Intel Corporation (INTC)’s CEO Not Flustered By Microsoft Corporation (MSFT)’s free Windows 10 Upgrade

There have been discussions about how the free Windows 10 updates will hurt PC Sales as it would let the majority of users obtain the upgraded operating system without needing to buy new hardware machines. This is bad news for Intel Corporation (NASDAQ:INTC) whose PC chips make up a big portion of its sales.

However, Intel’s CEO Brian Krzanich wasn’t flustered regarding the forthcoming free Windows 10 upgrades. In his view, customers still need to acquire a new PC to fully leverage all the best functionality of Windows 10.

According to him, the standout features of Windows such as facial log in, the doing away with passwords, the touch usages of gaming will only run on PCs that have the latest features. That along with products such as Skylake will result in Windows 10 upping the PC market.

Skylake, Intel’s state-of-the-art chip has new features such as streaming of mobile content to TV and longer battery lives. As per Intel, Skylake will be launched in the second half of 2015.

Krzanich attributed the drop in PC sales to macroeconomic conditions and consumer sentiment. He said that PCs were linked with GDP. There has been a slowdown in global GDP growth particularly in places such as China, which had experienced significant growth in PCs.

He added that there’s always a waiting period before a new product such as Skylake along with a new OS such as Windows 10 is launched. All such things together made 2015 weaker in the PC space than expected.
Krzanich opined that Intel’s PC sales will be flat over the long term. However, he expects other businesses to compensate for losses in the PC market.

Last week Gartner predicted that global PC shipments will decrease by 4.4% this year after experiencing a 9.5% decrease in the second quarter. Krzanich went on to say that Intel anticipates the launch of Skylake, Microsoft’s Windows 10 and new OEM systems will bring enthusiasm to client computing in the second half of 2015.

Sources: businessinsider