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Microsoft's Windows XP going away after June 30

Brian White — Mon, 23 Jun 2008 10:35:00 EST

Filed under: Products and Services, Microsoft (MSFT)

A week from today, Microsoft Corp. (NASDAQ: MSFT) will no longer allow computer manufacturers to sell Windows XP.

That's right, "Ole Softie" is basically stating that new PCs must come with a flavor of Windows Vista. Although Dell, Inc. (NASDAQ: DELL) will let customers keep a pre-installed version of Windows XP for a fee, the general consensus is that if you want a new PC with Windows XP on it from the factory, you better order it this week.

Windows XP will still be available from those generic "beige box" system builders until January of next year, so all is not lost. But from major computer manufacturers, it's gone next week.

Windows Vista has gotten a ton of bad press in the last year though hundreds of millions of the system have shipped already thanks to it coming pre-loaded on desktop and laptop PCs from all the leading PC makers. Still, there are some "keep it simple stupid" customers that have written off Windows Vista as being a slothy hog of an operating system and only want Windows XP on that daily-driver PC that may be a few years old, but works perfectly and is very stable.

Moral of the story -- if you've been waiting to order that new laptop with pre-installed Windows XP get that order in now or get ready to use Windows Vista.

Microsoft's Windows XP going away after June 30 originally appeared on BloggingStocks on Mon, 23 Jun 2008 10:35:00 EST. Please see our terms for use of feeds.

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Best Buy seeing picked-up sales of Windows Vista

Brian White — Fri, 16 Feb 2007 09:59:00 EST

Filed under: Products and Services, Consumer Experience, Microsoft (MSFT), Best Buy (BBY)

Although Microsoft Corp.'s (NASDAQ:MSFT) Windows Vista product has not been "on shelves" long enough to really get a feel for how the new computer operating system is going to fare over the long term, retail sales at Best Buy Co. Inc. (NYSE:BBY) are doing well, according to Citigroup retail analyst Bill Sims.

Sims said that "Best Buy is likely seeing better than expected sales of Microsoft Windows Vista-based PCs since their introduction on January 31." The key word here is, of course, "likely," which alludes to a probability that makes some accept a certain comfort level. But what about the normal sales cycle of PCs? Now that there are thousands (or millions) of PCs sitting on store shelves with Windows Vista already loaded, the normal seasonality in PC sales will, of course, drive sales of Windows Vista licenses.

There are also quite a few machines on store shelves that have the older Windows XP operating system on them -- so Best Buy is getting some extra cash from the PC makers to help sell through these machines, according to Sims. Once those are sold, then all new PCs (well, generally) will have the Windows Vista operating system pre-loaded -- and then the sales will start marching regardless.

When considering Microsoft CEO Steve Ballmer's comments yesterday on the revenue from Vista sales being initially over-forecast (liveblogged here), 2007 sales of Vista will probably just be a ramp for a sales increase in the future. The thing is -- investors want more immediate sales after five years in development.

[Disclosure: I own MSFT shares as of 2-16-07]

Best Buy seeing picked-up sales of Windows Vista originally appeared on BloggingStocks on Fri, 16 Feb 2007 09:59:00 EST. Please see our terms for use of feeds.

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Microsoft's Windows Vista pricing strategy

Brian White — Mon, 30 Oct 2006 11:43:00 EST

Filed under: Products and Services, Launches, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT)

What's up with the Microsoft Corporation (NASDAQ:MSFT) pricing strategy on the many versions of the soon-to-be-released Windows Vista operating system? Some tend to think that the lower-end version -- Windows Vista Home Basic -- is so low-end and handcuffed that it's not going to sell at all. And that may be fine for Microsoft, as the company may have created that loss-leader specifically for price advertising and nothing more. Companies have done this since the beginning of corporate commerce. Nothing to see here.

But then that begs the question -- what is the "cheapest" version of Microsoft Windows Vista that customers will actually want to buy? If we dispense with the token "Home Basic" edition, we get a starting price point for Windows Vista "Home Premium" of roughly $240. That's almost as much as some lower-end PCs these days. And a lower-end PC these days is actually quite powerful and perfectly suited to most home and business tasks. Note that I didn't say "all," just most. The standard home user and the desktop business user can get by just fine (more than fine) with that $299 HP or Dell system.

Computer company Acer seems to think that Microsoft is plowing the fields of stupidity with its Windows Vista sales strategy. Are customers really going to shell out $240 for Windows Vista Home Premium if the basic version is perceived as not even an upgrade (in many respects) to Windows XP? Not sure about that, but many customers will buy PCs for the fact that Windows Vista comes pre-loaded. Will this cost PC manufacturers more? You bet -- and many are already upset.

Microsoft's Windows Vista pricing strategy originally appeared on BloggingStocks on Mon, 30 Oct 2006 11:43:00 EST. Please see our terms for use of feeds.

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