Microsoft Sees Stronger XP Sales in FY08

Rude Awakening wrote with a PC World article, saying that XP sales will actually be higher next year than they were in 2007. Despite Vista's release, Microsoft admitted this week that it expects the previous version of its operating system to make up a larger percentage of its OS sales in 2008. "According to Liddell, Microsoft will generate the same revenue, more or less, under the new Vista vs. XP numbers, although there might be some slight differences because Vista sales have tended to involve more of the higher-priced versions, dubbed premium by the company, than has XP. The financial forecast didn't spell out that directly, however. The only clue was a US$120 million difference in what Microsoft pegged as the 'undelivered elements' it assigned to unearned income for the coming year."

Comments

Re:Microsoft Says

[cheater512]

Um...XP sales increasing AFTER Vista is released either means that the sale of computers has jumped exponentially or people dont want Vista.

If people dont want Vista then I cant see their sales being very high.

Re:Vista Sucks...

[Conor Turton]

XP may have had more holes in it but it just WORKED. I can't say the same for Vista at all. Oh how short a memory you have. For a start SLOW NETWORK SHARES BROWSING which is still a major issue on XP. XP when it first came out had a whole slew of issues and SP1 did a massive job of clearing them up. In fact, it can only really be argued that XP fully matured with SP2. Drivers were less of a problem because XP was based on Win2k, so you could always try Win2k drivers, but for those of us who've been around a while, we can remember the problems with Win2k driver model caused in the early stages.

The same is happening with Vista. Remember that like Win2k, Vista uses a different driver model from what came before. Drivers will improve, service packs will address the issues. 3 years from now, you'll have forgotten about the problems existing.

Re:A couple reasons for this

[aborchers]

Exactly. The corporate world is always miles behind. My company is just still malingering on 2K on a lot of boxes, just now getting to XP. Big companies are not known for leaping forward into new and unproven technologies, especially when most of the improvement is just user eye-candy.

Re:A couple reasons for this

[NeoTron]

I, for one, run Linux practically exclusively on my machines. However, my sister-in-law, for example, wanted to purchase a new laptop. Now, the particular model she wanted came with Vista, but I advised her to get the shop to install XP instead, for numerous reasons (the incompatibility with a lot of older programs, drivers, etc. (I'm too lazy to list ALL the reasons right now)), so she has followed my advice and is a happy person. The point of this post? Vista, in my opinion anyway, is rather like Windows ME of the past - a bit of an abortion from Microsoft - they have quite obviously released Vista FAR too early - it's an unfinished product, rushed out of the factory, because it perceived its competitor's products (Linux-based, OSX-based for example) being released with certain innovations which it wanted to claim for itself as its own innovations, and now because of that is paying the price of that rush. People percieve Vista to be what it is - a rushed out Operating System with many bugs, failed claims, and as a - to be extremely kind - beta quality product at the very most.

Nothing New Here

[Prototerm]

I'm a consultant and get to talk with IT folks in various organizations. When I ask their opinion of Vista, it's like they just sucked on a lemon. XP is bad enough -- a lot of their computers are still running 2000 -- but Vista is not an option. There are two reasons: hardware drivers that they've heard are either buggy or unavailable for existing equipment, and the inability of existing computers to run it. Not to mention the high cost of new computers capable of running it. Everyone has gotten used to being able to buy cheap, name-brand machines for the organization. Then there's the concern about mixing Vista with XP in the organization. Supporting the users on Vista is no slam-dunk.

It will take a while for these organizations to start buying into the whole Vista thing, and will only happen once the older computers and peripherals are retired. Until then, and only then, XP will remain the preferred operating system over Vista. This shouldn't be earth-shaking news, since a lot of old companies are still using older versions of windows (I wouldn't be surprised if there are still a few Windows 98 and NT4 installations out there), and are only now considering a migration to XP. Microsoft justs needs to have a little patience. Vista will start gaining traction with these organizations in 2009.

Meanwhile, in other news ...

[PPH]

... Ford announces continued strong sales of the Edsel.

Requisite bad car analogy: The incorporation of numerous 'advances' in automotive technology have fueled a healthy market for older models.