Smart Office

Menu

David Richards

Wireless Homes Is The Future Survey

by

A recent consumer survey demonstrates that while respondents with existing home networks are fairly evenly split between Ethernet and Wi-Fi, future home network deployments are largely planned as Wi-Fi networks.

A recent  consumer survey demonstrate that while respondents with existing home networks are fairly evenly split between Ethernet and Wi-Fi, future home network deployments are largely planned as Wi-Fi networks. The 640 tech-savvy consumers who participated in the survey still chose data-networking applications over consumer electronics applications as the applications for which they were most interested in using Wi-Fi connectivity.

“Consumer electronics vendors have a challenge to educate consumers about Wi-Fi and to overcome the perception that Wi-Fi is simply a data networking technology,” says Norm Bogen, In-Stat analyst. “Nevertheless, Wi-Fi silicon vendors have fully committed to this market segment, and In-Stat believes the benefits to consumers of Wi-Fi connectivity in consumer electronics devices are significant enough to build a major market segment over the next five years.”

A recent report by In-Stat found the following:

– The challenges that Wi-Fi faces, in terms of range, bandwidth, security, and Quality-of-Service (QoS), are being addressed by new standards that have either recently been ratified or are set to be ratified over the next several years.

– The prevalence of wireless network availability, especially in home networks, makes it increasingly likely that any consumer electronics device would benefit from Wi-Fi connectivity.

– More PCs in a respondent_s household was positively correlated with a greater likelihood of having heard of Wi-Fi being used in various devices.

The report, “Untethered Fun: WLAN in Consumer Electronics Consumer Survey” covers the results and analysis of a survey conducted in June 2005 of 640  consumers. The survey examined consumers_ knowledge, attitudes and actions regarding Wi-Fi as a home networking technology in general, and as a means for wirelessly connecting consumer electronics devices, in particular. This report is useful for product managers and marketing directors in Wi-Fi and consumer electronics equipment and semiconductor vendor companies, financial analysts covering these markets, and consultants advising clients in these markets.

CISCO Grabs Big Share Of SMB Market

by

Cisco in partnership with distributors like LAN Systems and Express Data have helped CISCO grow their share of the SMB market by 40%.

Sales to small and medium size businesses through its distribution partners have surged almost 40 percent over the past year, Cisco Systems has said.

The taking of more than 1 million orders is a record for the company, a Cisco spoksman said. Key distribution partners for Cisco’s efforts to drive more sales to the small, medium (SMB) business segment  are Lan Systems and Express Data. “Distributors are the backbone of our SMB channel strategy and last year when we announced an increased focus on the SMB market we knew that if we executed properly we would see a spike in annual distribution order volume,” said John DiLullo, vice president, of worldwide distribution at Cisco.

“However, hitting the million order milestone in a single year came much quicker than we anticipated and it’s due in large part to our distribution partners,” he added. “They provide personalized ordering services, competitive pricing, and technical pre- and post-sales telephone support for even the smallest customers. We would need to hire an army of people to provide this level of support.”

Cisco has over the past 18 months introduced more than 30 products focused on the SMB segment as well as signed on several new channel sales partners and offered more support services, financing, applications and training.

EXCLUSIVE: Electrolux Marketing Director Quits After Just Five Months

by

Lambro Skropidis the Director of Product & Brand at Electrolux has quit the European appliance giant five months after taking the top marketing job at the Australian subsidiary.

Skropidis a seasoned consumer electronics and appliance market marketing director, quit as Marketing Director at LG Australia in July 2015 to take on the role at Electrolux.

He quit after returning from a visit to Electrolux head office in Sweden.

Lambro Skropidis


ChannelNews understands that Skropidis who has confirmed his exit from the Swedish Appliance Company is currently being head hunted by several Companies due to his unique understanding of the CE industry.

According to sources the role was not what Skropidis expected the role to be.  

Prior to working at LG he was marketing director at Samsung Australia.

It was expected that Skropidis would spearhead the launch of new GE appliances in Australia in the second half of 2016.

On Friday Electrolux paid GE a US$175 million termination fee yesterday, formally ending its planned acquisition of the conglomerate’s appliance business.

The break-up fee was a right-of-refusal stipulation of the proposed $3.3 billion buyout; which GE withdrew last week amid stiff resistance from the Justice Department.

It is unclear what plans GE has for its white-goods business, which it no longer considers a strategic fit and has repeatedly tried to sell or spin off in recent years.

Elsewhere, Electrolux also announced cost cuts within its small appliances operations in the U.S., Sweden and in some Asia Pacific subsidiaries, including staff reductions and “downsizing of activities.” The effort is expected save the company about $120 million annually.

Woolworths Release Dick Smith From Upside Obligation As Master Costs Blow Out

by

Woolworths who last year sold their Dick Smith operation to concentrate on the roll out of the Master hardware chain has finally admitted that the costs of rolling out the chain has blown out to a pre-tax loss of $157M.

They have also announced that they have released Anchorage Capital Partners from its obligation to deliver Woolworths any upside resulting from the future sale of electronics group Dick Smith.

Woolworths sold Dick Smith to Anchorage last year and had agreed to some upside in the future if the business was later sold.

Woolworths said this morning in return for the new deal it would receive payments of $74 million to be booked as income in 2012-13.

As a result of these additional proceeds the loss to Woolworths from the sale of Dick Smith of $65.7 million shown in its half year 2013 results will become a profit of $7.9 million in financial 2013.

Anchorage Capital Management said t5hat today signifies a new chapter in Dick Smith’s independent success as Anchorage Capital Partners and Mangement, led by Nick Abboud have completed a release from the financial obligations to its former partner; Woolworths. 
The buyout coincides with the Phase 1 completion of Dick Smith’s turnaround initiative which has increased operational efficiency, profit margins and growth, since the initial takeover from Woolworths in 2012. 
Nick Abboud, CEO of Dick Smith Australia and New Zealand says, “This is a very exciting day for Dick Smith – one that we have been working towards since Anchorage first came on board. The Dick Smith business is in a strong financial position with cash in the bank and no net debt. Based on Dick Smith’s performance over the last six months we are confident the business will continue to experience positive growth and performance as a major player in the Australian consumer electronics industry.”
“Dick Smith is committed to helping consumers get the most out of their technology and that starts in store. In the coming months we will be announcing a number of exciting initiatives that will see major changes to customers’ retail experience and an expansion of Dick Smith’s footprint throughout Australia and New Zealand.”


Woolworths are also facing the potential of having to pay out between $700 and $800M to Lowes their US partner in October 2014 due to a “Put Option”.

Master who is selling white goods and small appliances has admitted that they overestimated the costs of launching the chain up against the Wesfarmers owned Bunnings and Mitre 10.

A statement to the Australian Securities Exchange said the higher losses were due to overly optimistic sales budgets, relatively higher wage costs for new store openings and lower margins due to the sales mix.

Insiders are tipping that a new CEO could jettison appliances which are not delivering the returns that were first forecast.

Recently several Analysts questioned the true cost of the Masters roll out and the losses it was accumulating for two-thirds owner Woolworths.

Woolworths has also announced revised earnings guidance, saying it now expected net profit after tax from continuing operations, excluding non-recurring items, to grow in the range of 5 per cent to 6 per cent.

Woolworths is still forecasting that Masters will break even during financial 2016, assuming more moderate growth in sales per store and improvements in gross margins.

Woolworths expected the losses for financial 2014 not to exceed this year’s levels.

In its hardware update this morning, Woolworths said there were currently 120 active sites on its books for Masters and at the end of 2012-13, 31 stores were open. But due to the timing of approvals and construction the number of store openings in the first quarter of 2013-14 would be lower than the recent run rate.

Woolworths also moved this morning to quash any suggestion its one-third partner in Masters, US hardware giant Lowes, was seeking to dump its stake in the Australian business and walk away from the partnership.

Australians Forced To Register 72 Hours Before Entering USA

by

Australian visitors to the United States will have to register their trip with the American government 72 hours before they leave, it will be announced tomorrow by US Homeland Security secretary Michael Chertoff and will take effect from January 2009. The registrations will be able to be made online.

The new regulations will apply to citizens of the 27 visa waiver programme countries which include Australia, Brunei, Japan, New Zealand and Singapore.

The latest in a series of measures designed to strengthen security  the new regulations will see all travellers from countries which do not currently require a visa forced to register online three days before flying.

The Daily Mail in the UK said that It is understood the registration system will require the same information provided on the 1-94 immigration form travellers must fill in before entering the US. But the data will be stored electronically with the new website accepting registrations from August.

A spokesman for Homeland Security told the Daily Mail that  the plan would help prevent terrorists entering the US. He said the government wanted to stop people like ‘shoe bomber’ Richard Reid, who tried to destroy an airliner with explosives hidden in his trainer, and Zacarias Moussaoui, the Frenchman who was convicted of involvement in the 9/11 attacks and entered the US without a visa.

New Microsoft Hand Held PC

by

Microsoft has unveiled its “Origami Project,” a new category of handheld computer that could become the next must-have digital device for the home. It sells for under $1000

Amid the biggest hype since it launched the Xbox 360 in November the device that runs for only for about three hours on a single battery charge and is set to replace many high end control panels. Samsung is set to sell the first models next month in the USA for $599 to $1,000, depending on what features are included. It is expected in Australia by June 2006


Click to enlarge

Origami Project was the code-name for a new category of PC that Microsoft and Intel have been developing for more than a year. They hope the devices will become small and cheap enough that most PC users will buy one to supplement their home and office machines, staying constantly connected via wireless networks. They also see as a product that will communicate with an Xbox or video or storage source.

The product could also result in CEDIA members selling the device as part of an integrated home automation solution due to its low cost. “This is the first generation of a long string of innovations we intend to bring to small form factors that run full Windows,” said Mika Krammer, director of Windows mobility marketing. “We are not trying to position this Ultra Mobile PC at this time to be all things to all people, so every man, woman and child should own one of these in the next three months.”

The Samsung has a 7-inch diameter screen, runs Windows XP Tablet Edition and weighs under 1 kilo. Some models will have global positioning systems and wide-area networking features. Storage capacity will range from 30 to 60 gigabytes. Samsung’s model comes with a program that can display TV broadcasts transmitted wirelessly if users have a Slingbox, or separate device.  Asus Computer is expected to sell a version soon in the Australian market.

Among the device’s software advances are touch-screen capabilities and a digital version of the Sudoku numbers puzzle.Future versions will be based on Windows Vista, the new Microsoft operating system coming later this year, and a new Intel chip set with all-day battery.

Some of the devices with XP will be able to upgrade to Vista. Analysts said the concept is intriguing but still early. If the devices cost $1,000, people may buy a laptop instead, so Microsoft, Intel and PC makers have to keep prices around $500, said Bob O’Donnell, vice president of client research at IDC.

“If in one device I can get the equivalent of a GPS and a Web terminal and e-mail machine and media playback device, it starts to become a little more interesting,” he said. There’s also a risk the first versions will be underwhelming, O’Donnell said. “The reason it’s gotten so much buzz and so much press is the vision is very appealing; there’s no question about that,” he said. “It’s a question of execution and delivering on that promise.”

The PC industry has tried with mixed success to develop handheld computers. It’s also facing new competitors, such as phone company Nokia’s 770 Internet tablet that went on sale in fall for under $400. Because people have different tastes, one device is unlikely to dominate, said Allen Nogee, an In-Stat/MDR analyst who carries a Nokia 770.

“That’s the thing we see with cellphones; people are expecting one model or form factor of cellphone to fit everyone,” he said. “It’s never going to happen.” Microsoft’s Krammer said there’s an opportunity for the PC industry to build different versions of the Ultra Mobile PC for certain types of users, such as travelers wanting a GPS version loaded with hotel, restaurant and mapping information. Installers

To start, the most likely buyer is a technology enthusiast. “Do we expect and hope that everyone’s sister and grandmother will own one?” Krammer said. “Not in the near term, but that is certainly an aspirational goal in the years to come.” Several OEMs are expected to release the first batch of Intel-based Origami devices in mid-2006.
At CeBit, Microsoft demonstrated Touch Pack for Windows XP on Samsung’s Q1 Ultra-Mobile PC to show the ease of navigation for mobile computing.

Microsoft has also developed special software for Windows XP Tablet PC Edition 2005 and several editions of Vista that incorporate the Tablet PC Windows software.

The Microsoft Touch Pack for Windows XP’s customisable Program launcher lets users organize programs into categories, and it provides larger buttons and icons to make it easier to find applications. It also includes a thumb-based, on-screen keyboard that’s enhanced for touch-text input, a “Brilliant Black for Windows Media Player skin” and a new touch- and ink-enabled game.

Sony Samsung Relationship Not Dead

by

The President of Sony has rebuked the head of Sony TV by claiming that Sony is considering an additional investment in its joint LCD TV venture with Samsung.

Only days after Makoto Kogure, head of Sony’s TV group, was quoted  as saying that Sony is considering an investment in Taiwanese LCD TV screen maker M&A as opposed to continuing to invest in S-LCD, its joint venture with Samsung Electronics the President of Sony Ryoji Chubachi has said the opposite claiming that Sony is considering making an additional investment in its liquid crystal display joint venture with South Korea’s Samsung Electronics Co. Ltd.

Sony and Samsung formed a $2.6 billion  joint venture in 2004 to produce liquid crystal display (LCD) panels for flat TVs. Called S-LCD, the venture began shipments of panels in April and is expected to reach full capacity next year.

“We are studying (an additional investment in S-LCD). It would be the most reasonable choice,” Ryoji Chubachi told a roundtable with reporters. He said, however, that nothing concrete had been decided.Chubachi also said Sony planned to write down about 60 billion yen worth of cathode ray tube television assets in the business year to next March as it shifts resources to more promising flat TVs. Sony officials said the impact was already included in the company’s earnings forecast for the business year.

Chubachi’s comments come after Sony last week unveiled a new restructuring plan, vowing to cut 10,000 jobs, or about 7 percent of its work force, sell non-core assets and downsize or withdraw from unprofitable businesses.

During his chat with journalists Chubachi denied reported divisions in the management team  insisting that the Japanese company’s leadership is united and doing all it can to revive its sagging fortunes.

“There are no contradictions or conflict. I can say with confidence we stand together,” Chubachi, who also heads Sony Corp.’s electronics division and is chief operating officer, told reporters at the company’s headquarters here.Chubachi and Chief Executive Howard Stringer — the new international team heading Sony — announced a revival plan Thursday last week centered mainly on boosting profits at its electronics unit, which has lost money for two straight fiscal years because of the plunging prices of electronics products and the onslaught of cheaper Asian rivals.

The latest shake-up calls for slashing 10,000 jobs, or about 6 percent of Sony’s global work force, by the end of March 2008. It will also close 11 of its 65 plants and shrink or eliminate 15 unprofitable electronics operations. Chubachi refused to disclose the 15 areas, saying that merely identifying them will hurt Sony’s business.

The Financial Times reported over the weekend comments from Welsh-born Stringer, the first foreigner to head the electronics and entertainment company, saying the restructuring plan had not gone far enough and conceding that Japan’s “humanitarian” culture in offering stable employment had made dramatic job-slashing difficult.

But a visibly excited Chubachi, who punctuated his comments with fiery declarations and friendly banter, said management remained united.

He appreciated the differences in opinion that officials from Sony’s various sections brought in hammering out the revival plan, he said, although he said he has not confirmed the reported comments with Stringer.

“Of course there is never going to be a day when the CEO, COO and people in the entire company are suddenly all going to come up with the same answer,” Chubachi said.

Sony, which also has a sprawling entertainment empire including music, movies and video games, said last week it would likely report a 10 billion yen (US$89 million; euro74 million) loss for the fiscal year ending March 31, 2006, mostly from restructuring costs. Previously, it had predicted a 10 billion yen net profit.

That would be the company’s first full-fiscal year loss since 1994, when it lost nearly 293 billion yen (US$2.6 billion; euro2.2 billion), largely on a write-off for Columbia Pictures that Sony acquired in 1989 for what some considered a higher price than its market value. But today’s crisis may be more critical because the core electronics business was profitable in fiscal 1994.

On Monday, Moody’s Investors Service put Sony’s ratings on review for a possible downgrade, citing doubts about the new strategy. Other analysts have also criticized it as sounding much like other plans to streamline corporate structure.

But Chubachi said Sony will answer skeptics with gadgets that offer brilliant image quality tailor-made for the digital home, although he refused to give details.

Sony is promising to focus on “champion products” with growth potential, such as the PlayStation 3 next-generation console, Bravia liquid crystal display televisions and Walkman MP3 music players.

Chubachi compared Sony’s plight to the Yomiuri Giants, the Tokyo baseball team that’s doing poorly this season, and said his company is being expected to deliver dazzling products like home runs and shutouts.

“I hate it when the Giants lose,” Chubachi said with defiance. “And I hate it when Sony loses.”

EXCLUSIVE: Former Dick Smith CEO Facing Bullying Claims

by

Desperate to prove himself after being passed over by Myer, the former CEO of Dick Smith Nick Aboud is today facing serious questions, including possible action by former Dick Smith management who have accused him of “bullying” staff as things got desperate at the mass retailer.

Aboud has also been accused of “blatantly lying” to supplier’s days out from the collapse of the mass retailer who now owe suppliers more than $280M for stock they have no chance of getting a return from.
 
ChannelNews has been told that Aboud who quit the retailer earlier this month is set to be retained by Anchorage Capital the Company that pocketed $320M out of the float of Dick Smith. 
 
According to sources several Dick Smith head office staff have move to lodge complaints with Fair Work Australia.

Earlier today Dick Smith management placed full page advertisments in national newspapers advertising that Dick Smith Stores were “Open”. 


Click to enlarge


Last week buyers at Dick Smith were ordered not to talk to the media with all existing buyers forced to sign none disclosure agreements.

Questions have also been raised as to happened to millions of marketing and Co-Op dollars that Aboud and his management team extracted from suppliers running into the end of the 2015 financial year. 
  
According to senior Dick Smith management Aboud ran a blackboard at the Company’s NSW headquarters that listed how much additional money, buyers could extract from vendors for marketing activities, between May and June 2015.

We know that Aboud and former marketing Manager Neil Merola met with senior executives of several consumer electronic suppliers in an effort to shore up cash flow by extracting additional revenues from suppliers.
 
The CEO of one major supplier was asked for an additional $2M in CO-OP dollars. Several suppliers were told that their products could be pulled from shelves if they did contribute additional support.  

Back in June Marketing Director Neil Merola categorically denied that Dick Smith was trying to extract above average Channel dollars from vendors.

Dick Smith’s buyers pushed them to bring forward anything that could support earnings, such as rebates for advertising or discounts on stock, in the past year.

On 16 Jun 2015 I sent the following email to Neil Merola “We have been told by several vendors and we have had it confirmed by one of your buyers that Dick Smith is asking vendors to put up large sums of money to get their products ranged and marketed by Dick Smith, with the money having to be agreed by June 30th.

With one vendor you recently agreed terms and then your buyer came back and asked for an additional 20% margin or a “large payment” that has to be paid to Dick Smith by June 30th.

Several of your suppliers have told me the same story including both big brand and small brand vendors. 

The last time I raised this with you. I was told that my facts were plain “wrong”.

We have now seen an email between Dick Smith and a major vendor. What I am doing is giving you an opportunity to comment.’

Merola came back claiming that our claims were “pure fiction”.  

Within days of the receivers taking control of the Dick Smith electronics chain Aboud was in contact with Anchorage Capital management.

The former Chandlers executive who is known for his questionable management style has not commented despite leaving staff, suppliers and customers out of pocket.

Real Estate agents in Mosman claim that Aboud is looking to place his multimillion dollar beachside property on the market.
  
Abboud, has told Anchorage Capital executives that he was shocked by the appointment of receivers.

The Australian Securities and Investment Commission (ASIC) has received several calls and written correspondence calling on the Federal Government organisation to investigate what went wrong at the mass retailer.
 
Some are calling for the Federal Police to be called in to investigate.

Aboud is believed to be concerned that it is his signature, that is on a lot of the documents relating to the performance of Dick Smith stores prior to the float and not those of Anchorage Capital executives who benefited from the float.
 
There are also claims Abboud relied on provisions in Dick Smith’s accounts to support the underlying operation’s performance in the first few years. 

He was hoping, that he could build momentum in that time to sustain the operation’s performance once these provisions were expended claim s former Dick Smith senior management. 

Anchorage Capital Partners finally broke cover on Friday to defend the performance of the retailer under its stewardship.

A spokesman said Anchorage managing director Phil Cave stayed on as chairman of Dick Smith for 12 months after its public listing in December 2013 to ensure continuity.

He said in December 2014 the company still held more than $95 million in cash and remained debt free.

Dick Smith shares were suspended at 35?.

Unlike Abboud, who held on to his 6.5 per cent stake in Dick Smith, Anchorage sold its remaining 20 per cent interest in September 2014 at $2.22, crystallising a $370 million profit from its two-year investment in the business.

Abboud’s financial interest in the business has plummeted from $34 million to about $5.4 million.
 
When asked about cash flow and Dick Smith ability to pay suppliers Aboud allegedly said “There are no issues, we have everything under control, suppliers will be paid. Money has been tight running into Xmas I can guarantee you will be paid”.

One of the Companies hard hit is Ingram Micro who is exposed for over $14M.

Since acquiring Tech Pacific, Ingram Micro Australia believed to have lost over $200M.

Matt Sanderson the CEO of Ingram Micro Australia has not returned our calls.

Also exposed is Melbourne based distributor Synex who is owed over $18M.

According to the CEO of Synex Kee Ong, the collapse of Dick Smith is set to have a major impact on both the IT and consumer electronics industries, with several industry executives claiming that several small distributors “will go to the wall”.

At the recent creditors meeting not a single question was asked of voluntary administrators McGrath Nicol.

Over 100 interested parties representing over 350 unsecured creditors, owed about $250 million, including trade creditors, landlords and some 330 employees, attended the meeting at the Wesley conference centre.

About 3300 staff are owed $15 million in annual and long service leave ?as well as wage entitlements.

McGrath also warned that more claims could arise as the Dick Smith saga unfolds.
 
Mr Hayes acknowledged the lost deposits and gift cards that are no longer redeemable by customers, noting they were “the legal reality facing creditors”.

There are 200 unsecured trade creditors, 150 landlords and an unknown quantum of customers owed roughly $250 million.

imate Expands In Oz

by

Smart Phone company imate is set to expand there distributionoperations in Australia beyond Telstra.

Smart Phone newcomer i-mate is targeting online retailers, mobile distributors, second-tier and third-tier carriers, and retailers with an expanding selection of Windows Mobile-based cellular phones, said imate Marketing Manager Allison Caruk.

 

“We are the Smart phone of choice for people in the know and we have achieved great results through our Telstra relationship. We are now moving on to new distribution opportunities in line with global expansion plans. As a result of this we are looking at hiring additional people in Australia”.

 

The company, whose Dubai-based parent launched operations in 2001, already offers Windows Mobile-based smart phones and PDA phones via Telstra’s distribution channel.

Caruk said. The parent, Carrier Devices, designs the phones and contracts out their manufacturing. In entering the Australian markets last year, i-mate believes it can succeed because of its focus on Windows Mobile devices. “We are the leading experts” in Windows Mobile-based converged devices, she claimed. The company has no plans to offer smart phones or PDA phones based on the Palm or Symbian operating systems. I-mate will also provide thousands of applications downloadable from its Web site, some for a one-time fee and others, such as security and virus-scanning applications, for a monthly fee.

 

The company differentiates itself by offering free downloads of select games, ring tones and wallpaper to the phones via connected PC from its Club i-mate site, where users can also download ROM-code updates. Users will also get 24/7 support over the phone and via live online chats as well as a free unlimited hosted e-mail account.

 

The company’s first two phones are the SP3i, based on the Windows Mobile Smart phone operating system, and the JAM, based on Windows Mobile PocketPC Phone Edition and said to be the slimmest PocketPC phone in the world at 4.25 inches by 2.28 inches by 0.71 inches. Both are triband 850/1,800/1,900MHz GSM models with GPRS Class 10 wireless data.

 

In coming months, the company plans to expand its selection with three to five devices, including models built on the latest version of Windows Mobile, Caruk said.

 

Both current models offer Bluetooth, voice recorder, integrated antenna and camera, with the SP3i offering VGA resolution, and the JAM offering 1.3-megapixel resolution. The smartphone features a miniSD slot, and the PocketPC model features an SD card slot that accepts memory cards or a Wi-Fi card.

Other SP3i smartphone features include a 2.2-inch color display, joystick-like control, Internet Explorer, Windows Media Player, Pocket Outlook, Pocket Word, Pocket Excel and MMS. The JAM PocketPC phone features 2.8-inch color touch screen, virtual QWERTY keyboard and handwriting recognition.

 

PC Sales: Biggest Quarter Fall Ever Despite Windows 10 Roll Out

by

Microsoft’s move to push over 100 million upgrades of Windows based PC’s to Windows 10 has done nothing for the PC industry other than give the big software Company, access to millions of consumers personal and PC information while delivering the biggest drop in PC sales ever.

New research revealed at the weekend by both Gartner and IDC reveals that computer sales actually dropped and that Windows 10 was not a catalyst to drive PC sales.

Despite spruiking a free upgrade of Windows 10 to existing Windows 8 customers Microsoft was charging PC manufacturers up to $75 for a Windows 10 license on a new PC resulting in price hikes of some PC’s. 

Both Gartner and IDC estimate that computer sales dropped several points year-over-year (between 7.7 and 10.8 percent) in the third quarter, which is when Microsoft was rolling out their new Windows 10.

That’s one of the steeper drops in recent memory, in fact. 

Not that it comes as a complete surprise. As the analyst firms explain, Microsoft’s fast-tracked release left many PC makers shipping existing systems with Windows 10, which weren’t going to drive demand as much as brand new models. 

You’re not going to buy a months-old laptop just because it’s running new software, are you? The big question is whether or not the wave of new Windows 10 PCs launching with new Intel processors will make a difference — if there’s still a sharp decline, the industry is really in trouble.

Big-name brands like Apple, Dell, HP and Lenovo (the market leader) have emerged relatively unscathed — it’s the smaller, more vulnerable companies that are shedding legions of customers. Even Acer and ASUS saw sales plunge by over 10 percent. It’s too soon to say if Windows 10 will stop the bleeding, but the days of booming computer businesses appear to be long gone.