Windows XP may breathe new life into tech


The Windows XP desktop

By CNN's Kristie Lu Stout

HONG KONG, China (CNN) - Microsoft on Thursday launched its long-awaited Windows XP operating system, a product analysts say may revitalize the depressed PC sector.

Tech firms struggling through a severe slump are eager for a blockbuster to revive the industry.

PC sales worldwide have tumbled for two consecutive quarters -- the first time in 15 years.

"We hear from various sources that PC vendors are preparing for a spike in PC demand on the back of this launch," said Goldman Sachs regional tech analyst Jonathan Ross.

"Undoubtedly, Microsoft will work hard and cooperatively with its PC vendors to try and push through as much product as possible," said Ross.

Asia PC makers to benefit

As a major PC manufacturing center, Asia stands to benefit from a surge in IT demand as a result of a Windows XP.

Beneficiaries of an XP-related demand spike include computer makers NEC, Fujitsu, Toshiba and Matsushita as well as display makers like Korea's LG Electronics and Samsung Electronics.

Taiwan's PC laptop and component makers like Acer, VIA and TSMC could also indirectly reap rewards.

"If XP can drive additional growth, it would be good for Taiwan components including motherboard makers," said Merrill Lynch Taiwan-based analyst Tony Tseng.

"Taiwan also accounts for more than 50 percent of notebook PCs in the world -- it would be good for notebook PC companies if greater demand is supported by the launch of the new XP."

XP may give the industry the boost it needs, provided that consumers are willing to upgrade their hardware.

Most XP purchasers will have to upgrade to a new PC because the system requires a computer with a 300 MHz or higher processor and 128MB of random access memory.

Windows XP, short for "experience," represents Microsoft's focus to create a total, distributed platform where no single piece of software is at the center.

Internet applications like instant messaging, videoconferencing and voice telephony are hardwired into XP - much to the dismay of software developers who accuse Microsoft of unfair business practice.

South Korea's largest Net portal, Daum, and 17 other software firms said they would take joint action against the planned release of Microsoft's Windows XP.

A localized Korean version of Windows XP is due to launch on November 9, following the upcoming launch of a Chinese version.

A Japanese version will be available on November 16.