Microsoft Corp. (NASDAQ: MSFT) CEO Steve Ballmer has indicated that the October 22 release of the Windows 7 operating system won't increase PC sales significantly. That's quite a statement from the CEO of the world's most influential software company on a new flagship piece of software that is said to be a truly shining product.Why would the release of Windows 7 and its inclusion on millions of new PCs not increase sales? Ballmer's stated that "There will be a surge of PCs but it will probably not be huge," but it isn't really telling. Microsoft's bottom line will rely heavily on sales of its upcoming Windows 7 software -- and if PC sales don't pick up, how will Windows 7 sales fare? Microsoft licenses its software to PC makers, so it's not directly tied to retail and wholesale PC sales. Still, indirectly they're joined at the hip.
Even though a global economic recession is still running around the playground we all live on, PC prices have dropped dramatically, and that combined with a much-needed operating system release from Microsoft may still prove fruitful this quarter.
Businesses may choose to wait for a while, but it's almost guaranteed that most retail PCs will ship with only Windows 7 in a few weeks from now. That's built-in sales for Microsoft -- the same way it has been for nearly two decades now. If Windows 7 started shipping on the red-hot netbook PC segment (a secret wish of millions, probably), Windows 7 could initially be a huge success in terms of actual shipments.
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Reader Comments (Page 1 of 1)
10-09-2009 @ 4:18PM
e.krabs said...
Yeah, I was a little surprised as well when I heard him make that comment. I think Windows 7 may be the biggest deal since Window 95, and I don't say that lightly.
However, I do think that Vista's much-ballyhooed hype followed by a searing let down may have tempered Mr. Ballmer to approach this launch with caution. "Under-promise and Over-deliver" may be the tone here.
However, I am going to go out on a limb and say that there is indeed quite a market potential this OS. The current space is being shared by the much-maligned Vista, the aging XP, and the sleek but not quite mainstream OS X. There is indeed quite the market potential waiting for Windows 7, and guess what, even at beta, Windows 7 was looking quite muscular and poised to fill that void.
All the tech-heads that I know have ran the beta have walked away with a positive impression. Even Walt Mossberg, a Mac fan, has proclaimed, "I believe it is the best version of Windows Microsoft has produced."
The downside, though, is indeed the economy. Ballmer expects only 6 out of 10 corporate clients agreeing to pony up for the Windows 7 upgrade. So, Windows 7's ascension may be slow at first, but I think it is inevitable. No other operating system will compete, and please remember that I too was a Mac fan, and have much affection for Snow Leopard.
Finally, no, I don't own MSFT.
10-10-2009 @ 2:27PM
ken said...
Windows 7 will increase Apple's sales.... LOL...