ON THURSDAY, AT long last, Microsoft will deliver Windows 7, the eagerly awaited new version of its flagship operating system. Win 7 has been getting enthusiastic reviews, and both personal-computer makers and chip manufacturers are all atingle at the prospect that the software will trigger a wave of new-computer purchases by consumers and businesses alike.
As I noted last week in this space, the thinking among bullish tech investors is that most PC users fall into one of two camps: Vista users, who hate their version of Windows, and XP users, who opted not to buy the dreaded Vista and now make do with an eight-year-old OS. The optimists on the outlook for PC sales think we are on the verge of a major replacement cycle.
Intel (ticker: INTC) CEO Paul Otellini last week told investors on a post-earnings conference call that he wouldn’t argue with forecasts that 2010 could see PC units increase 10% or more. One of his reasons is the idea that the arrival of Microsoft’s (MSFT) Windows 7, combined with whizzy new Nehalem-class processors from Intel, will make the purchase of PCs practically irresistible. Speaking at an event in Santa Clara, Calif., last week, Dell (DELL) CEO Michael Dell said he sees “a very powerful refresh cycle” coming. (I covered Dell’s talk live on my Tech Trader Daily blog, if you want the full scoop on what he said.) In particular, Dell told the crowd that he has been using Win 7 for some time, and that when you combine the new operating system with some of the those nifty new Intel chips, and then add in Office 2010, the pending version of Microsoft’s productivity suite, “you will love your PC again.”
