Windows 8 Beats Windows 7, Sets New Sales Record
November 28, 2012 12:29 PM
comment(s) - last by
Windows 8 is the next Windows ME? The sales numbers suggest that accusation is malarkey
Windows 8 was an incredibly bold redesign on the part on Microsoft Corp. (
). The move to a more
operating system certainly seemed to mirror the general direction of the device market, but that did not shield Microsoft from loads of criticism. Many wondered whether it
went too far with the graphical gloss
, whether it was
with its shift to a walled-garden "Windows Store" app distribution model, and whether it was
forsaking traditional desktop power users
I. Windows 8 Upgrade Sales: Very Strong
But the proof is in the sales, and Microsoft announced today that for all the haters, Windows 8 appears to be doing great.
first month of sales
Windows 8 has moved 40 million licenses, according to Microsoft. The company announced the news in
a blog post
and at a conference presentation. It also points out that buoyed by
reduced upgrade fees
, the Windows 8 upgrade rate is outpacing that of Windows 7, the
previous sales record-holder
our own polling
shows that the majority of users are upgrading to Windows 8, although there are certainly many holdouts bitter about the changes.
While some upgrades have been via disc, the new OS has largely been digitially distributed.
[Image Source: The Verge]
Windows 8 is the first Microsoft OS to transition to a
primarily online distribution
. That shift has not seemed to adversely impact sales. It appears Microsoft timed its transition to disc-less media correctly.
II. The Road Ahead
Microsoft's Brandon LeBlanc also brags that
its Windows Store
is thriving, writing:
There were more apps in the Windows Store at launch than any other app store at their launch and since then, the number of apps in the Windows Store has doubled. A number of apps in the Windows Store have crossed the $25,000 revenue mark and the developer keeps 80% of the revenue they make off downloads for the life of their app. A lot of great new apps have been added to the Windows Store since launch such as CBS, ABC News, ABC Family, Engadget, Flixster, OWN (Oprah Winfrey Network), Vimeo and my (current) personal favorite - Top Gear.
A strong app market is good news for Microsoft. While it offers a more favorable revenue split than other players like Apple, Inc. (
) or Google Inc. (
) (with developers keeping 80 percent of the revenue), Microsoft still is closing the loop to include itself in Windows software sales profits.
In the past, Windows Certification processes offered up small cuts to Microsoft, but software publishers largely pocketed these profits. Now Microsoft has cut out the middle man by playing super-publisher with Windows 8, the same move Google and Apple have made with their mobile and personal computer platforms (although Google does allow unofficial third party channels).
Microsoft needed a bold reinvention in the mobile direction to keep up with market trends.
[Image Source: Bloomberg]
Looking ahead, Microsoft has a lot of unanswered questions -- most notably on the leadership front. Windows 8 was
departed Windows President Steven Sinofsky
. His shoes are currently being filled by former CFO and CMO Tami Reller on the business/marketing front and by Internet Explorer, Office and Windows interface veteran Julie Larson-Green on the software/hardware development front.
And the deep divisions between those who love Windows 8 and those who hate it, could hint that sales may dip to a slower pace than Windows 7 after the fans have completed their upgrades.
But, given the already modest success, and given the life-or-death need for Microsoft to have a cohesive, touch-friendly mobile platform, it appears overall Microsoft made the right choice. Windows 8 isn't perfect, certainly and as they say, haters are going to hate. And that is certainly true of Windows 8. But it's better to be hated for innovation than panned for lack thereof.
This article is over a month old, voting and posting comments is disabled
11/28/2012 6:22:27 PM
Microsoft makes their money from software, none of the other companies you mentioned do. Google makes their money from advertising, Apple makes their money from hardware.
That said, Microsoft selling their OS for so little may have a surprisingly small impact on their bottom line. The number of people building their own machines and doing self-upgrades has been declining over the last ten years with the rise of the laptop. Giving it away for a fraction of what they used to to a very small part of their customers may be a calculated risk worth taking, and they still make what they're "supposed" to from OEMs.
It boosts the number of installations from the small DIY audience who otherwise would have stuck with Windows 7 and wouldn't have gotten it anyway. Cash is going to come in from OEMs no matter what since MS has a lock on that market.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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