The run-up towards Microsoft’s expected launch of its next-generation Vista software line and other factors are expected to cause a slowdown in PC sales in 2006, according to a new report from Lehman Brothers.
The Investment banking firm Lehman Brothers ha lowered its PC unit forecast to 9.8 percent from 12.4 percent in 2006 and decreased its revenue forecast to 1 percent from 5 percent this year. “We are updating our PC forecast based on our recent trip to Asia and other channel checks, which indicate that notebook PC sales are running below normal seasonality in the March quarter,” said Harry Blount, an analyst with Lehman Brothers, in the report.
“In addition, our desktop forecast in 2006 reflects the possibility of a pause in front of the Vista launch,” he said, saying that Microsoft’s software introduction is slated for October 2006. Vista is the next generation operating system from Microsoft. Lehman Brothers also lowered its 2007 PC revenue estimate to 1 percent from 4 percent and its unit estimate to 10.5 percent from 10.9 percent.
“However, our 2007 unit forecast includes an upward desktop unit revision (to 6.3 percent from 0.3 percent) due to the potential benefits of Vista post-launch and a downward notebook revision (to 18.2 percent from 27.7 percent) due to difficult year-over-year comparisons,” Blount said. Some see a rise in chip sales due to Vista. Vista is set to drive NAND flash memory sales in the personal computer, rapidly increasing demand for the non-volatile memory, according to Samsung Electronics Co. Ltd.
