"Wintel Alliance" faces many challenges

Computer Shop News Although Windows 8 related products became the biggest highlight of this year's Taipei International Computer Show, the rift between Microsoft, Intel and Taiwan computer manufacturers can not be ignored, "Wintel Alliance" is facing many challenges. The following is the full text of the article:

Wintel Alliance —— Microsoft, Intel and Taiwanese companies producing production-related devices —— are making a big bet for Window 8. At last week's Computex, the Wintel Alliance was largely a joint attack, but it was discovered from the show that Microsoft, Intel and Taiwanese manufacturers had a very close relationship because of this scale. There was a crack in the huge gamble. The bet of this gambling is the future of the world's largest software developer, the fate of the world's largest chip makers, and Taiwan's computer machine and component manufacturers. At the end of the gambling is Microsoft, Microsoft is porting the Metro interface first launched on Windows Phone to tablets, laptops and desktops. Although Windows 8 does not abandon the traditional mouse interface, Microsoft's focus is clearly on the Windows system based on touch screen optimization, intent to fight against Google's Android system and Apple's iOS system. The other end of the gambling is Intel, Intel has long been a Microsoft partner in the PC field. Today, with the increasing share of mobile devices, Intel has found its position to decline. It must also compete with ARM in Microsoft's Windows field. ARM chips are more suitable for tablets running Windows 8 systems. There are also a series of Taiwanese computer makers on the gambling bureau, which are trying to integrate Microsoft's new operating system and Intel's chips to make a profit. From the end of the weekend at the Taipei International Computer Show, we can find the ingenuity of this arrangement —— the different pricing, marketing methods and ecosystems required to create a new version of Windows. “Does this become an important recovery? This will at least help curb the tablet's eroding of the notebook market," UBS analyst Jonah Cheng said. Innovative power transfer Although Microsoft is still strong in the traditional PC field, resources and innovation have been transferred to mobile devices — — Apple's iPhone and iPad led the shift. According to data from Gartner Research, global PC shipments fell by 1.4% last year, and this year's growth is expected to be only 4.4%. In comparison, global tablet shipments rose from 19.4 million units in 2010 to 68.4 million units last year, which is expected to rise 85% this year. Gartner expects that the iPad will still account for more than 60% of tablet shipments this year. — Windows system tablet market share is only 4%. Therefore, the adjustment of the Windows system to make it across the traditional PC and tablet market has become Microsoft's only choice. As a result, many users who are familiar with the Windows interface for a long time may choose to switch to Windows tablets. Intel needs to think deeply about its chip business. Intel chips are more focused on data processing than on mobile devices that are more concerned with power consumption. At the same time, Intel is pushing the ultrabook & mdash; — thinner laptop. The first Ultrabook devices were similar in appearance to Apple's successful Macbook Air, but they were not very successful. Intel is now offering better chips and better materials for Ultrabooks, as well as innovations in the design of sliders, folds, etc. & mdash; it hopes to blur the line between notebooks and tablets. However, it all depends on the practices of computer manufacturers and component suppliers. It is these manufacturers who decide how much profit they can get and whether they want to produce these devices. The tension has thus appeared —— Microsoft wants every Windows device to have as much functionality as possible, while Taiwanese manufacturers have a tradition of cutting costs. Frank Gillett, principal analyst at Forrester, a market research firm, said, "Microsoft's life and death depends on OEMs' choice of Windows 8 features. & rdquo; Intel Inside Intel is pushing OEMs to add eye-catching features such as touch screens to Ultrabooks, hoping to push Ultrabooks to higher-end markets and differentiate marketing with Macbook Air. Intel even signed an agreement with touch-screen manufacturers to purchase additional capacity to ensure OEM touchscreen supply. As a result, Intel's emphasis on quality and functionality has enabled Ultrabooks to break through the $1,000 mark. Gillett said that the optical touch screen would add $100 to each Ultrabook. Intel is trying to justify rising costs, and the company says that while it can easily provide a lower-cost design, it believes the market needs more and more sophisticated equipment. “We can reduce the cost of Ultrabook to $399, but we don’t think this is the consumer’s need,” said Intel Senior Vice President Tom Kilroy. The various devices at the Taipei International Computer Show show this differentiation strategy and Intel's ambitions. ASUS's dual-screen ultrabook "Taiji" has a display on both sides, which has become the focus of attention at the show. Although most vendors seem to be following Intel's design recommendations and Windows 8 functional requirements, the practices of different vendors are still different. For example, some products use plastic hinges, so the separation of the upper cover and the keyboard cannot be achieved. Some models are still not available in the glass cover, meaning they are still not finished. Although the Taipei International Computer Show became the showcase for Windows 8 devices, there are still many unsolved problems before the new Windows release. Reasonable pricing? Who will pay, who to pay, and why pay is a problem. Equipment manufacturers must pay Microsoft for the purchase of Windows 8, and pay Intel for the chip. These two parts add up to one-third of the total cost of Ultrabooks, which Gillett says is the most profitable place. Frost & Sullivan analyst Serene Chan said that Microsoft plans to charge $100 for each Windows 8 license, a significant increase from the Windows 7 era. In contrast, Google's Android system is free. “The cost of licensing OEMs must pay to Microsoft is a big obstacle,” she said. Equipment manufacturers say they still want to be able to convince Microsoft to lower the license price. A corporate executive said, “We are a large vendor, and perhaps this will enhance our voice in licensing fees and cross-payments. ” Intel said that although their quotations are public, the price for specific manufacturers is still confidential. Intel vice president Kilroy said the company's investment in chip manufacturing is hundreds of billions of dollars, and investment in research and development is close to so much. “ Therefore, we will not apologize for the fact that we have leading technology and we hope to get a return. This business model works well," he said. Restructuring the Wintel model In the industry's shift to a tighter ecosystem that combines developers, cloud services, content, hardware vendors, operating system developers and retailers, Taiwanese computer makers can only hope for Microsoft and Intel, I hope they can bridge the gap in the Windows world, the Windows world looks a bit outdated. For example, can Microsoft create an attractive ecosystem for developers like Google, Amazon and Apple? Microsoft has launched its own app store, but we don't know what Microsoft is going to do for apps that don't use the Metro interface. Richard Edwards, an analyst at IT consultancy Ovum, said, "They have built an environment where people can easily develop, test, and sell Metro applications. ” As for the performance of these applications after release, it depends largely on the marketing method. Marketing is also a key issue when Windows devices may turn to higher-end customers. These will all become the work of Microsoft and Intel. After the manufacturer produces the relevant equipment, it can only rely on the market influence of Microsoft and Intel to attract users. Wang Zhentang, chairman of Acer, told reporters at the Taipei International Computer Show that he had told Ballmer about the concerns. “I went to Seattle last month, and I told Ballmer that they had to fight a strong marketing campaign. ” Wang Zhentang said. He revealed that Ballmer told him that he had been nominated by Forbes as the worst CEO of 2011. Wang Zhentang said to him, “Despite this, you still have to get up and fight. & rdquo; Ballmer's response is that Microsoft will work hard. Microsoft is likely to do its best. But the gap between Microsoft and Intel is a problem. The current Taipei International Computer Show showed a direct divergence of interests between the two. Microsoft is now very close to ARM, and has launched a Windows RT system dedicated to ARM chips, but the related equipment has rarely appeared at this exhibition. These devices will be available later, but Taiwanese hardware manufacturers have not had a very successful history on tablet devices, and they are also likely to face increasing price pressures. IMS Research said on Friday that Apple's competitive pricing strategy has reduced the average price of tablets by 21% in one year, further reflecting this pressure.