A Silver Lining
“The bad Back-to-School period left a lot of inventory in the channel, which had a real impact on the initial sell-through rates for Windows 8,” said Baker. “The strong performance of Windows 8 notebooks with touchscreens, where Windows 8 truly shines, offers some reason for optimism. These products accounted for 6 percent of Windows 8 notebook sales at an average price of $867 helping to re-establish a premium segment to the Windows consumer notebook market.”
The average selling prices on Windows computing devices also jumped to $477 this year, compared to $433 last year. Windows 8 notebooks have seen an increase of almost $80.
CHEAT SHEET Analysis: Will Windows 8 Provide a “Catalyst for Microsoft Shares?”
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. Unfortunately, the NPD report is another confirmation that “demand for Windows 8 is not that good right now,” as stated by Asus CFO David Chang recently. Microsoft is still one of the largest companies in the world, with a strong balance sheet and hefty dividend, but its attempt to ignite the PC industry with its new operating system comes at a time when consumers are simply demanding other products from the likes of Apple (NASDAQ:AAPL) and Samsung. Investors looking to go long Microsoft will need to be patient with the company’s Windows 8 effort.
Investor Insight: Moody’s to H-P: Apple is Eating Your Lunch