Windows RT – Confusion abound

 

 

 

 

 

  • Windows 8 launches tomorrow, doubtless to much fanfare, but will the users be interested?
  • No one has any confidence in the ability of this new OS to stimulate a pickup in PC sales and share prices are indicating that there will not be one.
  • A lot of this depends on the reception of Windows on ARM (Windows RT) as these will be the cheapest devices but no one (least of all me) seems to be sure what Windows RT is and what it will deliver.
  • I had hoped that Windows RT is simply a full Windows 8 implementation on the ARM processor but unfortunately it is not as good as that.
  • The naming of Windows RT has caused enormous confusion as many have assumed that Windows on ARM is simply a run-time.
  • This would lead to Windows RT only being the metro based UI and nothing more. i.e. basically what iOS is.
  • It is not quite as bad as that but it is not what I had hoped for.
  • The proposition has been sold as a tablet that can turn into a laptop but it looks to me that the laptop function will fall short of what I would want from my device.
  • Windows RT will run in both Metro and Desktop (Laptop) mode but in desktop mode it will only run preinstalled Microsoft applications and nothing more.
  • Microsoft has re-written Office to run on ARM but whether these will be fully functioning applications in desktop mode or mini-versions is unclear.
  • The device will only install third party applications written to the Metro UI and that execute in the runtime (confusingly called WinRT) written for it.
  • All applications written for Intel’s x86 processor will not run in Windows RT nor will anything written exclusively for a 64bit system.
  • Microsoft has also limited access to some browser APIs which are fully available in Windows 8. This has raised fears among developers that the Windows RT will end up as locked down as iOS.
  • This explains a couple of things. This is why there has been some manufacturer reluctance to support Windows RT because its appeal is not clear at all.
  • It also explains why Microsoft is bundling Office into every copy of Windows RT.
  • Windows RT is not the dream that I had hoped for.
  • Consequently its appeal to the user base is very uncertain.
  • It is cheaper than the equivalent product from Apple, which is good, but if consumers who unknowingly buy RT expecting Windows 8, are going to get very annoyed in short order.
  • I can see a number of devices coming back to the store for failing to be able to install the applications users have on their other Windows devices.
  • In the non-touch world, Windows 8 has little appeal as it offers little that’s incremental to the superb Windows 7.
  • In the touch world one needs to something that’s more special than, incremental to and different from. Apple in order to see traction.
  • Windows RT is not as special or as incremental as I had hoped but it is very different.
  • The net result is great uncertainty but the one thing that looks certain is that the ARM powered devices are not going to get that much traction in their current iteration.
  • Everyone I know is waiting for the Intel versions before buying.
  • When Windows RT is the same as Windows 8, then there is a strong case for ARM powered devices but I think it is going to be a while before this arrives.
  • Hence, when the PC market swings up, as I am sure it will, it will be Intel that really benefits.
  • There are two stories in PCs that I like for the upswing.
  • First, the rising tide floats all boats story and here I think that both Intel and Microsoft look very attractive and very cheap.
  • Second, the market share shift story where Asustek, Samsung and Lenovo continue to take share from Dell, HPQ and Acer due to their superior form-factor development ability.
  • I am itching to buy MSFT but haven’t been brave enough to pull the trigger yet.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

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