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Windows 7 driving enterprise PC sales, but Apple's new iPads expected to again hurt PC growth

post #1 of 46
Thread Starter 
Enterprise demand for PCs running Windows 7, Microsoft's previous-generation operating system, is currently boosting the overall PC market, but sales are expected to once again take a hit after the introduction of Apple's new iPad Air and iPad mini with Retina display.

iPad Air
Apple's new iPad Air. | Photo: Daniel Eran Dilger


In its quarterly earnings report on Thursday, Microsoft revealed that though Windows revenue was down 7 percent year over year, the overall PC market seems to have stabilized. Analyst Maynard Um of Wells Fargo noted to investors on Friday that this stabilization has been driven by demand from businesses rather than consumers.

That demand from enterprise is "being driven by Windows 7 refresh," according to Um, who said that Microsoft's previous-generation operating system is now running on more than 75 percent of desktops. That suggests that enterprise adoption of Microsoft's latest flagship operating system, Windows 8, has not been strong.Enterprise customers are more interested in Microsoft's Windows 7 platform than Windows 8, according to Maynard Um of Wells Fargo Securities.

On the consumer side of the PC business, Microsoft indicated to investors that it's hopeful that competitive pricing on laptops this holiday season will help sales rebound. However, Um said he doesn't believe price is the primary issue in the current PC market.

Despite current signs of stabilization in PC sales, Um is not convinced that the trend will continue --?thanks, in part, to Apple's newly announced iPad Air and Retina iPad mini.

"The introduction of new Apple products and other competitively priced tablets could adversely impact consumer PC sales," he said.

The rise of so-called "post-PC" devices, like Apple's iPad, has caused a dramatic shift in the personal computing space. Though Windows remains the dominant platform on traditional computers, Microsoft has fallen behind in the growing tablet space, with some data suggesting Microsoft's share of overall personal computing sales has plummeted from 90 percent to 33 percent over the last five years.
post #2 of 46
Ballmer's replacement is really going to have their work cut out for them. What a mess of a company.

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post #3 of 46
The only PC's experiencing market growth right now are Chromebooks. And the manufacturers have noticed. Everyone is coming out with their Chromebook take.
post #4 of 46

Windows 7 driving enterprise PC sales, but Apple's new iPads expected to again hurt PC growth

 

Windows 7? So much for Windows 8, unless it's a typo.

Guess they're having to upgrade hardware & OS due to the end of XP support, etc.

post #5 of 46
Tablets are not replacing PC's so much as they are lengthening the PC upgrade cycle from 3-5 years to 5-7 years. Enterprises, many of which recently migrated from XP to Win7, are steering clear of Win8. Not only is it too soon for another OS upgrade, but Windows 8 is a significant burden on IT which has to deal with users. XP to Win7 is a no brainer. Win7 to Win8 is a no-go...
post #6 of 46
Microsoft is a soul surfer without body while Apple has the hardware (brain) and software (soul)
post #7 of 46

But, but, but... Windows 8 was supposed to be a substantial upgrade... Surface was supposed to kill iPad... Microsoft TV was supposed to be popular... XBox was supposed to make money... Windows Mobile was supposed to be the next generation of smartphones... Metro UI was supposed to be cool... Windows 8.1 installation was supposed to be flawless... Zune was supposed to lunch iPod...

post #8 of 46
News: iPad hurts PC growth
Not-news: iPad expected to hurt PC growth

One happened, the other is a prediction.

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post #9 of 46
Quote:
Originally Posted by TogetherWeStand View Post
 

Windows 7 driving enterprise PC sales, but Apple's new iPads expected to again hurt PC growth

 

Windows 7? So much for Windows 8, unless it's a typo.

Guess they're having to upgrade hardware & OS due to the end of XP support, etc.

Not a typo. Enterprises, especially larger ones, don't jump on OS upgrades in the early days. My company (100K+ Employees) has been upgrading all our desktop and laptops to Win 7 this year, by year end is the target.

 

I anticipate that is what is happening. We shall see what 2014 looks like.

post #10 of 46
Sales of Windows WHAT ?!?!

LOL - that looks like a type-o, but it's not, and it's hilarious.
post #11 of 46
Quote:
Originally Posted by AppleInsider View Post

Enterprise demand for PCs running Windows 7, Microsoft's previous-generation operating system, is currently boosting the overall PC market
 

Meaning an outdated operating system is boosting PC sales?!

This is really a take home message for the Windows 8 developers. Oh dear has it come that far with M$ already.

 

NB. Tried out the new release of Numbers and I am impressed. The speed gain to the previous version is mind blowing. Leaves Excel for the first time behind.

So far Excel was my first choice when ever I had to do spreadsheet calculation and data visualization with really huge data sets. Otherwise I already preferred Numbers because of it's superior layout capabilities.

It seems MS-Office's days on my Mac's are dwindling.

Since the ability to run MS-Office used for many people to be the main argument to possess a PC rather than an iPad, makes Microsofts position in the near future very weak.

post #12 of 46

Microsoft's profits are up 17% so they're obviously doing something right. The company has a lot of problems but it's easy to overlook the fact that they're still a highly profitable organisation.

post #13 of 46
Quote:
Originally Posted by ScottWilson View Post

The only PC's experiencing market growth right now are Chromebooks. And the manufacturers have noticed. Everyone is coming out with their Chromebook take.

Chromebook is a new netbook.
post #14 of 46
Quote:
Originally Posted by Rabbit_Coach View Post
 

Meaning an outdated operating system is boosting PC sales?!

This is really a take home message for the Windows 8 developers. Oh dear has it come that far with M$ already.

 

NB. Tried out the new release of Numbers and I am impressed. The speed gain to the previous version is mind blowing. Leaves Excel for the first time behind.

So far Excel was my first choice when ever I had to do spreadsheet calculation and data visualization with really huge data sets. Otherwise I already preferred Numbers because of it's superior layout capabilities.

It seems MS-Office's days on my Mac's are dwindling.

Since the ability to run MS-Office used for many people to be the main argument to possess a PC rather than an iPad, makes Microsofts position in the near future very weak.

Numbers is not there yet.

 

Some simple sorts are missing or do not work simply.

Charts do not come close to Excel.

Apple just gutted AppleScript without saying anything? That's irresponsible.

Have you tried using iWork in iCloud collaboration mode? 

post #15 of 46
Quote:
Originally Posted by Rabbit_Coach View Post

NB. Tried out the new release of Numbers and I am impressed. The speed gain to the previous version is mind blowing. Leaves Excel for the first time behind.
So far Excel was my first choice when ever I had to do spreadsheet calculation and data visualization with really huge data sets. Otherwise I already preferred Numbers because of it's superior layout capabilities.
It seems MS-Office's days on my Mac's are dwindling.
Since the ability to run MS-Office used for many people to be the main argument to possess a PC rather than an iPad, makes Microsofts position in the near future very weak.

My wife loves the new Pages. All she said this morning is great! great! great! Lol.

But she hated the new safari because of no cover-flow History.
post #16 of 46
Quote:
Originally Posted by RichL View Post
 

Microsoft's profits are up 17% so they're obviously doing something right. The company has a lot of problems but it's easy to overlook the fact that they're still a highly profitable organisation.

 

 

They're making money from all the wrong things. Certainly not from mobile, which is what the industry is all about today. And that's not limited to just phones. 

 

They're profitable in all the wrong areas. Still living off the Windows/Office cow in this day and age is unacceptable. Which is why they've been making money, but also looking completely idiotic in all the areas that matter in today's market, apart from catering to the IT/non-consumer sector.

They're making a profit, yet they're nowhere in mobile. You can make a profit selling rubber dogshit and still be doing all the wrong things vis-a-vis the competition. MS completely shit the bed in mobile, and their core Win/PC biz is being slowly phased out. This is where all the profit-from-the-wrong-things has brought them: a gradual slide into irrelevance, amid leaner and meaner competition.

post #17 of 46
Quote:
Originally Posted by matrix07 View Post


Chromebook is a new netbook.

Good God, no!

post #18 of 46
Quote:
Originally Posted by RichL View Post
 

Microsoft's profits are up 17% so they're obviously doing something right. The company has a lot of problems but it's easy to overlook the fact that they're still a highly profitable organisation.

Wait until more and more people realize, how much faster it is to learn to use iWorks and how much quicker you are with iWorks to bring your data into a presentable form. I predict within the next year ( unless MS changes dramatically their Office Software {pricing included:no:}) people will start leaving MS-Office behind like rats a sinking ship and then even more people will migrate to tablet computers because of their superior mobility and longer battery life.

post #19 of 46

Ah, how to spin a news article, to focus on the parts you want to hear - about a company that just reported excellent strong results (yet again) - although it was supposed to die several years ago - according to the more biased Apple insider comments.

 

~~Reuters) - Microsoft Corp cruised past Wall Street's quarterly profit and revenue forecasts on Thursday, helped by strong sales of its Office and server software to businesses, sending its shares up more than 5 percent after hours.

 

Too many people here don't seem to get that yes, Microsoft makes more money from business than consumer sales - so isn't visible on the consumer orientated blogs - that's not a crime, it's just a different business model!

 

To the person who said, 'what a mess'... well sorry, but you clearly know very little... Microsoft is a growing, profitable company that operates across an incredibly diverse set of business areas.. a core strength as this allows investment in emerging or low share markets today that drive new profits and solutions tomorrow.  Yes, it's in a tough fight in Tablets and phones... but its a company with the resolve and resources to keep fighting and gain share steadily over time...

 

Yes, Microsoft like pretty much any company has made plenty of mistakes and certainly does not dominate the 'personal computer' (device) market as once it did - but then neither does Apple dominate tablets or phones as they did only three short years ago (a good thing as active competition drives all to innovate and offer better value to customers - both commercial and consumer).

 

So, don't really know why I'd expect informed and educated discussion on a blog comments column - but for those with an interest in reality and balance, don't believe the hype and/or vitriol that some choose to post... look a little deeper and judge each company on their total business...  Google, Apple and Microsoft are all fantastic companies with great skilled people and massive resources..  its great for us all, that their going to fight to win share by improving their products...   and doe some like Microsoft-  they also have a great B2B & cloud business that you may not think matters to you as a consumer .. but almost certainly enables everything from your shopping trip to the bank that helps you pay for it.

post #20 of 46
Quote:
Originally Posted by StruckPaper View Post

Good God, no!

Yes..they sell because they're cheap. If they're expensive, people will buy PC instead.
post #21 of 46
Quote:
Originally Posted by MsftMacMan View Post

Ah, how to spin a news article, to focus on the parts you want to hear - about a company that just reported excellent strong results (yet again) - although it was supposed to die several years ago - according to the more biased Apple insider comments.

~~Reuters) - Microsoft Corp cruised past Wall Street's quarterly profit and revenue forecasts on Thursday, helped by strong sales of its Office and server software to businesses, sending its shares up more than 5 percent after hours.

Too many people here don't seem to get that yes, Microsoft makes more money from business than consumer sales - so isn't visible on the consumer orientated blogs - that's not a crime, it's just a different business model!

To the person who said, 'what a mess'... well sorry, but you clearly know very little... Microsoft is a growing, profitable company that operates across an incredibly diverse set of business areas.. a core strength as this allows investment in emerging or low share markets today that drive new profits and solutions tomorrow.  Yes, it's in a tough fight in Tablets and phones... but its a company with the resolve and resources to keep fighting and gain share steadily over time...

Yes, Microsoft like pretty much any company has made plenty of mistakes and certainly does not dominate the 'personal computer' (device) market as once it did - but then neither does Apple dominate tablets or phones as they did only three short years ago (a good thing as active competition drives all to innovate and offer better value to customers - both commercial and consumer).

So, don't really know why I'd expect informed and educated discussion on a blog comments column - but for those with an interest in reality and balance, don't believe the hype and/or vitriol that some choose to post... look a little deeper and judge each company on their total business...  Google, Apple and Microsoft are all fantastic companies with great skilled people and massive resources..  its great for us all, that their going to fight to win share by improving their products...   and doe some like Microsoft-  they also have a great B2B & cloud business that you may not think matters to you as a consumer .. but almost certainly enables everything from your shopping trip to the bank that helps you pay for it.

Quality post. IBM is still around. Microsoft too can be around for a long time.

But for a part in bold please educate yourselves with this excellent article:
http://ben-evans.com/benedictevans/2013/10/24/ipads-and-self-selection
post #22 of 46
Quote:
Originally Posted by StruckPaper View Post
 

Numbers is not there yet.

 

Some simple sorts are missing or do not work simply.

Charts do not come close to Excel.

Apple just gutted AppleScript without saying anything? That's irresponsible.

Have you tried using iWork in iCloud collaboration mode? 

Numbers not there yet?

 

By What I mentioned in my post it certainly surpassed Excel by quite a margin. I know some graphs are still not available in Numbers. But many things in Numbers are so much superior to Excel or simply non existent.

 

AppleScript?

 

I think Automator replaced AppleScript quite a while ago.

 

And no, iCloud collaboration sounds great, but I haven't tried it out yet.

post #23 of 46
Quote:
Originally Posted by RichL View Post

Microsoft's profits are up 17% so they're obviously doing something right. The company has a lot of problems but it's easy to overlook the fact that they're still a highly profitable organisation.

It's easy to have a profit when you sell old software. The fact they still had a profit after not selling new products is the amazing thing. Of course I did read something about Microsoft cooking their books a bit to get this profit.
post #24 of 46
I like Windows 7, not enough to switch, but it's pretty decent.

Couldn't get on with Windows 8, maybe 8.1 helps.

Our company is upgrading from XP to Windows 7 shortly, having around 17,000 staff members in the UK alone will be a nice juicy revenue stream for MS.
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post #25 of 46
At my work, are replacing all our XP computers with Win7 right now. And only because MS is discontinuing support for XP.

So that's how they get their revenue stream. They discontinue support for an old technology (which they must at some point) forcing those to upgrade.

Effective strategy for the short term, but it will only work for so long, and gives them some breathing room to fix their strategy going forward into the future.
Edited by mrboba1 - 10/25/13 at 8:54am
post #26 of 46
Quote:
Originally Posted by Rabbit_Coach View Post
 

Meaning an outdated operating system is boosting PC sales?!

 

Businesses tend to be cautious with OS upgrades. Win 7 is not the newest kid on the block, but it's a proven system. And it will be supported all the way to 2020. 

post #27 of 46
Originally Posted by d4NjvRzf View Post
And it will be supported all the way to 2020. 

 

Besides that, XP’s support ends next year, so the whiners using FOURTEEN YEAR OLD SOFTWARE have to update to something.

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post #28 of 46
Quote:
Originally Posted by MsftMacMan View Post
 

Yes, Microsoft like pretty much any company has made plenty of mistakes and certainly does not dominate the 'personal computer' (device) market as once it did - but then neither does Apple dominate tablets or phones as they did only three short years ago (a good thing as active competition drives all to innovate and offer better value to customers - both commercial and consumer).

 

We all know, that we will have to deal with MS for quite some time to come. And who knows, maybe they start to become a little more acceptable with coming changes in the upper cadre.

 

And no Apple still dominates the tablet market. To say otherwise is simply ridiculous.

And no Apple never dominated the phone marked. It reinvented the Smartphone marked and gave it a new push, but even there it's not quite correct to say, that it dominated that segment.

post #29 of 46
Quote:
Originally Posted by d4NjvRzf View Post
 

Businesses tend to be cautious with Windows-OS upgrades. Win 7 is not the newest kid on the block, but it's a proven system. And it will be supported all the way to 2020. 

I corrected that for you.

 

With Mac-OS or even Linux-OS no company needs to wait 10 Years to upgrade. A month or two are more than sufficient for the most cautious IT guys.

post #30 of 46
Quote:
Originally Posted by elmoofo View Post

Sales of Windows WHAT ?!?!

LOL - that looks like a type-o, but it's not, and it's hilarious.


I think most enterprises are waiting for Windows X.
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post #31 of 46
The organisation I work for of 300 staff has recently upgraded to Win 7. The reason given was other software upgrades including windows server meant they had no choice. We were promised a better experience but sadly still lots of ongoing IT problems. Now our IT staff say we need to upgrade MS Office 2003 to 2010 as there are known issues. So on it goes with businesses apparently locked in to buying MS. At home I have finally given up with MS and purchased an iMac. No regrets so far, especially after Apple started to give away some great software and Mavericks. Everything seems to work. I am not sure if Apple will easily change company software habits, even though, if my experience is typical, they would have far less software problems to manage. Looks like MS have the business users in the palm of their hands.
post #32 of 46
Quote:
Originally Posted by matrix07 View Post

Chromebook is a new netbook.

Can a Chromebook be wiped to install Linux instead?

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post #33 of 46
Quote:
Originally Posted by elmoofo View Post

Sales of Windows WHAT ?!?!

LOL - that looks like a type-o, but it's not, and it's hilarious.

No, it's large scale business and enterprise computing.  You know, the market Apple abandoned. 

 

Do you laugh at people still running Lion or Snow Leopard?  Same difference.

post #34 of 46
Quote:
Originally Posted by Tallest Skil View Post
 

 

Besides that, XP’s support ends next year, so the whiners using FOURTEEN YEAR OLD SOFTWARE have to update to something.

 

Yup...but it was RTM August 24, 2001 so just 12 years and 2 months old yesterday...

post #35 of 46
Originally Posted by Conrail View Post
You know, the market Apple abandoned. 

 

lol.

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post #36 of 46
Windows is crap. Planned obsoleted junk.
post #37 of 46
Quote:
Originally Posted by karmadave View Post

Tablets are not replacing PC's so much as they are lengthening the PC upgrade cycle from 3-5 years to 5-7 years. Enterprises, many of which recently migrated from XP to Win7, are steering clear of Win8. Not only is it too soon for another OS upgrade, but Windows 8 is a significant burden on IT which has to deal with users. XP to Win7 is a no brainer. Win7 to Win8 is a no-go...

totally correct. my company has about 50 PC's. all are W7 by now. none of the proprietary programs we have to use are even W8 ready. and Server 2012 - optimized for W7 - is the core of the system. never going to touch W8 with a ten foot pole. W8 is DOA for enterprise, and crap for consumers. only Windows nerds actually like it. and putting crap on a tablet gets you nothing but a crap sandwhich. on toast.
post #38 of 46
Originally Posted by AppleInsider View Post
That demand from enterprise is "being driven by Windows 7 refresh," ...

 

Why Windows 7?  

Two simple reasons:

 

1. Windows 7 fixed most of Vista's bugs.

2. Windows 8 is just too weird.

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post #39 of 46
Quote:
Originally Posted by SockRolid View Post
 

 

Why Windows 7?  

Two simple reasons:

 

1. Windows 7 fixed most of Vista's bugs.

2. Windows 8 is just too weird.


3. We aren't going to buy touchscreens for everyone.

post #40 of 46
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