Why 100 Million Windows 8 Licenses Isn't Impressive
"By Evan Niu, CFA
"May 9, 2013 | Comments (0)
"Software giant Microsoft (NASDAQ: MSFT ) made headlines earlier this week when it boasted 100 million license sales of Windows 8 since the controversial new platform launched six months ago. Microsoft also outlined its plan to release a public preview of Windows 8.1, codenamed "Blue," which may address some of the platform's weaknesses.
"That's up from the 60 million figure that Microsoft touted in January. That's also roughly the same pace that the flagship operating system's predecessor saw when Windows 7 was unleashed upon the world back in 2009.
"Keep in mind that these figures that Microsoft shares are based on sell-in to its distribution channel, which includes sales to retailers and OEMs. Some of these licenses are sold directly to end users, including upgrades, but most people generally don't buy copies of Windows directly.
"When it comes to actual sell-through and consumer usage, Microsoft is likely doing much worse than its statistics would suggest. Moor Insights & Strategy principal analyst Patrick Moorhead estimates that 41% of those Windows 8 licenses aren't in play right now."
I and others have pointed this out before, but it's worthwhile pointing out that it's not just us who know it.