products for companies like HP and Dell. He stated:

With all of the sales numbers out for our ODM Barometer, October sales rose by 2 percent month-over-month and below the average performance of up 5 percent over the past seven years. This is weaker than our preliminary estimate of up 5 percent month-over-month in October and speaks to the continued challenges in the PC market.

The ODM Barometer also showed a year-over-year decrease of 13 percent in October, according to White. He added, "This weakness is unusual given that PCs with Windows 8 and new ultrabook products are ramping."

While PC sales to consumers will still be higher in October compared to a year ago, White did say they will be "much lower than the PC makers originally expected a few months ago.”

Source: PCWorld.com | Image via Microsoft

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This should come as no surprise to anyone. The hackneyed phrase "It's the economy, stupid" says a whole lot. Plus, are there really compelling reasons to trash one's perfectly good Windows-7 computer for a new one with Windows-8 on it? From a profit attempting business standpoint--no.

TsarNikky said,
This should come as no surprise to anyone. The hackneyed phrase "It's the economy, stupid" says a whole lot. Plus, are there really compelling reasons to trash one's perfectly good Windows-7 computer for a new one with Windows-8 on it? From a profit attempting business standpoint--no.

What's Windows 8 got to do with this article? This article is about October when PCs were still shipping with Windows 7.

Please can we stop the reporting of 'Analyst' articles? They just start arguments and hold no factual merit. Might as well say "A member of the forum did some googling and determined X"

Price and availability is a concern, I want to buy the Samsung SmartPC Pro and so far I've been waiting 2 weeks for this device to be in stock on Amazon ¬¬ I'm also interested on the Acer Aspire S7 but it's a bit more expensive

Sales of what? Everyone is waiting for Windows 8 hybrids, Window 8 all in one, Windows 8 touch LCD panels for desktops, and none of the OEMs have delivered them yet
Of course sales will be weaker, they have nothing new to sell :-)

rdmiller said,
Why spend money on same-old, same-old hardware when you can upgrade your existing hardware for $40?

This is true, specially when hardware requirements have pretty much stayed the same since vista.

I'm still using my core 2 duo desktop which I bought in, late 2007 was it I believe.
Recently I upgraded to 4 GB memory and a geforce 560. All of my hardware already have or soon will have windows 8 drivers.

Nothing to see. Windows 8 entered a slowing market and will be slow to catch on. It's not Vista. Vista had legitimate issues. Windows 8 has a learning curve and that's it. It's better on every single level.

I wouldn't be surprised if they actually did add an option to enable the start button though. It isn't needed but if it shuts people up then so be it.

Holding off on 3 purchases because the hardware promised on windows 8 release date is -still- not available to order(ATIV Smart PC Pro). Don't know about anyone else.

If someone needs a PC I don't think they will mind if it's Windows 8, but I have still seen printed advertisements from OEM's like Dell who still 'recommend Windows 7' so I don't think the decline in sales is due to Windows 8.

Gone are the days where people HAVE to use a computer to send an email or check a website - they can just buy a phone contract and do it all there, or get something else that does it.

Windows 8 has played also a role in this... I mean, if many people dislike the OS, then many people wouldn't want a pc....

Arceles said,
Windows 8 has played also a role in this... I mean, if many people dislike the OS, then many people wouldn't want a pc....

This article talks about sales in October when the PCs were still shipping with Windows 7. Windows 8 was release on October 26th.

expect the trend to accelerate as tablets wipe out the traditional PCs. this is why windows 8 is needed. without it, the trend would still go in the downhill direction except there would not be an OS from MSFT to take over after the fall of the PCs.

if windows 8 wasn't around, you could expect this trend to be twice as strong or worse, obliterate the PC OEMs within a few years.

windows 8 will save the industry. it is too bad so many people are stuck in the past and see windows 7 as something other than the museum relic that it is.

Queue the "Windows 8 sucks", "It is failing/will fail", "They can't design a proper UI", "I can't use start screen on my PC", "I want aero back", etc. comments.

eddman said,

Exactly. Wait 6-12 months and we'll know.

that is a stupid way to gauge it. Windows 8 is all about the inevitable transition away from desktops and laptops. This is a gradual but unstoppable transition so windows 8 will have a slow and gradual acceptance. expect year 1 sales to be slow, with increasing acceleration and fall in marketshare of traditional PCs.

by the time 9 or 10 rolls around, traditional computing will be seen as a niche market and 8 was the first step into the inevitable switch to mobile.

neonspark said,

Windows 8 is all about the inevitable transition away from desktops and laptops.

Windows 8 is all about trying to drive a transition away from windows. However it will probably result in a transition away from Windows.

Well, this has been known for some time now.

The mobile computing foray into consumer's life has been steadily growing. Thinking that this trend would have no effects on traditional computing devices acquisitions was simply dumb.

The slow paced transition is still going on.

TheCyberKnight said,
Well, this has been known for some time now.

The mobile computing foray into consumer's life has been steadily growing. Thinking that this trend would have no effects on traditional computing devices acquisitions was simply dumb.

The slow paced transition is still going on.

absolutely. this is why so many people are so wrong about windows 8. They see it as a change that was not needed when all the writing is in the wall: traditional computing is changing in fundamental ways.

Windows 8 merely reflects the inevitable: PCs are dying, tablets are king. Windows 7 will be killed by the death of the PC, not windows 8.

neonspark said,

absolutely. this is why so many people are so wrong about windows 8. They see it as a change that was not needed when all the writing is in the wall: traditional computing is changing in fundamental ways.

Windows 8 merely reflects the inevitable: PCs are dying, tablets are king. Windows 7 will be killed by the death of the PC, not windows 8.

Agreed. Although I can understand why its so hard for powerusers to see it this way. For them a home desktop PC will also be required. But many consumers can do without, mail and surfing being 95% of their usage.

However every now and then people still need to type a letter so they need a PC as well. Which is why I think Microsoft's focus on touch first hybrids will eventually pay off. Perhaps not in a 90% marketshare but it will allow them to hold a large portion of the consumermarket. In the long term they can succeed at making 'Windows' the serious tablet OS. The one people need if they want to replace their desktop with a tablet. Something that many consumers who dont have a tablet yet will find an attractive offer, not everyone can afford two PCs.

But for now it will remain under the radar and under assault by powerusers. Perhaps rightly so, although I love the UI and find my productivity increasing, it does take some time to adapt. On top of that there are still some elements that need improvement before the modern UI can be a full replacement of the desktop UI.

We'll see how it plays out but I don't think Microsoft is as crazy as some people might think.