Windows 8 touchscreen devices to cost more, Dell says
Windows 8 PCs and laptops with touchscreens will cost a bit more to buy, Michael Dell says
IDG News Service - Touchscreen laptops and tablets with the upcoming Windows 8 OS will be priced higher than their non-touchscreen counterparts, Dell's CEO said on Tuesday.
Dell will offer a full complement of Windows 8 products when Microsoft launches its new OS, CEO Michael Dell said during the company's quarterly earnings call. The touchscreen Windows 8 products will occupy higher price bands, which could mean higher profit margins for Dell, he said.
"Unlike other Windows transitions, this is a transition where you are going to need a new PC," Michael Dell said, adding that touch capabilities could drive more people to buy Windows 8 tablets and PCs.
Microsoft hasn't provided a release date for Windows 8 but analysts expect its release later this year. Lenovo has said it will sell a ThinkPad tablet with Windows 8 when the OS is launched.
Despite excitement around the touch interface, however, the upgrade cycle to Windows 8 won't match that of Windows 7, especially in the enterprise, Dell said.
"Corporations are still adopting Windows 7, so we don't think there will be a massive adoption of Windows 8 early on," he said. It also remains to be seen if buyers will prefer tablets over PCs, he said.
The computer maker has been trying to reduce its dependence on sales of consumer PCs, where profit margins are lower, and is trying to sell more higher-priced systems, such as its XPS PCs. Dell's mobility revenue in the quarter just ended declined by 10 percent, while desktop revenue declined by 1 percent.
Its PC business underperformed as demand slowed down and more consumers opted for tablets and smartphones, Brian Gladden, Dell's chief financial officer, said during the call. Dell has shelved its consumer tablets and smartphones over the past few quarters, keeping only its enterprise tablets.
Dell's PC revenue also dropped below expectations because it didn't participate in the market for low-margin, entry-level PCs, which were a big chunk of PC sales for the industry overall, especially in emerging markets such as China.
Falling prices for memory and LCDs, and the normalization of hard drive supplies, favored companies selling those low-end systems, which in turn put pricing pressure on Dell's business.
The hard drive issues caused by flooding in Thailand last year have been resolved and drive prices will fall as the year progresses, Gladden said.
"That's behind us," he said.
- Why Projects Fail CIOs are expected to deliver more projects that transform business, and do so on time, on budget and with limited resources.
- The New Business Case for Video Conferencing: 7 Real-World Benefits Beyond Cost-Savings This whitepaper provides insight into the value of video conferencing in today's business environment, and how organizations are using visual collaboration to find...
- Gartner Magic Quadrant for Client Management Tools The client management tool market is maturing and evolving to adapt to consumerization, desktop virtualization, and an ongoing need to improve efficiency.
- Audit Ready and Asset Optimized: The Solid Promise of an Intelligent Software Asset Management Solution In this paper Frost & Sullivan examines the benefits of enterprise-grade Software Asset Management solutions, and how these solutions serve as the convergence...
- Redefine Your IT Operations: Remote Office IT Has Never Been Simpler Join us to see why PC Pro named Dell PowerEdge VRTX the "2013 Server of the Year." PowerEdge VRTX may be just what...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All Hardware White Papers | Webcasts