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Windows 7 is Selling Well, But Microsoft Could Still be in Trouble

Justin Kerr — Sun, 08 Nov 2009 13:46:10 -0600

Windows 7’s launch may have turned in an impressive 234% growth in sales over Vista, but at least one industry analyst report is suggesting it may not be enough to bring Microsoft out of the red. Boxed copies of the software enjoyed strong pre-orders, but as many of you know, the vast majority of these were sold at a significant discount with an average selling price of only $76 in the week ending October 24th. Sales of PCs through the OEM sales channel also grew by 95% during the launch week, but it has since settled down considerably.

According to the report, Microsoft’s fortunes in 2010 will largely depend on whether the global economic conditions improve, and if IT budgets increase along with it. Strong sales to consumers is one thing, but getting businesses to embrace a tech refresh is the real trick to Microsoft’s recovery. Microsoft Chief Financial Officer Chris Liddell suggested that his company is planning for the worst, and is being “reasonably cautious” about the prospect of enterprises adopting Windows 7.

"It looks like the Win7 inspired upgrade cycle can start in late 2010 and run through early 2013," Katherine Egbert, an analyst with Jefferies & Co., wrote in an Oct. 12 report. "We expect new hardware purchases to precede the software upgrades by about 6 months." Either way, business will need to replace aging hardware and software eventually, but the big question for Microsoft is “when”.

Windows 7 Launch Did Not Grow PC Sales as Hoped

Ryan Whitwam — Fri, 06 Nov 2009 18:46:00 -0600

PC vendors were hoping that the launch of the much anticipated Windows 7 would result in a sales boost. The first reports from those vendors, however, are not painting a very rosy picture. Most vendors report only modest increases in sales.

We know that sales of standalone upgrade licenses for Windows 7 were very good at launch, but it seems not many people went out to get a new PC. Vendors are not expecting sales to pick up in 2009. This may be due, in part, to the fact that Vista users can easily upgrade their existing hardware to the lighter weight Windows 7.

Some notebook manufacturers produced extra units running Windows 7 in anticipation of high demand. With demand ending up weaker than expected, these PCs end up discounted. Expect PC prices to continue to slide. Good for us, not so much for the manufacturers and vendors.

Windows 7 Sales Surpass Vista's by 234%

Pulkit Chandna — Fri, 06 Nov 2009 08:51:27 -0600

Microsoft is wallowing in the success of Windows 7. It is difficult to ignore the itch to compare Windows 7 with its predecessor. The Redmond-based software behemoth seems to be relieved that Windows 7 has managed to dodge the fate of Windows Vista. Windows Team Blog blogger Brandon Le Blanc could barely hide his excitement when reporting NPD group's assessment of the initial response to Windows 7.

"It has been quite amazing to watch the global excitement build around Windows 7, especially during a tough economic climate. It was just a few short weeks ago that we learned about Windows 7 outselling the UK's "own" Harry Potter. In Japan, anxious PC users waited in line to be one of the first to get their hands on Windows 7," a clearly ecstatic Le Blanc wrote on the official Windows Team Blog.

According to NPD's weekly tracking service, Windows 7 software unit sales in the US surpassed VIstas by 234 percent during the first few days. However, revenue generated by Windows 7 sales was only 82 percent higher than Vista's during the tracking period. NPD imputed the rather lackluster revenue growth to the discounts offered on pre-sales and Microsoft's failure to plug the Ultimate version in a manner its due. Windows 7 Home Premium Upgrade with an average selling price of $76 was the top-selling Windows 7 SKU during the week ending October 24, 2009.

How the Default Windows 7 Wallpaper and Login Screen Design Became So Iconic

Ryan Whitwam — Thu, 05 Nov 2009 18:47:25 -0600

Artist Chuck Anderson has found immense success at the ripe old age of 24. If you’ve installed the Windows 7 RC or final version, you’ve seen his artwork. Chuck designed the login screen and default wallpaper for Redmond’s new OS.

Microsoft contacted him in December 2008. They started off showing him the crazy background themes they were bundling with Windows 7. This may have put the young independent artist at ease knowing he had a lot of leeway in his designs.

The designs were done with pencil and paper first, and then transferred to Photoshop for refining. The entire process took about four months. In the process of designing the login screen, Chuck and Microsoft noticed an early version had a series of seven lines at the bottom. They started repeating that in the final design. If you look at his work, you’ll see there are seven branches, seven leaves, and seven flower petals in a few places.

Microsoft managed to collaborate well with a talented young artist, and our new Windows is much more attractive for it. Hit the story link for some work in progress images of the background and login screen.

SophosLabs Sets Out to Prove Windows 7 Has Some Vulnerabilities

Ryan Whitwam — Thu, 05 Nov 2009 18:19:45 -0600

Security firm Sophos recently took it upon itself to run some tests on Windows 7 sans anti-virus software. Sophos used ten unique viruses found in circulation and attempted to infect Windows 7. While many may have thought this would be a foregone conclusion, they wanted to make a point. Microsoft claims that User Account Control (UAC) is more secure in Windows 7. Does it actually make a difference?

Sure enough, eight out of ten viruses ran without problem on a stock install of Windows 7 without User Account Control. With UAC active, an additional threat was actually blocked, and the other two still failed to run. Overall, UAC didn’t make much difference in virus protection. So yes, you still need to run an anti-virus on Windows 7. There’s been a lot of positive buzz around Redmond’s new release, just don’t let that stuff go to your head.

Do Your Part to Save the Economy - Buy Windows 7

Paul Lilly — Tue, 03 Nov 2009 11:15:54 -0600

We can think of several reasons to invest in Windows 7. It's faster than Vista and more secure than XP. The new taskbar rocks. UAC is much less intrusive than it was in Vista. And did we mention it's fast? But if you're still not convinced Windows 7 should be your next OS, consider that you could be helping the economy rebound, according to research firm IDC.

Take this however you will, but according to a report in the Boston Globe, Microsoft hired the research firm to conduct a study of the ripple effect of the Windows 7 launch. During the course of its research, IDC found that U.S.-based companies could hire some 25,000 extra works to cope with the Windows 7 launch.

"There is a bounce effect based on the introduction of Windows 7," Said Amie White, vice president for global research at IDC.

In addition to creating jobs, IDC also estimates that technology companies across the nation stand to sell an extra $110 billion in Windows 7-related products and services through the end of 2010. This will have a trickle down effect as these same companies pump $41 billion to develop, sell, and support new products for Win 7 users, the Boston Globe reports.

Sounds Utopian.

Image Credit: Microsoft

Microsoft and Samsung Toot Each Other's Green Horns

Paul Lilly — Tue, 03 Nov 2009 09:00:54 -0600

Want to get in Mother Nature's good graces and maybe save a buck or two while doing so? Combine Samsung's memory chips with Microsoft's operating system. That's the message in a nutshell the two companies will work together to promote.

"There is not doubt that the combination of Windows 7 and 40nm DDR3 in new PCs will make users very happy," said Dong-Soo Jun, executive senior vice president of memory marketing at Samsung Electronics. "If you opt for 4GB of memory in a Windows 7-based system, over typical 2GB-based systems used today, you'll see an increase in performance, while using less power thanks to the efficiency of Samsung's 40nm DDR3 DRAM."

If this all sounds a little bit hokey, you may just have to get used to it. Depending on how this marketing campaign plays out, Samsung suggested it might further collaborate with Microsoft on more green IT efforts on a global scale.

Image Credit: Samsung via koreahereald.co.kr

MSI Preparing to Launch AMD Neo CPU-fueled 12-inch MSI Wind U230 with Windows 7

Ryan Whitwam — Mon, 02 Nov 2009 20:11:00 -0600

MSI is preparing to launch a 12-inch Windows 7 netbook that will sit atop its U200 series. The U230 will be very much like the previously released U210, which ran Vista. The only notable differences are the new operating system, and slightly faster AMD Radeon GPU.

The netbook will come with the AMD Neo X2 MV40 CPU at 1.6GHz, up to 4 GB of RAM, an AMD Radeon HD3200, and VGA/HDMI out. There’s none of that Windows 7 Starter here - the PC will come with Windows 7 Home Premium. Pricing is still a mystery, though. The old U210 is going for $429.99, so one would hope that MSI can get the price in under $500.