LAS VEGAS--Investment bank Piper Jaffray says Windows 8 running on ARM chips won't be anything to write home about. And neither will Intel's latest chip for smartphones.
Windows 8 is a milestone for Microsoft and the PC industry because it's the first mainstream Microsoft operating system to run on both ARM chips--typically found in smartphones and tablets--and Intel's X86 chip design.
"It is time once again for CES...we expect another dollop of hype and hyperbole coming out of CES this year," wrote analyst Gus Richard in a research note Monday morning.
Windows 8--not pretty on ARM, initially: Richard continued. "Windows 8...is due out in 2H:12," he said. "We believe this is a major re-write of the Windows operating system and, as such, we would expect it to be late and buggy...we would not expect Windows 8 to run well on an ARM-based PC."
And he believes Qualcomm (QCOM) will benefit more than Intel from the tablets. "We expect tablets to remain primarily ARM-based and [take market share from] PCs. We think QCOM benefits more from convergence than INTC (Intel), but the real battle likely doesn't start until CY13," he said.
Intel's Medfield chip lackluster: And he had tough words for Intel's Medfield chip--due to debut at CES on smartphones. "Intel will claim Medfield is a significant product introduction for mobile and QCOM will expect Windows 8 to drive ARM processors into PCs. We predict neither will happen in CY12."