Some electronics makers may gain from Windows delay

SEATTLE — A delay in Microsoft Corp.’s plans to release the consumer version of its new Windows operating system is a blow to companies that sell computers, but it could be good news for others in the electronics industry.

Analysts say consumers who were considering buying a new PC this holiday season may now opt for a fancy new television, a rival Apple computer or even Microsoft’s own Xbox 360 videogame console, giving an unexpected boost to companies that make those products.

“Every holiday season there are the top five hot items, and one of those items this year would’ve been a Windows Vista PC,” said Samir Bhavnani, a principal analyst with Current Analysis. “Now that’s off the list and it leaves room for, maybe, a widescreen television.”

Redmond-based Microsoft said late Tuesday that it had decided to withhold the release of the consumer version of Windows Vista until January, after computer makers and others complained that Microsoft setbacks were making it tough for them to adequately prepare for a holiday sales push. Microsoft still plans to release Vista in November to large customers who buy Windows licenses in bulk, but the product won’t be on store shelves, and inside consumers’ computers, until the new year.

Vista is the first new version of Microsoft’s flagship operating system since Windows XP was released in 2001, and companies that make computers and their components were counting on it to breathe excitement into PC sales efforts this holiday season. The loss is expected to extend across the supply chain, from the companies that make computer chips to those responsible for shipping the computers.

“The entire stack gets hurt,” said Roger Kay of Endpoint Technologies Associates.

With the delay, Kay said some of those lost holiday computer sales will be pushed out into 2007, while others will disappear completely. That’s because some consumers will choose to spend money they might have used for a PC to instead splurge on some other kind of gadget, such as a fancy cell phone, a music player or a videogame console.

Sony Corp. recently delayed the release of its new PlayStation 3, but that console is still expected to be in stores in time for the holidays and sales could be boosted. Microsoft’s own Xbox 360 also could benefit, as could companies that make other big-ticket items, such as flat-screen televisions or the next generation of DVD players.

Apple Computer Inc., which is expected to offer new computers carrying its updated operating system in time for the holidays, has the potential to be one of the biggest winners if it can use the opportunity to persuade Windows users to switch allegiances, analysts say.