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

Posted:
in macOS edited January 2014
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.
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Comments

  • Reply 1 of 41
    Probably includes the copies Microsoft 'purchased' for all of their staff.
  • Reply 2 of 41
    maestro64maestro64 Posts: 5,043member
    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.
  • Reply 3 of 41
    rainrain Posts: 538member
    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.
  • Reply 4 of 41
    Dan_DilgerDan_Dilger Posts: 1,583member
    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.

  • Reply 5 of 41
    MacProMacPro Posts: 19,727member
    I read Apple are buying $100K worth just to give financial and moral support to Microsoft. ;)
  • Reply 6 of 41


    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.

     

  • Reply 7 of 41
    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.

  • Reply 8 of 41
    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.
  • Reply 9 of 41
    gtrgtr Posts: 3,231member


    "competitive pressures"


     


    Why use so many letters to spell Apple?

  • Reply 10 of 41


    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.

  • Reply 11 of 41

    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.

  • Reply 12 of 41
    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.
  • Reply 13 of 41


    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.

  • Reply 14 of 41

    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.

  • Reply 15 of 41


    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...

  • Reply 16 of 41
    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.
  • Reply 17 of 41


    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.

  • Reply 18 of 41


    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.

  • Reply 19 of 41
    quadra 610quadra 610 Posts: 6,757member
  • Reply 20 of 41
    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.
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