Maybe Microsoft (MSFT) CEO Steve Ballmer was right. Don’t get too excited about Vista too early in the game. Microsoft’s stock has not been the same since. The stock is down 8% this year, and Ballmer’s comments have something to do with that.
Now investment bank W.R. Hambrecht is saying there is little evidence that Vista is improving the sales of PCs, at least not in this quarter. As a matter of fact, the research "says a subset of potential buyers is holding off, waiting for Vista to become more stable".
The revelation, if true across a broad segment of the PC market, may be bad news for companies like Hewlett-Packard (HPQ), but its has to be especially stinging for Dell (DELL). With the founder back on board, the company says it will take a few quarters to get things on track. A headwind in the PC market does not help that. And, Dell bulls have to be hoping that the company is being conservative about its renaissance. No such luck.
Once again, the PC industry is finding that it is a slave to Microsoft’s products, more perhaps than it is to the chips from Intel (INTC) and AMD (AMD). Microsoft is not offering much in the way of incentives for consumers or businesses to buy Vista. It can afford to wait. Dell cannot.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
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