Windows 7 Turns Savior, Gives Microsoft Record Revenues Page: 1

Windows Vista was turning out to be a major failure and users the world over were venting out their frustrations. But the launch of Windows 7 has turned around the company’s fortunes; it has raked in record revenues for the OS giant.

Microsoft did lot of firsts with Windows 7. Unlike its predecessors, Windows 7 was first made available through a worldwide public beta. This allowed users to download the entire OS for free and use it. The feedback generated gave Microsoft great insights into the changes required and the new features it should build into the OS. It also whetted users’ appetites and got them excited about the final version.

Another first with Windows 7 was Microsoft’s move to offer it free to selected users worldwide. These users were invited to act as party hosts for the official launch of Windows 7 in October last year. In return for hosting a Windows 7 launch party at their home or office, thousands of users got free signature editions of Windows 7 Ultimate along with a pack of other goodies. This overture from Microsoft did wonders for the acceptance that Windows 7 received.

Both gambles have reaped handsome dividends and Windows 7 has turned out to be the biggest ever commercial success for Microsoft. Amidst a swirl of publicity stunts from Apple, Windows 7 emerged as a knight in shining armor to revive Microsoft from its slump. Since its launch just over three months back, Microsoft has sold 60 million licenses for Windows 7. This makes it the hottest selling OS of all times, and not just from the Microsoft stable.

With such strong sales figures, 4Q2009 has turned out to be the best in Microsoft’s history and the company has reported net revenues of US $19.02B. This is a 14 percent increase YOY. The operating income, net income, and diluted earnings per share have also recorded major jumps, rising to US $8.51B, US $6.6B, and US $0.74 per share respectively. The figures indicate YOY increases of 43 percent, 60 percent and 57 percent respectively. These revenues include the US $1.7B that is in the pipeline from Windows 7 preorders.

As Windows 7 continues to grow strongly, Microsoft seems to be set for a record year of growth. And with rumors of Windows 8 already in the pipeline and set for a 2011 launch, the future seems rosy for the world’s biggest software company.

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