Delay in Windows Vista launch upsets PortalPlayer plans

The delay in the long-awaited launch of Microsoft Windows Vista seems to have upset the plans of PortalPlayer Inc with regard to the availability of notebooks with Preface secondary displays. PortalPlayer had announced its new technology platform called Preface in January 2006.

The Preface technology platform, which basically enables a second user interface, was expected to appear in notebook computers in the second half of 2006, coinciding with the launch of Windows Vista.

Preface seamlessly integrates with a new feature set in Microsoft Windows Vista called Windows SideShow and gives notebook users instant access to data, music and photos without opening the notebook or even booting the system. However, consumer sales of Vista will not begin before early 2007, thus forcing PortalPlayer to delay the consumer availability of its technology as well.

Scott Tandy, vice-president of marketing, PortalPlayer, Inc told Business Standard, "The announced delay until January 2007 of the consumer availability of some versions of Vista will of course delay the availability of Vista powered notebooks with the Preface secondary displays. Our potential customers are still evaluating the secondary display as a feature which could be available on notebooks prior to the Vista launch, but it's likely that large volume shipments will occur along with the marketing and excitement around the Vista launch."

Analysts have reportedly considered the delay in the launch of Vista as trouble for companies whose sales are closely linked with its launch. This is because, missing the Christmas season (the holiday shopping season) could turn the revenue targets of such companies topsy-turvy.

At an earlier press conference, Gary Johnson, president and chief executive officer of PortalPlayer Inc had stated, "We are optimistic about incorporating Preface in half of the notebooks shipped in 2008. In 2006, we expect around 10 per cent of our revenues to come from the notebooks segment."

Tandy, however, brushed aside the possible financial impact by saying that though the Preface product line offers a great diversification opportunity for the company, it would not have a substantial impact on the company's 2006 financial performance.