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Windows 8, ultrabook won't revive notebook growth: Citi

TAIPEI -- Microsoft Corp.'s next generation operating system and the lightweight ultrabook laptops favored by chip maker Intel Corp. will not be enough to revive notebook computer growth, U.S. bank Citigroup Inc. said yesterday.

Kevin Chang, a Taipei-based analyst for Citigroup, predicted that the annualized growth of notebooks will fall below 5 percent in the long term because tablet computers have eroded demand for notebooks, especially in the replacement market. “We believe the notebook upgrade cycle is being prolonged due to the rise of tablet PCs,” Chang said at a market trend forum as part of the SEMICON Taiwan global trade show.

“The notebook replacement cycle will get much longer, maybe five years, as hybrid tablets start to replace some consumer notebooks.”

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