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Demand for personal computers still erratic, outlook unstable

By Noel Randewich and Bill Rigby SAN FRANCISCO/SEATTLE (Reuters) – Improved demand for personal computers after years of declines may not last as emerging markets remain weak and recent corporate upgrades in the United States and Europe may prove fleeting. The latest sign that the PC market’s stability could be short-lived came from technology distributor Synnex Corp. Its shares have slumped 16 percent since Chief Executive Officer Kevin Murai warned earlier in July that increased demand was already waning from companies buying new computers to upgrade their operating systems after Microsoft Corp stopped supporting Windows XP in April. Investors have pushed shares in PC mainstays Microsoft and Intel Corp and parts suppliers such as Seagate and Western Digital Corp to decade- or record-highs, partly on bets that the global slump in PC demand that began with Apple Inc’s launch of the iPad in 2010 may have hit bottom. While up to a quarter of the world’s PCs still employ the 13-year-old Windows XP, it is unclear how many will choose tablets or Apple and Google Inc “Chrome” computers over PCs, rather than upgrade to newer Windows versions.

Quoted from Demand for personal computers still erratic, outlook unstable on Gadgets News Headlines – Yahoo! News

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