Who's Buying Which Vista?
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I spent about an hour watching people shop at the local CompUSA, today. While an unscientific survey of sales, the experience revealed some things about Vista and the retail channel. |
CompUSA has the biggest Office 2007 and Windows Vista displays of the three major computer retailers in the Washington, D.C. area--the other two being Best Buy and Circuit City. CompUSA has one massive display and several others throughout the store.
The computer section told a dismal story. Well more than half the computers on display had Windows XP or Media Center Edition. In the Sony store within the CompUSA store, four of the seven computers had Windows XP. CompUSA's computer section sharply contrasted with the local Circuit City, where only Vista PCs were on display.
A stack of boxed HP Windows XP Media Center PCs in the aisle is one explanation, suggesting the store had leftover inventory from the holiday selling season. As I explained in November, this holiday season presented unique inventory problems for retailers. In past years, retailers and PC manufacturers could unload excess inventory during January, usually discounted. With Vista available on January 30, stock not sold by the end of December risked sitting on the shelves.
Those few PCs with the new operating system carried either a "Windows Vista Basic" or "Windows Vista" sticker. The store had no PCs on display with Ultimate preinstalled.
During the 60 minutes in the store, not a single person purchased a Windows Vista PC. However, I did see two people carrying out Windows XP computers--both notebooks. I assumed buyers didn't know better (how could they miss all the Vista displays) or bought for another reason, such as low price.
The big business at CompUSA appears to be selling Office 2007 and Windows Vista boxed copies--hence, all those retail displays. But there has been no mad rush--instead a steady trickle of buyers, a couple of sales associates told me. They also said that the majority of sales have been Premium Upgrades, with occasional "people in suits," buying Ultimate upgrades.
Windows Vista sales shouldn't be evaluated based on one store in one market (Rockville, Md.), but it nevertheless can gauge the direction of the wind. Average household income is around $75,000 (probably more, but different reference sources had contradictory data).
That said, the Premium and Ultimate sales mix contradicted the sales expectation set by Brad Goldberg, general manager for Microsoft's Windows Client Product Management Group. On Monday, he told me, "We think their will be high demand for Ultimate among enthusiasts," specifically referring to box sales. "The enthusiasts are going to be most likely to buy upgrades," he added. During the interview, I asked for clarification to make sure I rightly understood his meaning.
At the one store , anyway, business users appeared to be Ultimate buyers--or stated another way, people with enough income to justify the $259 upgrade.
I briefly looked in on the local Best Buy and Circuit City stores, where cashiers indicated modest Vista sales. By contrast, the TV sections were hopping in all three stores. I caught part of a conversation one woman had on her cell phone. The big-screen TV she wanted cost $2,500, which was too much. She sounded desperate to find the right TV and get it home. After all, tomorrow is Super Bowl Sunday.
Comments (26)
Nice work, Joe. This anecdotal, simple random sample of "1" (store) indicates even box sales of Vista, the lifeblood of Microsoft's cash cow, aren't taking off as one would expect.
I think it strange that XP was bought instead of Vista for a few of those box sales and that, just perhaps, the sales people aren't too jazzed on Vista, either.
Though too soon to tell, if this trend continues it would seem that there is not enough lipstick in the universe to paint this product as a beautiful solution to ignored customers current operating systems problems. If, indeed, customers perceive any current Windows OS problems...at all!
Posted by Ray Myers | February 3, 2007 4:16 PM
Hey, This isn't scientific either, but I saw Jim Allchin at the Mac Store buying a $600 Mac Mini and a $1999 30 inch HD cinema display.
Posted by Snark | February 3, 2007 4:29 PM
Come on, what a useless column. "I stood in CompUSA for an hour in February and I think it means something." It means you are a failure. This is just a more verbose version of the often trashy pseudo-commentary on blogs like Gizmodo or Engadget. At least they are quicker to read. My last visit here.
Posted by Brian | February 3, 2007 7:50 PM
Joe Wilcox
You never cease to amaze me with your "cutting edge" journalism ! (Cough..Cough)
Another "No News" days hey Joe !
So you went out and made your OWN !
I am not saying you made this up at all, I am saying that if you are going to do a study of sales ... do it properly will you ! A little longer than a hour would be a very good start !
Say like a week preferably longer even.
I agree with the other commenters here ... basically Joe you are full of c**p !
Posted by Neil | February 3, 2007 8:15 PM
I won't even pirate Vista.
It is the most user locked out windows version ever.
I HATE windows xp for the fact I cannot install on an unlimited number of pc's without a license renewal.
How communist can you get locking the user out of their own hardware?
Doe's anyone know they're planning encrypted hardware???
I don't want an xbox computer system thankyou.
I want freedom of choice even if it is to use an illegal product IT IS MY DAMN CHOICE!
Posted by Joseph Francis | February 4, 2007 8:42 AM
This is a supplimental comment.
I have never in my time been more furious about windows.
Windows 2000 was bad enough when I tried to put a hard drive into another system to boot.
So what am i going to do?
I am still going to use my windows 98se.
I have removed internet explorer and outlook express replacing them with mozilla.
I don't want hardware that is tested to comply
with communist software.
Microsoft is gonna die with its genuine advantage.
There are heaps of alternative places to get the goods.
the genuine windows IS PIRATED! WITHOUT NAGGING ACTIVATION AND WITHOUT THE FREEDOM OF CHOICE REMOVED AND FREEDOM TO CUSTOMIZE!!!
Never have i been dissapointed by pirate links I have licenses for at least 50 variants of windows!
I have never ever registered because I DON'T WANT TO OK?
I am sick of being judged by a communist monopolizing and political bunch of nerds!
thankyou!
Posted by Joseph Francis | February 4, 2007 8:51 AM
Brian called Neil, after posting here and urged him to don his Shill garb so they could double-team Joe. Joe is our breath of fresh air in this industry so you won't jade him any time soon.
Don't it always seem to go that you don't attack a point of view unless it is perilously close to the truth? Brian? Neil? How's it feel to work for a company that has no useful mission except to poorly mimic the good works of others? Microsoft...the Pilot fish of the new millennium; little tail justa' flappin' tryin' to keep up. All that cash and nothin' useful to spend it on. Tsk!
Posted by Brian Neil | February 4, 2007 8:53 AM
Joe Wilcox just inspired me. The next time I'm asked to get an sales estimate, I'm just going to stand in the store and watch people for an hour, then turn in the results to my boss... LOL...
Posted by Bob | February 4, 2007 12:21 PM
Joe Wilcox just inspired me. The next time I'm asked to get an sales estimate, I'm just going to stand in the store and watch people for an hour, then turn in the results to my boss... LOL...
Posted by Bob | February 4, 2007 12:21 PM
Joe Wilcox just inspired me. The next time I'm asked to get an sales estimate, I'm just going to stand in the store and watch people for an hour, then turn in the results to my boss... LOL...
Posted by Bob | February 4, 2007 12:22 PM
I love when microsoft comes out with something new, because my business increases ten fold. Many of my customers are waiting only because they do not want to become guinea pigs for security reasons. another few are waiting for OS X leopard. Some SMB's dont want the hassel of updating and changing when they finally are used to XP.And of course - the cost.it's all about the green. Keep up the good work Microsoft.
Posted by John | February 4, 2007 12:32 PM
I love when microsoft comes out with something new, because my business increases ten fold. I agree with the artical and I have also hung out at the local Compusa and experienced the same results.Many of my customers are waiting only because they do not want to become guinea pigs for security reasons, thier comments are they'll wait for SP1,2,3 ect. another few are waiting for OS X leopard. Some SMB's dont want the hassel of updating and changing when they finally are used to XP.And of course - the cost.it's all about the green. Keep up the good work Microsoft.
Posted by John | February 4, 2007 12:36 PM
On Amazon.com, Vista Ultimate Upgrade is currently #5 on their Software Bestsellers List. It's their best selling version of Vista. The only software selling more is tax software, and MS Office Home and Student 2007.
http://www.amazon.com/gp/bestsellers/software/ref=sv_sw_1/104-8400423-4542301
Posted by JohnJ | February 4, 2007 12:49 PM
Who the heck would buy a Vista Upgrade? Industry Hacks most likely? It will be interesting to watch how Vista hangs over the coming weeks on the best seller list?
Apple computers are no longer dominates the "Best Sellers" list for PC's either. Vista loaded Sony's and HP's now make at least a respectable showing (even though the superior Apples still dominate the 1 and 2 slot).
http://www.amazon.com/gp/bestsellers/pc/ref=pd_ts_pc_nav/104-5111732-0123137
Too bad Amazon doesn't sell Ubuntu Linux. Oh Yeah, it's free and super easy. You should try it Bob and John, might help with the double post.
Posted by Amazingon | February 4, 2007 4:19 PM
WHO THE HELL IS BRIAN ??
Do not try and dismiss me by trying to make out like I am someone else.
I stand by my comments Joe, now I want you to do some REAL journalism mate !
Posted by Neil | February 4, 2007 7:44 PM
Let's see; I can buy a machine that I know how to work around, that works with my other machines, and that can be used with a Mac--or I can buy a machine with Vista.
D'oh!
Posted by Ken Houghton | February 4, 2007 11:05 PM
every one i know and been to setup and install vista at home have got the OEM ver (Norm Home Prem) most of them do not see the point in playing 100 more for an box
(not turing this into an OEM Vs Retail please if needs be Actervated it can be done over phone to India M$ call centers or there auto phone service,you just need to pick the right options)
Joseph Francis :
the Vista enterprise probly is for you as M$ do not need to know you
Posted by lee | February 5, 2007 5:37 AM
I'd have to say that if I bought a PC now it would have to contain XP and not Vista. I'm ticked off myself over the new license issue surrounding upgrades. Given hardware's likelihood of failure these days and Windows tendency to go to pot spontaneously, I want and need the ability to pop in a new motherboard and not have to shell out another 300 bucks for another copy of the OS. I don't plan to install it on a hundred machines, I have two and both have legitimate licenses. But if I want to upgrade my video card it should have a MS tax attached to it.
Posted by T | February 5, 2007 7:21 AM
Joseph Francis, you are clearly someone who has always pirated Windows and now you are gravely offended that they are not making it easy for you to steal it again. Your so-called "freedom of choice" is an euphemism for freedom to pirate anything without any limitations. Well, I guess Microsoft just crashed your party and you are again caught with your pants down. It's tough to run with your pants down, plus your willy might catch a cold.
Either don't be so stingy or stop whining and switch to Linux already. Buying and activating Windows will only cost you as much as a night out or less.
Posted by Brad Freeman | February 5, 2007 8:02 AM
On a side note, but related, I did see HP computers at our local Sam's Club that came preloaded with Windows Vista Ultimate. It was a high end model that came with a 22" lcd monitor and was the most expensive PC in their stock at over $1700.
Their other PCs and laptops all had a version of Vista pre-installed as far as I could tell.
Posted by Ron bellomo | February 5, 2007 8:17 AM
I just bought a new Compaq PC (Celeron 3.3GHz / 120GB HD) for $250 that came with Vista Basic preinstalled.
First thing I did was install XP SP2, and now its performance is acceptable.
Vista-capable machine with XP is a winning combination, if you must have Windows.
Posted by Art | February 5, 2007 11:36 AM
Ignoring the other "random sampling" issues, isn't it more likely that "enthusiasts" will buy (or already have bought) theirs on the Web? If I get it, that's where I'm going. How many enthusiasts shop at big box retailers?
Posted by icewiz | February 5, 2007 11:50 AM
I went to CompUSA and ended up buying a MAC with Paralells and XP. I probably won't use the Windows side of it.
Posted by Jimzim | February 5, 2007 12:20 PM
Well, I'd have to say that Joe's article really didn't have much data to go on. This is a poor showing, at best. Joe should have found out more information or at least gather more over a longer period of time. I'd say that (without any knowledge of the current state of Vi$ta sales) Vista sales are not going to meet expectations, nor are they going to in the near future. I'd expect those sales to increase later on closer to Summer, only due to the fact that people are still getting over the Christmas/end year holiday spending. Once Microshaft starts pumping the advertising, those who know little about computers may start buying Vista basic. Enthusiasts will probably start buying Vista Home Premium or Vista Business. Ultimate seems to be unneeded and too price prohibitive (and I'm an enthusiast). Enthusiasts (which I consider to be Gamers) will only want what it takes to run their performance hardware (where Basic will not be adequate). Only those, who make a living with their computer, may bother to shell out the large cash amount for Ultimate.
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I don't know where he got the average household income of $75,000, but seems way too high.
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Linux lovers grilling Joe would probably do better to just spend more time working on their systems and customizing them to the nth degree.
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XP lovers (I guess I'm one as well), would do better by not bothering to read more Vista tripe.
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If anything, I think the lagging Vista sales will help vendors in this channel realize the techno-illiterate population is shrinking
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People just are not going to be bullied into buying a new OS for the pretty interface. If it was the case, I'd think that more users would be using the hot looking 3d interfaces in Linux. They are not.
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Posted by Lawrence Knowlton | February 5, 2007 7:11 PM
I should clarify the linux 3d interfaces statement. Linux is not being foisted upon anyone and has awesome 3d interfaces. Many still are not using Linux and its free.(No, I'm not bashing Linux) So, why does M$ think that the general public is going to want to spend money on a new computer with an unproven OS that costs quite a bit, just to have a new 3d interface? Many items on the list of reasons to buy Vista can be brought into XP, for a lot less (apart from Direct X 10).
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You know what? I'd say the only way Vista will be a success is if they sell systems with both XP and Vista installed. People would be able to dabble in Vista at their leisure, but be able to switch back to XP to get things done with what they know works.
Posted by Lawrence Knowlton | February 5, 2007 7:29 PM
Knocking Joe for walking into a computer store and reporting his observations seems a rather juvenile way to debase his message. i.e. that Vista sales don't appear to be taking off.
I guess such people's memory is selective or they're too young to remember the lines of people waiting to purchase Win95 at full retail on launch. At the time, you could drive past any random computer store and see people leaving the store with copies of Win95. Since I'm not a MS shill or fanboi and I do remember seeing these lines, news of walking into a computer store and not seeing Vista fly off the shelves like Win95 is news indeed.
Vista gives every appearance of being a market dud. Among the circle of WinOS users I support, no one is interested in upgrading to Vista. Once it's pointed out to them what the licensing terms are and what the impact of DRM being threaded throughout Vista is, none of them want anything to do with Vista.
The eye candy is 'nice', yet not one of them really believes Vista will actually be more secure given all the broken promises MS has made over the years regarding security.
Eye candy and HDTV are not compelling reasons to put up with bad licensing terms and Digital Restrictions Management. For the first, WinXP is sufficient eye candy. For the second, most of the people I know are only interested in playing their HDTV content on the biggest screens they can afford using dedicated BD/HD-DVD players.
Nah, Vista isn't worth it and the buying public knows it. As a buyer, the real question is how much pain are you willing to put up with to be able to claim having the "latest and greatest". For many people, said pain includes buying new hardware to replace hardware Vista won't play with, broken applications and having to wait for application vendors to make their software Vista compatible.
Bluntly, most people couldn't care less.
Joe's article is one observation point showing this to be true. Deal with it.
Posted by No Tellin | February 9, 2007 1:55 PM