Microsoft believes the latest version of its Windows operating system is
off to a great start, but it's going to take more than that to prove
the revamped software will win over enough people to revive the slumping
personal computer market.
About 40 million licenses to Windows 8 were
sold in its first month on the market, according to figures that
Microsoft released in conjunction with the company's annual shareholder
meeting held near its Redmond, Wash., headquarters.
While that
number may look impressive, it's difficult to know what it means without
more insights into how many Windows 8 devices have been sold in stores,
said technology industry analyst Patrick Moorhead of Moor Insights
& Strategy. That's because PC manufacturers pay for most Windows 8
machines, leaving it unclear how many have been purchased by consumers,
companies and government agencies.
Microsoft didn't provide
further details beyond saying that Windows 8 is being embraced by a list
of companies that include Johnson & Johnson, British Telecom and
Bank of America Corp.
The initial reception to Windows 8 appears
to be "good, but not great," Moorhead said. "Is this going to be enough
to turn around the PC market? No."
Another analyst, Rick Sherlund
of Nomura Securities, said he thinks it's going to take longer than he
initially expected for Windows 8 to make a significant difference in a
computing market that is moving away from desktop and laptop PCs and
tilting toward smartphones and tablet computers.
Microsoft built
Windows 8 to enable people to control their PCs by touching on the
display screen, just like mobile devices. A similar operating system
called Windows RT is running on a tablet called Surface that Microsoft
created to compete against Apple Inc.'s popular iPad and similar devices
designed by Google Inc. and Amazon.com Inc.
Sherlund, though,
said other manufacturers aren't introducing Windows 8 devices that
highlight the software's touch-control features as quickly as he
expected. What's more, Nomura Securities projects sales of traditional
PCs in the fourth quarter to decline by 7 percent from the same time
last year. Another research firm, HIS iSuppli, already has predicted
that this year will mark the first time annual sales of PCs will have
fallen from the previous year since 2001.
In a research note
issued Wednesday, Sherlund underscored his more sedate outlook by
lowering his financial forecast for Microsoft. The revision trimmed his
previous revenue estimate for Microsoft's fiscal year ending in June by 3
percent, or $2.3 billion.
Microsoft's stock price gained 28 cents
Wednesday to close at $27.36, leaving them slightly below where they
stood before Windows 8's Oct. 26 release.