'Windows 8 fails to boost demand for PCs'

A senior Samsung Electronics executive said Friday the launch of Windows 8 has failed to bolster demand for PCs and he does not expect the PC industry to rebound soon.

''The global PC industry is steadily shrinking despite the launch of Windows 8. I think the Windows 8 system is no better than the previous Windows Vista platform,’’ said Jun Dong-soo, president of Samsung’s memory chip division, in a meeting with reporters at the COEX InterContinental Hotel in Seoul, Friday.

The executive stressed there was no expected boost to PC sales due to the failure of the Windows 8 platform and forecast the PC industry would gradually phase out.

''MS’s rollout of its Windows Surface tablet is seeing lackluster demand,” he said.

“Meanwhile, previous vigorous pitches by Intel and MS for thinner ultra-books simply failed and I believe that’s mostly because of the less-competitive Windows platform.’’

The Surface tablet runs on Windows RT software, a cheaper version of Windows 8.

In line with the negative outlook in the global PC industry, Jun said Samsung Electronics is heavily cutting its production of conventional memory chips, for which the market is volatile and cyclical, and opting to produce more mobile chips for tablets and smartphones.

Data from market research firm IDC cut its growth estimate for PC shipments this year from a prior projection of 2.8 percent growth to 1.3 percent or 345.8 million PCs, citing the rise of tablet PCs and an ''underwhelming reception to Windows 8,’’ which went on sale Oct. 26 of last year.

Jun questioned the recent price rises of conventional memory chips even though the PC industry is declining.

''It’s really hard to understand price increases of traditional PC chips amid a bearish market,” he said. “Samsung does not manipulate the chip prices. This situation is surely unhealthy.’’

Micron Technology of the United States is the leader in the global computer chip market for PCs with a 51 percent share, followed by SK hynix with 31 percent and Samsung with 15 percent, according to market research firms.

Asked about this year’s investment plans, Jun said the company is mulling the possibility of investing more on facilities, but that would only be done after checking consumer demand for Web-connected products, including smartphones and tablets.

''The market will see a supply-and demand balance in the second quarter and Samsung expects more demand in the latter half for mobile DRAMs, which are more profitable than conventional chips,’’ he said.

He confirmed the company’s March 14 launch of its Galaxy SIV smartphone in New York and said he is amazed by the high level of expectation for the launch, given that Apple’s iPhone 5 is not doing so well in sales.

''Sony, Taiwan’s HTC, Nokia and LG Electronics are very aggressive in their smartphone businesses, increasing the demand for mobile DRAM chips. But we should check out whether the demand is real or false. That’s why Samsung is hesitating to finalize this year’s investment.’’

Jun was named the eighth chairman of the Korea Semiconductor Industry Association (KSIA), replacing outgoing chairman Kwon Oh-chul, who also recently offered to resign from the position of CEO of SK hynix, the chip-making affiliate of the SK Group.

http://koreatimes.co.kr