Intel-Microsoft synergy seen to boost PC sales

Synergy between new technologies from the world’s top chipmaker Intel and software giant Microsoft may put the brakes on the decline in the PC market, according to industry officials.

The introduction of Microsoft’s Windows 8.1 in August, combined with Intel’s recently released fourth-generation Haswell processor, may boost PC sales that have suffered because of the smartphone and mobile device boom over the past five years, the officials said.

Microsoft is expected to release its latest operating system to PC manufacturers in August, and consumers will be able to access the final product by October, according to local news reports.

“We’ve gotten a lot of customer feedback in order to make this version more user-friendly with an array of improvements, such as the comeback of the start button and an updated mail application,” said an official from Microsoft Korea.

With the diversification of smartphones and mobile technologies over the past five years, the demand for PCs has continuously declined. 

According to market research firm Knowledge Research Group, the size of Korea’s PC market last year stood at 2.4 trillion won ($2 billion), down 6.5 percent from 2011.

KRG predicts that the domestic PC market will continue to experience a contraction with total PC sales amounting to 2.2 trillion won this year and around 2 trillion won in 2014.

In a glimmer of hope for PC makers, Intel’s new Haswell processor has stirred excitement among both manufacturers and users, according to an Intel Korea official.

The world’s major PC makers such as Hewlett-Packard, Lenovo and Dell, as well as Korean electronics giants Samsung Electronics and LG Electronics, all rushed to acquire Intel’s new processor, expecting a sales boost in the second half of this year.

Compared to the previous generation, the fourth-generation Intel Core Haswell processor is 30 percent smaller in size but provides twice the battery efficiency.

The latest Windows 8.1 is expected to support a more than 200 pixels-per-inch display and feature improved multitasking capabilities.

Samsung already showcased last month the convertible laptop Ativ Q, built with both Intel’s latest Haswell processor and the Android operating system.

LG Electronics also plans to reveal a hybrid 2-in-1 laptop equipped with both the latest Intel processor and Windows 8.1 later this year.

“We expect that 11 different PC models from seven different companies will be released by the end of this year,” the Intel Korea official said.

The sales trend for the smartphone market, on the other hand, is expected to shift toward the distribution of more affordable models here in Korea, according to industry officials.

“This shifting trend toward more affordable smartphones will definitely have a negative impact on the sales numbers for Samsung, LG and other companies,” an industry expert commented, declining to be named.

The fierce price competition coupled with low profitability of more luxurious models has already induced Samsung and other smartphone makers to develop and distribute devices at cheaper prices in Korea.

By Kwon Bum-joon (bjkwon@heraldcorp.com)