Report: Ballmer Tells Employees Windows 8 Sales Need Improvement
July 25, 2013 12:37 PM
comment(s) - last by
But Ballmer says improvements, including a new Surface and a new Metro Start Button, will win customers back
At a quarterly all-hands type
, Microsoft Corp.'s (
) boisterous and ebullient CEO Steve Ballmer was more sedate than usual. While he raved about the
upcoming next generation Surface tablet
-- which was garnering rave reviews internally -- he also reportedly owned up to an unpleasant fact that Windows 8 isn't selling well.
The news -- which was pretty much a known fact to analysts and tech enthusiasts already -- came shortly after Microsoft's major leadership shakeup, in which it
put the people in charge of Windows 8
(Julie Larson-Green, Tami Reller)
in charge of key leadership positions
over the entire company.
Revenue for the Windows unit
dropped 55 percent
(-$1.3B USD) in the second calendar quarter of the year (Microsoft's fiscal Q4 2013). After beating street expectations the previous quarter, Microsoft saw its efforts unravel badly with
sales of both Windows
embattled first generation Surface
sinking to Vista-like levels of market apathy.
Windows 8 is turning into a nightmare for CEO Steve Ballmer. [Image Source: AP]
Microsoft and Mr. Ballmer came under fire from some of their major partners. Samsung Electronics Comp., Ltd. (
) blamed Microsoft for drooping PC (and by proxy semiconductor component) sales. Jun Dong-soo, head of the memory chip unit who sells DRAM and NAND to PC makers,
called Windows 8 "less competitive"
and complained, "[It is] no better than the previous Windows Vista platform."
Those are pretty harsh words coming from a major partner.
At the meeting Mr. Ballmer tried to convince employees that the free
update would make up for the flop of its predecessor. He pointed to
the return of a "Start Button"
Start Button you used to know) and the use of telemetry data to improve weak spots in Windows 8 as critical keys to the turnaround. He also discussed increasing spending on professional services (consulting), although the leaks from the meeting made it unclear whether Microsoft is looking to recruit outside consultation for itself or make money off providing it to others.
Ballmer thinks a new Metro Start Button will thrill Windows fans back to the ranks.
In the second calendar quarter Google Inc. (
ChromeBooks gained major ground on Windows PCs
, establishing a beachhead of approximately 4-5 percent of total personal computer sales, and a quarter of <$300 USD personal computer sales. Some OEMs such as Samsung and Acer, Inc. (
) (another prominent critics of Windows 8) have
turned to Chromebook offerings
, and may be eyeing dumping Microsoft entirely, shoudl consumers continue embracing Google's offerings and rejecting Microsoft's.
Microsoft can take some solace in that Apple, Inc. (
sales of its Mac computers miss expectations
, leaving Google the only clear winner in the PC market for the quarter.
This article is over a month old, voting and posting comments is disabled
RE: MS just doesn't get it...
7/29/2013 6:47:45 AM
I think that (one of) the big problem with Windows 8 is that you have apps which behave differently on desktop, compared to the modern interface. Having two versions of IE, Lync etc is really dumb and difficult to explain to end users, what the difference is and why it matters. iPad doesn't have two versions of Safari. If I have my full screen MS Lync running at the same time as my desktop app Lync, the results aren't pretty.
There are also apps which could never hope to run as full screen full touch apps, like Visual Studio, and I do think that touch screen apps need to be considered differently in terms of their design, so hmm, Microsoft have pushed themselves down a very tricky road here...When I'm using a touch screen Windows 8 tablet and am in desktop mode, its all a bit painful to use: the keyboard doesn't pop up whenever you need to use it, and some webpages and apps just don't work correctly (like Chrome).
I don't see why it is isn't possible to just have profiles saying what sort of device you are using, like in Media Centre setup and Windows just gets customised for your install. That would be a one size fits all approach which works and would seem to keep a lot of people happy! Windows 8 contains lots of cool technology like Hyper-V on the desktop and the improved copying, global search etc. so it is a real shame that it is the Modern UI which has sunk the ship and stopped people appreciating the hard work which has obviously gone into it!
On a slightly selfish note, I hope MS does not go down because my business is SharePoint, and there is the risk that people will start to turn away from Microsoft entirely. I already find that what would have been laughable options 5 years ago such as Google enterprise apps and OSX/iOS in the workplace are taken seriously now, simply because MS have shown such poor judgement of late in some of their most highly publicised products, and people had managed for so long in an increasingly mobile device-centric business world without access to MS Office or Windows, that it has got them thinking. On the server end, MS is clearly moving towards the Cloud services model for most of its products rather than on premise, and there, MS Azure is having to complete heavily with Google and Amazon. It's going to be interesting...
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
Apple's Q3 Earnings, iPhone Sales Beat Analyst Expectations
July 24, 2013, 12:00 PM
Microsoft Takes $900M Charge on Surface Flop
July 18, 2013, 6:40 PM
Quick Note: Samsung Chromebook is Top Selling Notebook on Amazon
July 18, 2013, 2:16 PM
Microsoft Streamlines; Leadership Team Shuffled, But Largely Unchanged
July 11, 2013, 2:19 PM
PC Shipments Fall Nearly 11 Percent in Q2 2013; Lenovo Beats HP as Top Vendor
July 11, 2013, 10:58 AM
Quick Note: Pier Solar and the Great Architects Coming to the Wii U in HD
December 6, 2013, 4:56 PM
Microsoft Channels LittleBigPlanet and Minecraft With "Project Spark" Beta
December 4, 2013, 9:14 AM
Software Firm Apptricity Receives $50 Million in U.S. Army Piracy Lawsuit
November 29, 2013, 11:42 AM
EA and Tiger Woods Part ways, EA Sports Offers First Look at Next Gen Golf Game
October 29, 2013, 9:27 AM
Quick Note: Trial Versions of iWork, Aperture Updated for Free by Mac App Store
October 24, 2013, 12:53 PM
Crytek "Warface" Opens New Era of AAA In-Browser FPS Gaming
October 22, 2013, 3:00 PM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information