Vista Launch Sales Falter at Retail
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Windows Vista got off to a slow consumer start compared to its predecessor. U.S. retail Vista sales were significantly lower than sales of Windows XP during their respective launch weeks. |
NPD released sales figures today for software that users install themselves on their computers. Windows Vista unit sales decreased 58.9 percent in units compared to Windows XP during their respective launch weeks, while revenue decreased 32.1 percent.
Vista's launch starkly contrasts to that of Office 2007, for which sales increased more than 100 percent compared with Office 2003 during their respective launch weeks.
Microsoft launched Windows Vista on Jan. 30, 2007 and Windows XP on Oct. 25, 2001. Some important distinctions:
- Windows XP PCs went on sale about a month before box stock reached store shelves. Windows Vista was available on new PCs and in boxes on the same day.
- Microsoft offers a Family Discount for Windows Vista Ultimate buyers. Windows XP was sold in standard upgrade and full-price SKUs.
- Windows Vista is available in two more versions than Windows XP was.
- Windows XP launched during one of the busiest sales periods of the year, while Vista was released during one of the slowest sales periods.
- More than five years separated Windows XP and Windows Vista. XP predecessors Millennium Edition and 2000 were released about a year and 18 months earlier, respectively.
- Windows Vista benefited from a massive marketing campaign and the simultaneous retail launch of Office 2007.
Conceptually, many of the differences between the two operating systems should favor Vista: pent-up demand, a massive marketing campaign, new versions and lower-cost family upgrades. Chris Swenson, NPD's director of Software Industry Analysis, cited hardware concerns as a major factor likely affecting Vista retail sales.
"All the reviewers have been beating people over the head about hardware requirements," he said. "The preliminary data suggests that consumers are getting the message that they need a more robust system to take advantage of some of the new features in Vista." More consumers are choosing to "get Vista on a new PC rather than at retail."
Deeper in the numbers, good news can be found for Microsoft and retailers.
Retailers are successfully turning Vista hardware concerns into services sales. Services like Best Buy Geek Squad, Circuit City Firedog, CompUSA Tech Pros and Staples Easy Tech offer low-cost Vista installation services.
NPD expects that these services will lead to a "tech bench bump in OS sales similar to the bump in sales that we've seen in security software due to tech bench service offerings, though not as large of a bump," Swenson said.
The volume of Microsoft operating system sales was five times greater during Vista's launch week compared with the same period a year earlier. Microsoft also gained significant benefit from the new SKUs, with new version Windows Vista Ultimate accounting for 30 percent of Vista unit volumes.
At the Windows Vista launch event last month, Brad Goldberg, general manager of Microsoft's Windows Client Product Management Group, told me the company expected Ultimate to do much better at retail than on new PCs.
"The preliminary data shows that Microsoft's gamble on a new high-end Vista SKU will help keep dollar volumes from declining as rapidly as unit volumes in the near term," Swenson said.
Windows ASPs (average selling prices) rose 65.5 percent to $207.13.
"It would have been a bleaker story for Microsoft had they stuck with [just] the Pro version and not introduced Ultimate," Swenson said.
Comments (38)
Lipsticked pig in a poke.
Posted by Mobutu Ubuntu | February 15, 2007 12:18 PM
What a disturbing image. Hard to argue with though, at least until SP1 upgrades the kernel and implements WinFS at long last; that may make Vista a must-have, but for now Ubuntu Edgy Eft (with Beryl for prettiness) will do fine to replace XP.
Posted by Neil | February 15, 2007 6:19 PM
Neil ???
Mate you are not me, if this is a simple mistake fine ... use another name not mine!
If someone is trying to be smart (cough ...cough) I don't like it.
Ubuntu to replace XP ... NO WAY JOSE !
Joe Wilcox keeps on quoting this "NPD Group".
Here is another quote for you Joe remember "Gartner" predicting that Vista would not be ready for the 30th of January and all the other predictions made by them that YOU put on the site.
THEY WERE ALL WRONG, WERE'NT THEY !
Lies. Damn Lies and Statistics JOE !
I have consistently asked you to give Vista more time and you have CONSISTENTLY rolled out this garbage, stop trying so hard to knock Vista !
This is NOT news.. it is SHEER speculation and that's all it is, you WANT people to beleive this crap, so you do evertime you can.
Posted by Neil | February 15, 2007 6:58 PM
Gartner always having the wrong prediction at the wrong time .
Gartner even predict that Microsoft will be the leader in anti-spam business but we are know that Microsoft OEM version of Antigen scored low among others like Ironport and Proofpoint.
I think the overall IT industries in this planet full of bullshit.Gartner , Forester Research , Microsoft Watch (eWEEK) are still prevail although they are producing tone of worthless whitepapers and review and silly predication
Joe , give us a prediction when will Microsoft bankrupt ?
Posted by Daniel | February 15, 2007 9:14 PM
I don’t believe these numbers include online sales and if they do not then this does not really mean much. Online sale were a small part of totals when XP was released online sales are huge now especially where software is concerned.
Posted by Max | February 16, 2007 11:16 AM
So Neil, Daniel, Max,
With Balmer pretty much confirming that sales are started off slower than expected, are you going to concede that your judgements were a bit rushed?
Posted by Wes | February 16, 2007 11:55 AM
There will be a lot of time before I change to Vista. Here we have old Bill donating billions of dollars to africans, chinese and the like and ripping of americans and canadians.
$150 for an operating system is obscene and cannot be justified. Big companies have pretty well decided to stay with XP for a long time yet and I will stay behind and watch and listen to all the problems.
Posted by Gabby | February 16, 2007 4:08 PM
It's a question of FEAR.
We're all afraid that our 'old' printers drivers, Camera software, video cards, and etc. JUST WON'T WORK. We also hear horrible stories about how UAC does or doesn't "really" protect, nags us to death, etc.
Those of us who use big-name AV/Firewall products also have a nagging feeling that maybe McAffoo and Symone haven't had their hands on Vista for long enough to be even remotely near offering 'GOOD' protection. So we're stuck with Microsoft's own "low-quality, can't recognize hardly anything" antivirus.
And finally, we're all worried just how well or how BADLY migrating stuff from "My Documents" to "Documents" (and "my this" to "this", and "my that to that") is gonna break our photo albums, music playlists, and other software....
It's almost certainly not bad at all, for a hands-on computer person. But all the non-expert consumers, this stuff is TERRIFYING. Those 'Vista-Home Basic' computers are gonna sit on the shelves while everyone tries desperately to pay MORE to get 'good old' XP or Media Center. Even though XP and Media Center aren't as good for MOST people, non-experts fear it.
Meanwhile, big-ticket gamers have heard that many their costly titles will work badly, or even fail completely. Also, what '3llt' gamer wants to pay $$$ for a computer with merely a DX-9 video card, and all that DRM overhead eating his CPU alive? And gee, how long before I can even BEGIN to be a 'beta tester' for those NVidia drivers?
So LOTS of people are afraid, or even repulsed, by Vista. And it's really for TECHNICAL reasons, the Marketing budget is fine. The ONLY reason Windoze Vista is selling AT ALL is the fact that MS forced the OEMs to remove all the XP computers from the big-box stores.
Posted by Rick Stockton | February 16, 2007 4:40 PM
And by the way,
$100 or even more for Geeksquad or Firedog (or whomever) to 'move the data' on a $300 budget computer is a pretty big disincentive for the end customers, even if CompUSA and BBY and etc. like the idea of all those C-Notes getting left at the 'tech support' counter.
Posted by Rick Stockton | February 16, 2007 4:45 PM
I've put a trail version of Vista and it was great, but I had to remove it, because right now, I can't afford it, if only the upgrade price was cheaper......
I'll have to wait till they come out with good Educational prices here in Israel!
Posted by Moshe Schindler | February 17, 2007 3:12 PM
My name is Neil. I have never had a girlfriend. So I have to make do defending and operating system from any criticism. Insulting Vista is an assault on my faith. I will become a zealot. I will hunt down and slay anyone who dare to raise a finger in anger at Vista or Microsoft. I still **** the bed and need plastic sheets. My name is Neil and I am a complete moron.
Posted by Neil | February 17, 2007 7:47 PM
It is amazing to see how far some people will go to try and discredit other people isn't it !
Mate I am married with two kids (both very good regarding computers I might add) and you are the moron around here.
Specially when you are too gutless to write under your own name. I am NOT an apolgist for microsoft, but I tell you what you are an example of why there should be more contraception available.
As far as Vista is concerned I feel that people like YOU have not given it are fair go (which we in Australia are famous for giving things/people).
A couple a weeks out on sale and Joe Wilcox has tried everyhting he can to denegrate it !
So what are you a Linux or Mac user ?
Posted by Neil | February 18, 2007 2:25 AM
Here is an update regarding NPD and their view that sales of Windows Vista were down, now they are saying that they may have been work out even with Winows XP !
"Vista Sales Estimates Perhaps Not as Dire as Feared"
By Scott M. Fulton, III, BetaNews
February 16, 2007, 11:45 AM
This morning, NPD marketing manager David Riley offered to clear up some potential discrepancies with regard to how previous NPD launch week data for Windows operating systems has been reported, and how it's currently stated. Accounting for a change in tabulation strategies, what yesterday looked like a 58.9% decline in first-week retail sales for Windows Vista over Windows XP, might actually even out.
The problem, Riley said, is that over the years some retailers surveyed provided NPD with monthly sales data rather than weekly. As a result, NPD decided to no longer extrapolate weekly volume numbers, though for comparison's sake, the company continues to calculate weekly trend numbers, which is what NPD reported yesterday.
However, when you apply those weekly trends to the historical volumes - as we tried to do yesterday - NPD tells us the totals don't match up. Based on what we were told this morning, it appears only half of the retailers surveyed for the historical data figures actually supplied weekly sales data. To make a fair comparison between weekly figures then and weekly figures now, we'd have to know which retailers were the weekly ones and which were the monthly - whose figures should be excluded from consideration.
Thus the trend line - which BetaNews projected yesterday to mean retail sales for Vista could be 25% per day of what they were for XP - would actually not be so steep a decline...if it's even a decline.
Lesson learned: The early trend numbers don't apply historically, and should perhaps be treated like early indicators that Gore won in Florida.
So as I said originally "it was too EARLY for opinions on Vista" and I now feel vindecated !
So Joe don't be so eager to put Vista down !
Posted by Neil | February 18, 2007 5:18 AM
Was Vista's "pent up" demand overrated? I think that most consumers expected more and got less, except an inflated price. Microsoft's aggressive marketing plan may not compensate for public dissatisfaction and cynicism. Still, the year is still young. Let’s see the statistics in six months time after Microsoft releases Vista's service packs. That should be more telling.
Posted by meatofmoose | February 18, 2007 2:08 PM
$AU399 for an OEM version of Ultimate! God knows what the full version will cost. Haven't seen one in the shops yet.
I'm with the other "Neil" (who is a moron).
Linux for me.
Posted by Roger | February 19, 2007 12:42 AM
Biggest problems I have with Vista is that I refuse to spend more money on hardware for two PCs that were just upgraded to 64 bit CPUs last year, just to run Vista. It doesn't like my video cards or some of my peripherals. I also don't trust Microsoft and their intrusive way of doing things. Let ME make my own decisions on security issues, and things like antivirus and firewall protection.
Windows 2000 Pro was the last version of Windows that was worth a damn - which is why millions of people in business are still using it today.
Posted by John Hull | February 19, 2007 8:18 AM
What effect does the high cost of the retail VISTA upgrade packages have on retail numbers? I think most people should wait to buy VISTA as part of a new PC so they don't have to pay Microsoft's exorbitant upgrade prices.
Posted by Jim B | February 19, 2007 9:08 AM
I'm Gay
Posted by NEIL | February 19, 2007 4:41 PM
Neil bashing, thats funny. Ya'll need to talk to Dr. Phil. I don't worry about Vista or XP as much as I do worry about getting laid just one more time.
Posted by Kenny | February 19, 2007 9:19 PM
I have just written a letter to my Dad Bill in the blood of linux users. I have told him that I am dressed like a cheerleader and I am prepared to do whatever it takes in the lockerrs to get people using Vista.
Posted by Neil | February 21, 2007 3:00 AM
Everyone will come around to Windows Vista soon enough, if for no other reason than it was time to buy a new computer. It seems that a stigma exists that no one should use a newly released Microsoft OS until there has been at least one service pack. I haven't been hearing near the buzz about security flaws, etc., as with previous releases. Maybe Microsoft has invested enough energy in their betas and release candidates this time around. Then again, it is still early...
Posted by Spencer Ferguson | February 22, 2007 11:13 PM
Why should anyone have to be subjected to a half-baked operating system? Microsoft spent $6 Billion on it, and prior to its release, I was very excited about a "better" Vista. I'm a huge Robert Fripp fan, and was delighted to learn that the Vista sound bank was created by him.
But, when I actually tried Vista at CompUSA, I was very diasappointed. They are trying to be Apple-like, much the same way Coke changed a tried-and-true formula to become Pepsi-like. That failed, and Vista is failing too.
Software and hardware can be expensive, and I believe that backward compatibility is a must for a proper transition to occur. I even purchased the Vista Premium software, installed it, and not even Fripp's sound musings could keep me from feeling that the introduction of Vista was similar to an elephant stampede - you can hear it coming, it's powerful sounding, and it is chaotic.
Software and hardware developers were not properly prepared for Vista's release, so even the most basic applications were rendered useless. It doesn't matter if Vista is better if it can't accomodate XP software. I reinstalled XP and got my money back.
The folks at Microsoft must already know that they not only took the bread out of the oven too soon, but that they also didn't share the recipe with the software companies.
I have very high respect for Bill Gates, and I believe that Vista will gain in popularity once the bugs are ironed out. But really, couldn't $6 Billion have done the (Steve)job? Bill, it's time for your company to embrace the public with your once-heralded brilliancy and bring to us a fully baked potato with all the trimmings.
Posted by Bill Greenman | March 27, 2007 10:41 AM
I have been gaining a lot of experience using a Vista retail Home Premium on a laptop I bought recently and have next to my XP pro home computer. Learning how to do things the Vista way was a steep learning curve for me. Now that I do know it well enough I definitely prefer Vista security over XP. That said, for me, getting a new computer (for a non-profit use) was the only reason I got Vista.
I figure it will be the standard operating system on computers within two years, tops. Although many businesses will stay with XP Pro, almost all retail buyers will end up with Vista simply because that is what comes in the box.
Posted by Edward Casey | March 27, 2007 8:11 PM
I have just bought a PC for a church from Dell to be dedicated to the multimedia projector - for software that doesn't yet run under Vista, and Dell wanted $40 MORE if I had XP installed rather than Vista.
What does THAT tell you about the price Microsft is charging for Vista to vendors like Dell!!!
Posted by Nigel Chetwood | March 31, 2007 9:08 AM
Image this, you walk into the electronics store and there is a low end laptop for $500, only it has Vista Basic on it. Right next to is the same exact laptop for $380, with either linux, Freedos, or no OS, your choice.
Would you go with the Big Brother Bill OS, with all his crippleware DRM/WGA features, or the other one that u could install whatever you wanted, including past Windows versions you have already paid for and actually have current working drivers. Oh, I forgot, its not MS fault there are not drivers, they don't make em, MS only makes it harder to write the drivers because of their insistance of DRM and tilt bits even in the device drivers, and the fact that MS requires the driver to be submitted to them for testing and certification. Got to make sure nobody is watching a vid they should not.
Good job Neil, tell them M$ shills the way it really is.
Posted by Chips B. Malroy | April 9, 2007 9:10 PM
xp not good i got on order ver 7 ubuntu free cd why pay will over $1000 to get Vista no word cost $300 to $1000 have all for free with ubuntu
Posted by Ken | June 4, 2007 6:44 PM
all version windows vista = bullshit = fack billgate
all driver for windows vista .....wait &&& see = 2012
Posted by freenet | June 11, 2007 6:36 PM
I beta tested Vista ultimate on my dell laptop inspiron 6000. Worked perfectly then I built a custom tower with these specs. it has a
AMD Athlon 64X2 4600,
PCI Express X16 card slot, with a ATI raidon X1950 Pro card with 256MB of GDDR3 ram
2.0 GB of DDR 2/800 system ram
250GB SATA 2 hard disk drive
16X SATA DVD +- R/RW DL burner
2X 1GB/s Ethernet ports integrated.
19 inch wuxga wide screen LCD monitor, DVI in.
The motherboard is a MSI, it supports up to 8.0GB of DDR2/800 ram!!!
It is running XP Pro SP2 for now, works perfect. I am waiting for Vista SP1 then go for the 64-bit version, if improved driver support.
P.S. Im CompTIA A+, and CompTIA Network+ tech.
Posted by William Baldwin | July 25, 2007 8:52 PM
all version windows vista = bullshit = fack is trust
i have a card hauppauge NOVA-S but not work with windows vista
Posted by the end | August 22, 2007 4:52 AM
Yes I entirely agree with the people who are, complain about Windows operating system vista. I think Bates is ripping off, the people of this country, and his own for making a system, which is not fair for consumers. Only his own a bank balance. He is like the majority of American businessmen. They are only out to make a quick buck, and nothing else, nothing else matters. I have spent a lot of money on the programs, which I cannot now we use. When they changed from Windows 2000 two XP. At least, they allowed for programs to be used with those operating systems but no, cannot make enough money. It's about time, they thought of Mr public and not Mr share older. But besides that, I do not think vista is as good as it is all made out to be.
Posted by barry edwards | September 3, 2007 12:03 PM
windows vista Premium € 129
windows XP proffessionnel € 149
i love windows XP pro work good
Posted by windows XP pro | October 3, 2007 5:20 AM
YOU CAN'T DO ANYTHING THAT I USED TO DO,,,LIKE USE THE OUTLOOK EXPRESS WITH HOTMAIL TO SEND A LOT OF PICTURES REDUCED SIZE,,,OR WATCH ABC EPISODES ONLINE,,,,ITS BULLSHIT
Posted by joanna | October 31, 2007 10:45 AM
Neil bashing, thats funny. Ya'll need to talk to Dr. Phil. I don't worry about Vista or XP as much as I do worry about getting laid just one more time.
Posted by oyun | February 25, 2008 10:43 PM
hai sir,
i am trainee test engineer i am working in synergy multitech which is in hyderabad
sir what is the mater is i found a bug in ur
vista xp version
BUG:
REGARDING TO THIS VISTA XP I FOUND A BUG THAT IS
I OPEN DIFFERENT TABS IN ONE IE I FINISHED MY WORK IN ONE TAB BUT UNFOTUNATELY I press ON
"CTRL+F4" AT THAT TIME I DIDN't GET ANY WARNING MSG LIKE "DID YOU WANT TO CLOSE ALL TABS"
BUT WHEN WE CLICK CLOSE BUTTON THE WARNING MSG WILL COME
SIR PLZ VERIFY THAT BUG(INSOME TIMES THE THIS WAS HAPPENING)
Posted by ABHINAV MAJETTI | March 6, 2008 7:56 AM
Neil bashing, thats funny. Ya'll need to talk to Dr. Phil. I don't worry about Vista or XP as much as I do worry about getting laid just one more time.
Posted by oyun | July 27, 2008 12:05 PM
Neil bashing, thats funny. Ya'll need to talk to Dr. Phil. I don't worry about Vista or XP as much as I do worry about getting laid just one more time.
Posted by oyunlar | August 6, 2008 6:03 AM
I have just bought a PC for a church from Dell to be dedicated to the multimedia projector - for software that doesn't yet run under Vista, and Dell wanted $40 MORE if I had XP installed rather than Vista.
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