The upgrade of the operating system to Vista not only excites Microsoft but also presents a rare money-making opportunity for Samsung.
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Source: CNET |
Samsung Electronics is eyeing a burgeoning market worth up to $370 million this year, as many users wish to upgrade to the Vista operating system without the desire to purchase new computers.
According to Don Barnetson, Vice President of Samsung Semiconductor, approximately 37 million personal computers have been sold in the U.S. alone over the past three years, all equipped with processors strong enough to run the Windows Vista operating system.
“About 10% of these are potential candidates for an upgrade. On average, each person would spend around $100 on hardware, which gives us a chance to capture a market worth up to $370 million for upgrade hardware, just in the U.S.“, Barnetson stated.
To upgrade, typically, computers only need to replace certain hardware components like video cards or dynamic memory. These are the two products that Samsung hopes to dominate. “For just $250 (to purchase Samsung’s video and memory package), you can take your computer home and upgrade to Vista. If you don’t like it, you can spend $1,000 to buy a new machine instead“.
This cost-effective option not only benefits Samsung but also allows the Vista operating system to expand its reach globally. The majority of personal computers worldwide run on the Windows operating system, and previously, each operating system upgrade triggered a massive wave of PC upgrades, as older machines could not meet the demands and power required by the new software.
However, compared to the release of Windows XP, it’s evident that hardware upgrades have been quite sluggish.
While Microsoft has nothing to lose, and Samsung is pleased, a gradual upgrade could leave computer manufacturers like Dell and HP feeling the heat.
To reassure competitors, Samsung insists that they are not advising users against purchasing new machines. “The PC upgrade cycle continues. However, don’t delay upgrading your operating system until you buy a new machine“, Barnetson remarked.
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