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HP to ship PCs with Windows XP

New units to go out next week, but analyists are unimpressed

THE COMPANY PLANS to begin shipping the systems next week. In a move following Gateway, HP also will take preorders on custom-configured systems starting Sept. 21, with anticipated delivery as early as next Monday. The company also expects to begin selling new Windows XP systems in retail stores on the same day.

Microsoft has cleared PC makers to begin selling new Windows XP desktops and portables starting Sept. 24, about one month before the new operating system's Oct. 25 official launch.

As HP and its competitors prepare for the first salvo of Windows XP computers, analysts are increasingly concerned the new operating system will have negligible to no impact on holiday PC sales. If consumer confidence plummets, as some analysts predict following last week's devastating terrorist attacks in New York and Washington, the Grinch, not Santa, may greet many retailers this holiday season, analysts warn.

"People aren't going to go out and buy new PCs for the features in XP. It's just not going to happen," said Technology Business Research analyst Brooks Gray. "There is a large amount of people feeling the impact of the economy right now, myself being one of them. Then you have the saturation of the PC market. The drivers aren't there for people to go out and necessarily purchase a new PC." Even before last week's national tragedy, analysts were taking a grim view of holiday PC sales, even as Microsoft, Intel, PC makers and retailers prepared to launch a $1 billion Windows XP marketing blitz.

News source: msnbc.com

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