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Microsoft reveals strong pre-sales of Windows 8 in quarterly earnings

post #1 of 40
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Sales of Windows PCs plunged ahead of the forthcoming release of Windows 8, but Microsoft saw strong pre-sales for its next-generation operating system ahead of its Oct. 26 launch.

Though sales through Microsoft's Windows division were down by a third in the most recent quarter, the Redmond, Wash., software giant saw $783 million in pre-sales for Windows 8. That's a number 40 percent higher than comparable pre-sales for its predecessor, Windows 7, InformationWeek noted on Friday.

The 33 percent decline in revenue in Microsoft's Windows division did not include pre-sales of Windows 8, as that revenue was deferred to the launch quarter. It also did not include sales of Windows 7 PCs that are eligible for a $15 upgrade to Windows 8, which amounted to another $384 million in deferred revenue.

However, Microsoft did note that "competitive pressures" in the market also contributed to a decline in the previous quarter. Sales of traditional PCs have been greatly affected by the popularity of Apple's iPad.

"The launch of Windows 8 is the beginning of a new era at Microsoft," said Microsoft CEO Steve Ballmer. "Investments we?ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners."

Windows 8


With Windows 8 pre-sales reaching nearly $800 million, the new operating system has seen pre-sales 40 percent higher than Windows 7, which launched in late 2009. The company plans to spend $1 billion to advertise its fall product lineup including Windows 8 and the new Surface tablet running Windows RT, a version of Windows 8 compatible with low-power ARM processors.

"We?re incredibly excited to be approaching general availability of Windows 8 and Windows RT," said Kevin Turner, Microsoft chief operating officer. "We?ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers."

Earlier this year, Apple launched its own Mac operating system upgrade in the form of Mountain Lion. OS X 10.8 comes preinstalled on all new Macs, while existing Mac users can upgrade via the Mac App Store.

Apple sold 3 million upgrades to Mountain Lion in its first four days of availability in July. In September, the company revealed that total upgrades had reached 7 million in less than two months.
post #2 of 40
Probably includes the copies Microsoft 'purchased' for all of their staff.
post #3 of 40
yeah the sales are up because they are requiring it to be loaded on new systems. Unlike in the past when people could refuse the window 7. Just recently new computer at my work was coming with window 7 since the PC guys will no longer load XP. If we could still get XP we would not have moved to 7 that is for sure.
post #4 of 40
GUI looks interesting and has lots of potential - Microsofts default icons and colors are dreadful thou.
Imagine it black glass and translucent. Would look way sleeker.

Thats just appearance thou - will have to actually play with it to see how intuitive it is.

People dont like change, so i imagine there will be complaints. However, with the emerging tablet market - they did pick a good time for a paradigm shift with their OS design.
post #5 of 40
So MSFT wants mindshare credit for presales this quarter, while booking revenues next quarter. What a brilliant way to double-count sales for maximum traction.

Apple should similarly estimate all the iPhones it will sell in the winter quarter and chat about them in the fall quarter where it isn't selling any many, so we can perpetually talk about what Apple is and will be selling, rather than talking about how it isn't selling the new phone before it's available in the market, and how the old phone isn't selling as well at the end of its life span.
post #6 of 40
I read Apple are buying $100K worth just to give financial and moral support to Microsoft. 1wink.gif
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post #7 of 40

They are running a promotion until January where you can buy Win8 pro for $70. After that, it'll be $200. At this price, I'm thinking about trying it out for my old WinXP machine that I haven't touched in a year after getting an mac mini. Of course sales are going to be heavy at this price.
 

post #8 of 40
These numbers are very unlikely. Enterprises are always cautious to moving to new OSes, so there is no chance that Windows 8 will be getting into the hands of any enterprise users quickly.

These numbers can only be sales into the pipeline, and as one person suggested, to PC vendors gathering licenses for preloading on new PCs.

I certainly won't be installing Windows 8 in my VM without knowing more about it, and how it will run the few Windows apps I, infrequently, use.
post #9 of 40
I hate to say this but I'll be buying a copy of Windows 8 to run on my Linux computer in a virtual machine. I hate Microsoft. I'll be using it for work purposes AND for Netflix. I won't keep anything not related to work on it. Those photos, movies, personal files, and everything not related to work will stay away from Windows. I just don't trust their software.

My Apple computer is getting old but I'm keeping it because it works with very few problems. I might even upgrade the RAM and hard drive to give it a boost and extend its lifetime.

If the new Windows 8 cost the same as 7 I wouldn't be making that purchase. I would just stick with my older version. It is my hope that this is the last Microsoft product I will buy.
post #10 of 40

"competitive pressures"

 

Why use so many letters to spell Apple?

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post #11 of 40

I absolutely hate Metro, and considering all the chatter about how Microsoft's partners think Windows 8 is aweful, makes you wonder who's cooking the books at Microsoft to get those numbers.  Only IT sheep would bother buying Windows 8, and only to know the headaches they'll have to deal with in the future.

post #12 of 40
Quote:
Originally Posted by waldobushman View Post

These numbers are very unlikely. 

 

I am with you on this.  Why, because this is the same corp that post numbers of Shipped XBOXes instead of Sold.  So, I take those numbers as shipped... sold on the other hand... not so much.

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post #13 of 40
Windows 7 isnt half bad but after playing wth the beta version of 8 I wont be in any hurry to upgrade. Its the most bizzare unintuitive interface ever.
post #14 of 40

Look, can we use custom icons for Metro yet? It's one thing to completely change how the computer is used, alienating a huge portion of your existing market, it's another to not let us at least change it so that it's not torture just to look at.

post #15 of 40
Quote:
Originally Posted by waldobushman View Post

These numbers are very unlikely. Enterprises are always cautious to moving to new OSes, so there is no chance that Windows 8 will be getting into the hands of any enterprise users quickly.
These numbers can only be sales into the pipeline, and as one person suggested, to PC vendors gathering licenses for preloading on new PCs.
I certainly won't be installing Windows 8 in my VM without knowing more about it, and how it will run the few Windows apps I, infrequently, use.

Unlikely?  The numbers are the numbers... Microsoft has cash in hand for sales not yet recorded.

 

whether or not Win8 will 'deploy' will be one thing, but Microsoft is 'selling' these licenses now.  If you're a corporation, you're buying a Win8 License Day 1 post-release.  You may overwrite it with your enterprise image, but you own the license.

 

I want to have a Win8 VM in parallel with my Win7 and XPsp2, as part of my infosec analysis work, but 'use' it? dunno.

post #16 of 40

I really hate the "puzzle-like" (for the lack of a better description) layout. It's cluttered, unorganized, and, even though some have different colored backgrounds, all the icons are the same color. They did something like this with Xbox a few years back and it was horrible.

 

When I was younger, I took a bunch of "cool" differently-sized pictures and pieced them together in my room to make an "awesome" wall o' pictures. It was a horrendous, ugly mess. The only difference here is that I figured out that that look was horrible a decade ago...

post #17 of 40
This windows 8 interface seems useless for getting work done. It is designed for touch screens and is going to be a complete cluster to use with a mouse from what I can tell. What work computer users are going to give a damn about having social media, photos, music, etc on the start page. At least I don't have to upgrade.
post #18 of 40

It's a collage. Besides, having a screenful of smiling models at the beach and monochrome icons is such an improvement over the old Start menu.

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post #19 of 40

My macbook pro runs windows 7, and i have to say microsoft did a nice job with windows 7. I wouldn't call it prefect but its nice. I use both OSX and windows 7 and have only minor problems with both.

 

But I hate the idea of windows 8, I haven't used it any, but from all the PC loving people I know, they don't even like it.

 

I will stick with OSX and windows 7.

post #20 of 40
post #21 of 40
The devil's in the details. Who did they make those pre-sales to? My guess is manufacturers such as Dell, HP, Asus, Lenovo, and all of the others who are desperately hoping that Win8 will make their boring, cheap boxes desirable by actual consumers.

Just because Ford sends cars to dealers doesn't mean anyone is going to buy them.
post #22 of 40

Guys, just wait until you see the hardware requirements to use it.  It will probably not work on the same hardware that XP did.

post #23 of 40
Quote:
Originally Posted by digitalclips View Post

I read Apple are buying $100K worth just to give financial and moral support to Microsoft. 1wink.gif

actually, i demand apple to do it.

 

with their awesome trackpads, the windows 8 experience on a mac will beat pretty much any current non-mac computer. i got win8 for free.

i want decent bootcamp drivers (mac like) for it :)

 

i paied 1699 for this amazing macbook air, so i'm being reasonable.

post #24 of 40
Quote:
Originally Posted by bluedalmatian View Post

Windows 7 isnt half bad but after playing wth the beta version of 8 I wont be in any hurry to upgrade. Its the most bizzare unintuitive interface ever.

I have a feeling that Windows 7 is going to remain available for a very, very long time.

 

Window 7 = the new XP

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post #25 of 40
Quote:
Originally Posted by mstone View Post

I have a feeling that Windows 7 is going to remain available for a very, very long time.

Window 7 = the new XP

Have you moved to Win8 at your work? We are still mostly WinXP. Less than a dozen people have Win7 right now and we only moved from WinS2k3 to WinS2k8 last month.

Ive been playing around with WinS12. There are lots of aspects I like about it but like Win8 there are more that seem like a huge step backwards. I don't see any part of MS's vision being overall better except for WinPh8 over WinPh7 and those sales are stagnant.
Edited by SolipsismX - 10/19/12 at 2:53pm

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post #26 of 40
Quote:
Originally Posted by SolipsismX View Post

Have you moved to Win7 at your work? We are still mostly WinXP. 

I have one XP in my office and accounting is still on XP but not sure about IT dept. probably some of each.

 

Oh yeah we have Win Server 2003 on two boxes in my office.

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post #27 of 40
Quote:
Originally Posted by Quadra 610 View Post

Give it 6-8 months. 

 

http://seattletimes.com/html/businesstechnology/2003636731_webvista26.html

 

 

Yup.

 

LMAO

 

Why does MS report sales in dollars in stead of units, as they did with prior versions of Windows?

 

Is this an attempt to obfuscate... if so, what?

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post #28 of 40
Quote:
Originally Posted by Dick Applebaum View Post

 

Why does MS report sales in dollars in stead of units, as they did with prior versions of Windows?

 

Is this an attempt to obfuscate... if so, what?

 

 

MS is desperate to overcome Apple mindshare on one end, and the Rise of Google on the other. They've been squeezed out of mobile utterly. They have no confidence in what they're doing. They'll try to report on anything that *might* make them look dynamic to the unsuspecting. 

post #29 of 40

I've been running 8 in VB for a while now, and it sucks. Metro is useless. It took me days to figure out how to just get back to the Metro 'page'. I had to restart the machine (virtually) and reopen whatever. IE10 in Metro is pretty good (lookswise) but isn't that functional. The new desktop in 8 is pretty much the same. But it takes some getting used to switching from metro to the desktop every time. Here is my breakdown on Windows starting with XP (keep in mind that I actually like XP)

 XP: Completely functional and aesthetically adequate - not fancy, but does what you want

Vista: Do I even need to say this? Buggy, not functional and a complete mess in looks

7: Less functional than anything previously, but almost aesthetically adequate

8: Completely non functional, a mess in aesthetics

 

 

 

PS:

DOS: Completely functional in every way + more, but lacking in looks at all

 

 


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post #30 of 40

Tallest, it's no longer an "icon"- that was so yesterday..., remember-. It's live tiles now. If you don't like the most revolutionary change made to the iconic 30-year-old-GUI, you can always stay with the older Windows, "the WOlds", or perhaps you can install a software which will bypass the live tiles and straight to desktop plus a Start menu makeover on Windows 8. It would be clunky, but that'll work if you prefer to get stuck in the past. I am sure with the potential of many who would "migrate" to Windows 8, there would be plenty of 3rd party solutions to what you are asking. 

 

Quote:
Originally Posted by Tallest Skil View Post

Look, can we use custom icons for Metro yet? It's one thing to completely change how the computer is used, alienating a huge portion of your existing market, it's another to not let us at least change it so that it's not torture just to look at.

post #31 of 40
Quote:
Originally Posted by TheOtherGeoff View Post

Unlikely?  The numbers are the numbers... Microsoft has cash in hand for sales not yet recorded.

 

whether or not Win8 will 'deploy' will be one thing, but Microsoft is 'selling' these licenses now.  If you're a corporation, you're buying a Win8 License Day 1 post-release.  You may overwrite it with your enterprise image, but you own the license.

 

I want to have a Win8 VM in parallel with my Win7 and XPsp2, as part of my infosec analysis work, but 'use' it? dunno.

Sorry, though numbers are numbers, we're past the first grade, and it's not numbers but the numbers' meanings that are important. Financial accounting is a funny animal, and its pretty easy to create transactions as Sales Revenue to give the impression that a product is doing well when that is not the case.

 

You only have to go back 10 years to listen the SJ discuss how Apple Music store got started and how Apple put the music/cd brick and mortar stores out of business. The record companies defined their customers as the brick and mortar stores. SJ realized the stores were NOT the real customers and completely changed the relationship between the record companies and the ultimate customer by putting iTunes in the middle and forcing the companies to account for sales to their real customers. These record companies didn't like it and I presume that the movie and tv companies are fighting Apple's push into that business for the same reason; they want to charge and account for sales to middlemen, and not per movie or tv show to the ultimate customer. 

 

People are fond of saying you can lie with statistics, but that is untrue. One can be ignorant of what the numbers are saying, or make incorrect inferences about what the numbers are saying, but the numbers and statistics don't lie.

post #32 of 40
Yes, these figures wouldn't be actual 'sales', rather they are forced purchases to vendors who will have to sell new machines with Windows 8 - or else.
post #33 of 40
Quote:
Originally Posted by mstone View Post

I have a feeling that Windows 7 is going to remain available for a very, very long time.

Window 7 = the new XP

Yep, into the MS sunset.
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post #34 of 40
The numbers sound "impressive", $780 million in pre-sales...

But something is afoot. Given the price points for Windows, even if it's all at the "discounted" $70, that's just over 10 million copies sold? Apple sold 3 million copies of OS X Mountain Lion in its first 3 days. Compare those, as they seem to me to be the closest comparison of sales strength.

Last time I heard Ballmer comparing M$ and Apple, he was touting their total >90% dominance of the OS market. This doesn't strike me as all THAT dominant. Especially when compared to say, 2002.

Here it implies more like a 70/30 split of desktop OS share, and that doesn't count the near-ubiquitous iOS base. If we're counting iPads in the PC totals (as some analysts do), then it's OSX + iOS vs Windows. By that measure I imagine they're easily neck and neck, or Apple is actually a good margin ahead.

In any case, wow... What a difference a decade makes.
post #35 of 40
Quote:
Originally Posted by tribalogical View Post

The numbers sound "impressive", $780 million in pre-sales...
But something is afoot. Given the price points for Windows, even if it's all at the "discounted" $70, that's just over 10 million copies sold? Apple sold 3 million copies of OS X Mountain Lion in its first 3 days. Compare those, as they seem to me to be the closest comparison of sales strength.
Last time I heard Ballmer comparing M$ and Apple, he was touting their total >90% dominance of the OS market. This doesn't strike me as all THAT dominant. Especially when compared to say, 2002.
Here it implies more like a 70/30 split of desktop OS share, and that doesn't count the near-ubiquitous iOS base. If we're counting iPads in the PC totals (as some analysts do), then it's OSX + iOS vs Windows. By that measure I imagine they're easily neck and neck, or Apple is actually a good margin ahead.
In any case, wow... What a difference a decade makes.

I'd guess that it's more copes than that because it's lomg term OEM deals that are much cheaper per unit. One could then say it's more impressive if it's more units but i say it isn't which is why they only posted a revenue figure.

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post #36 of 40
Quote:
Originally Posted by tribalogical View Post

The numbers sound "impressive", $780 million in pre-sales...
But something is afoot. Given the price points for Windows, even if it's all at the "discounted" $70, that's just over 10 million copies sold? Apple sold 3 million copies of OS X Mountain Lion in its first 3 days. Compare those, as they seem to me to be the closest comparison of sales strength.
Last time I heard Ballmer comparing M$ and Apple, he was touting their total >90% dominance of the OS market. This doesn't strike me as all THAT dominant. Especially when compared to say, 2002.
Here it implies more like a 70/30 split of desktop OS share, and that doesn't count the near-ubiquitous iOS base. If we're counting iPads in the PC totals (as some analysts do), then it's OSX + iOS vs Windows. By that measure I imagine they're easily neck and neck, or Apple is actually a good margin ahead.
In any case, wow... What a difference a decade makes.

 

Psst..., You forgot to add another 25,600,000 Windows 7 PC's eligible for the USD 15 upgrade to W8. 

 

so, the 90/10 split is still intact, i.e. W8's (25,600,000+ 10,000,000)  against   OSX's 3,000,000

 

If you add iOS that will change the ratio quite a bit, but not as much as you'd estimated. It will probably up the numbers to Apple's favor at most to the high teens. Furthermore, this past one decade is not enough to change Apple's fortune in OS category, but another additional decade could make an impact should M$ just stand there and do nothing, a very highly unlikely proposition.

 

Quote:
Originally Posted by AppleInsider View Post

It also did not include sales of Windows 7 PCs that are eligible for a $15 upgrade to Windows 8, which amounted to another $384 million in deferred revenue.
post #37 of 40
Every sale now counts as a Windows 8 sale for Microsoft. It doesn't matter if it's downgraded to XP or Win7. Everything for sale now is 'Windows 8'.
post #38 of 40
Quote:
Originally Posted by logandigges View Post

I've been running 8 in VB for a while now, and it sucks. Metro is useless. It took me days to figure out how to just get back to the Metro 'page'. I had to restart the machine (virtually) and reopen whatever. IE10 in Metro is pretty good (lookswise) but isn't that functional. The new desktop in 8 is pretty much the same. But it takes some getting used to switching from metro to the desktop every time. Here is my breakdown on Windows starting with XP (keep in mind that I actually like XP)
 XP: Completely functional and aesthetically adequate - not fancy, but does what you want
Vista: Do I even need to say this? Buggy, not functional and a complete mess in looks
7: Less functional than anything previously, but almost aesthetically adequate
8: Completely non functional, a mess in aesthetics



PS:
DOS: Completely functional in every way + more, but lacking in looks at all

That really doesn't make much sense. It sounds very clueless. But then, you had to restart to get back to Metro..? I'd be embarrassed to say that in public, though I do admire your honesty.

XP: Poor security, easy to crash with drivers dues to unprotected kernel, poor 64-bit version's compatibility, no new DX and D3D support. Adequate? Only if you are looking for something to hate. 12 years is stone age in IT, whatever people think.

Vista: New driver model, significantly improved security and stability, rock-solid after SP1, GUI updated with some modern cues but still conservative, not significantly improved over XP's philosophy.

7: modern GUI and optimizations on top of Vista's core. Stable, fast, compatible, up-to-date. The most complete Windows yet.

8: after using it in work environment since early September, promising. Took me about an hour to figure out changes over 7. Metro and Desktop not in visual sync, but both functional. Switching between, not a problem for me, but I can accept different styles will be disliked by some. Under (what I see like) common scenarios, people will sit mostly/almost exclusively on Metro or on Desktop. Much improved security, emerging Metro apps are refreshing and will make many casual users happy - heck I am happy with some, much nicer, faster, smoother, more polished than in-browser functionality.

DOS? Really? What's wrong with Burroughs B1700 and it's input switches panel? Abacus works sweet, too.
post #39 of 40
I have shown the preview to a few people, and every one of them said the same thing: "It's time to take a hard look at the Mac."
post #40 of 40

I don't think anyone has mentioned this yet:

 

NO ONE is going to buy a Surface now that the A6X exists in the real iPad. I mean BOOM. I don't like that Apple did this, but there's no arguing that the word "competition" can't even be put into the same sentence as "iPad" anymore.

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