Microsoft (MSFT): Can Bill Gates Save The PC Industry? No

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By Douglas A. McIntyre Published

Microsoft (MSFT) introduced its new table-sized touch-screen PC. The new unit will be put into hotels and casinos for the time being. It can be used to buy tickets and play games. It runs the Vista OS, and it is cool. It is called Surface.

According to The Wall Street Journal, the product has been something of a dream for Microsoft founder Bill Gates. The newspaper quotes him as saying: "I’ve been saying the last few years that the thing people are underestimating the most is how ‘natural interface’ will change computing."

His view is probably wrong. While a "natural interface" may have been natural a number of years ago when the PC was still in its early stages, using a PC is now as normal as driving a car or cooking a meal, especially for people under 50.

Apple sold 1.5 million Macs in the last quarter. It has about 4% of the global market. Depending on whether IDC or Gartner is doing the measuring, worldwide PC sales could be well over 150 million units this year. Vista has sold 40 million copies so far since it was introduced. So, looking at the data, it would not be hard to imagine that there are 500 million working PCs around the world.

Intuitive computing for the average PC user is still a long way off. And, most people with a PC don’t need it, and probably don’t want it.

They already know how to us a PC very well, thanks. They don’t need any extra help.

Douglas A. McIntyre can be reached at [email protected] He does not own securities in companies that he writes about.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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