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Vista retreats as XP sales hold up
Users stage last stand against unloved OS.
By Gregg Keizer, Computerworld | Computerworld UK
Published: 06:00 GMT, 23 July 07
Microsoft expects Windows XP to make up a significantly larger part of sales than it had previously expected, at Vista's expense.
Chief financial officer Chris Liddell has told analysts that he expects XP to make up 22 percent of sales in Microsoft's new fiscal year, up from the previous estimate of 15 percent. Vista would make up the remaining 78 percent of Windows sales.
Windows XP sales will, in other words, be nearly 50 percent higher in the next 12 months than Microsoft had estimated earlier.
"We fine-tuned the Vista/XP mix for next year," Liddell said following the release of Microsoft's fiscal 2007 results on Thursday. "We changed it from 85 percent to 78 percent. Now, it's a lower number [for Vista], but it's still a very high number overall from our perspective, so 78 percent Vista mix in terms of sales next year."
According to Liddell, Microsoft will generate the same revenue, more or less, under the new mix, although there might be some slight differences because Vista sales have leant more towards higher-priced “premium” versions, than has XP.
His remarks caught the attention of Michael Cherry, analyst at Directions on Microsoft. "What that seems to say is that XP has stronger legs than you would expect after the release of a new operating system."
Clues that users aren't ready to ditch XP have not been hard to find. In April, for example, Dell retreated from its Vista-only position and said it would offer an XP option for its consumer PCs.
Three months before that, Microsoft extended support to Windows XP Home and XP Media Center to match Windows XP Professional's drop-dead date of April 2014.
"Most of the machines I see pitched in catalogues are in the $700 range, certainly under $1,000," said Cherry. "Computers with that amount of hardware are a better fit for XP. With Vista's requirements, people may be thinking about sticking with XP, and putting less money into the hardware."
It's possible, Cherry added, that Microsoft might find itself forced to recognise more reality in the future. "At some point, they might have to consider limiting the availability of XP," to push people to Vista.
The software developer has made at least one move in that direction already. In mid-April, it announced it would terminate sales of Windows XP to resellers and retail after January 2008. Users' reactions were almost unanimously negative.
Add your commentComments
Jeremy | Published: 23:14 GMT, 03 July 2009
Vista, like the nightmarish Windows Millennium Edition (aka "Emm Eee") is nothing short of a public beta where you have to pay full retail. Complete bullsh1t. Shame on you Microsoft. Windows 7 is looking better, but I'm done getting jerked around. 100% Linux here I come.
Katz of PSM Publishing | Published: 01:06 GMT, 23 September 2007
The overwhelming majority seem to dislike Vista. I actually came to look at this thread to see what other people's opinions were on the new OS. I personally was not impressed at all when I tried it some months ago, seemed quite slow and I really wasn't impressed with Aero at all. I just expected so much better all round. For my business, I've been advising all my customers to avoid Vista, I'm also commonly asked how they can "down" grade from Vista back to XP on other machines they've bought. However, what I despise about Vista is the DRM, I don't think people seem to realise that Vista requires huge resources to run the DRM protection scrambling signals/data one way, then back. Why on Earth pay money for DRM. I personally avoid EVERYTHING with DRM. If DRM is the only choice, I just say no and go without End of story. So I say no to Vista. No to Java DRM'd blu ray, no to DRM'd wma's.
IT Consultant | Published: 20:09 GMT, 30 July 2007
There was some resistance when Microsoft released XP, as it was only marginally better than Windows 2000 Professional. This is different, Vista - in my experience - is a really bad performer. Computers running Vista are too slow and when you remove Vista and install XP they screem. I think it's all about generating money for Microsoft and the computing industry at large, and has nothing to do about producing a good product for the consumer. I recomend against going with Vista to all of my customers, I tell them to stick with XP. Will I start moving all of my client desktops to Linux in the near future - I doubt it. There is the whole learning curve as well as the software compatibility thing to deal with and I don't think that would be in my clients best interests. XP is the way to go for the time being, and hopefully Microsoft will come to their senses and admit their failure with Vista.
guru | Published: 16:03 GMT, 27 July 2007
@ informed user....move forward or stay in the past? that may apply to some things in life, but when it comes to an OS, you don't move forward unless it's stable, dependent, meets your needs, meets your budget, and will work with your software (both old AND new)....and as far as I can tell, vista does none of that...sure move forward in buying a new computer, but why change OS if it doesn't benifit you in any way?
Roger | Published: 21:52 GMT, 24 July 2007
Vista will not work with more than half of our applications... We'll stick to XP for quite a few more years since it'll take that long to upgrade all of of our server based software along with all of our workstations. Bad note for MS since we'll have to retrofit new pc's starting next January. It is really too bad the industry lets MS dictates what you, I, and the rest of the wold do with our computers...
John Quinlan | Published: 19:45 GMT, 24 July 2007
A clear case of consumers voting with their feet. If Micxrosoft does limit the availability of XP, it just may be the shot in the arm people (eg the public) need to start moving en mass to Linux. Does anyone remember "New Coke"?
Anke Bollmann | Published: 19:23 GMT, 24 July 2007
What you didn't realize about Vista is in that, Vista is all about DRM. However, everyone knows the cost of purchasing Vista is the highest cost ever, but who wants to use Vista on their old computer? So that requires a double investment, in purchasing new hardware as well.But, wait, since Vista uses DRM, you had better insure you buy a system board that supports error correcting ram memory, otherwise folks your going to experience what happens when a bit or byte gets scrambled and your software and hardware cannot decrypt the code. What I am saying here is Vista isn't stable on old computers, or even new computers unless it comes with error correcting ram memory. Didn't Microsoft tell you that before you thought to purchase it's operating system? Go prove me wrong for yourself...
informed user | Published: 19:22 GMT, 24 July 2007
Let's get facts straight: 1) Hardware incompatibilities - don't blame MS for all that, blame harware companies that were toooo slow to develop right drivers for Vista 2) Software incompatibilities - MS finally fixed all the bugs and "work arounds" in the OS that were there to support compatibility with old apps from 1992-199X. These bugs were causing lots of security holes etc... So when they were fixed old badly written apps stopped working. Somehow no one blames Apple for doing the same. But MS was always too forgiving and so users got used to the fact that their old apps will work forever. But it is very hard to and expensive to cater to everyone in this big world. At some point you have to choose - go forward or stay in the past... 3) More powerfull hardware - this is true that Vista runs much better on the following config - 2 CPUs + 3D graphic card + 2GB of memory. But this is a pretty basic/average computer setup for almost 9 last months...
Another Small Computer Shop | Published: 18:30 GMT, 24 July 2007
I can really see no compelling reason to move clients to the Vista platform. The hardware requirements are 4x what a basic XP system will consume and the cost is higher. MS seems to be full of marketing degress and no actual field people who see what people need and want. Then again, that is how MS has always operated, tellign everybody what they want and need. We are the IT guys the people in our community go to for advice and to purchase new systems. We can't afford to follow the MS company line.
A. Subram | Published: 17:11 GMT, 24 July 2007
If sales of XP are discontinued, you'll see a greater amount of piracy. It's in Microsoft's interest to continue sales of a popular OS that had more or less successfully phased out older versions of Windows.