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PC To Mac: How You Like Me Now?

Despite Apple's best marketing efforts, Microsoft's new Windows 7 operating system is being well received, according early reports. At retail, the software giant sold more than triple the number of units of Windows 7 in the first few days on the market in late October than it had the previous Vista version, according to research firm NPD Group.

"Microsoft's program of early low-cost pre-sales, high visibility marketing, and aggressive deals helped make the Windows 7 software launch successful," said Stephen Baker, VP of industry analysis at NPD. "In a slow environment for packaged software Windows 7 brought a large number of customers into the software aisles."

At a news briefing in Tokyo, Microsoft head Steven Ballmer said sales of its Windows 7 were "fantastic," exceeding revenue from any of its previous operating software releases in the first 10 days. A day after Windows 7 was released on Oct. 22, Microsoft said it sold more copies of Windows last quarter than in any previous period.

"The predictions of pent-up demand for Windows 7 appear to have been borne out," remarked InternetNews.com. Yet, "Those figures are actually down somewhat, percentage-wise, when compared to the Vista launch in early 2007 ... PC sales growth during the week of the Vista launch jumped 68 percent over the prior year's sales and 170 percent over the week preceding the launch."

"In order to counter its declining revenue trend throughout 2009, Microsoft has been pulling out all stops to promote Windows 7," noted eWeek. "In addition to online and traditional advertising, Redmond has been pushing discounts for the operating system, frequently in conjunction with its PC manufacturing partners."

Microsoft is "more bullish" on the personal-computer market than it was three months ago and expects the recovery in consumer sales to continue, Bill Koefoed, a general manager at the company, said last month. Corporate demand is sluggish and won't rebound this quarter as some analysts expect, he said. PC sales rose 2.3 percent in the third quarter, according to IDC, resuming growth a quarter earlier than the research firm had projected.

Absent from the Windows 7 discussion has been any mention of Apple's attempts to capitalize on its launch with a barrage of Apple-endorsing advertising.

Read the whole story at NPD Group et al. »

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