Microsoft CEO dampens Vista sales forecast
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(InfoWorld) - Microsoft chief executive officer Steve Ballmer believes that sales forecasts for itsÂ new Vista operating systemÂ may be "overly aggressive." In a conference call Thursday with financial analysts Ballmer said lower selling prices, limited new corporate sales, and software piracy may combine to temper Vista sales forecasts. "I'm really excited about how enthusiastic everybody is about Vista," he said. "But people have to understand that some of the revenue forecasts I've seen out there for Windows Vista in fiscal year 2008 are overly aggressive." Microsoft's 2008 fiscal year begins this July 1. Ballmer did not provide specific sales numbers. Sales of Microsoft's Windows operating systems are driven by the growth in sales of personal computers (PCs), Ballmer explained. But PC sales growth tends to come more from the consumer market these days than the business market. Also, while Ballmer expects Vista to see greater sales growth in emerging markets such as in China, India, and Brazil, that growth will be on a smaller base than in developed countries. Also, those emerging markets are alsoÂ high-piracy markets. Even though Microsoft has added features to Vista to thwart piracy, it is still a problem in some countries, he said. And while Microsoft sold a lot of Vista upgrades to corporate customers, they have already been accounted for in previously signed contracts, so forecasts of additional corporate sales "may be a little more bullish" than is warranted, he said. Vista is the first totally new desktop operating system from Microsoft since the introduction of Windows XP in 2001. Vista has been much-delayed in coming to market as the company tried to avoid releasing a product with defects and security flaws that plagued previous Windows versions. Although Ballmer reported a strong early surge in Vista sales, which began for corporate customers in November 2006 and for consumers in late January, the surge may be limited to what's left of fiscal 2007 and "will not recur in fiscal year 2008."
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In Microsoft&#39;s latest SEC filing again, Redmond warns that next year won&#39;t see the handsome growth in PC sales that it has seen over the past twelve months.
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Microsoft Corp.  will most likely ship its upcoming Windows Vista operating system on time and meet its deadline for both corporate and retail consumers, a Wall Street analyst said on Wednesday.
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Critics chide the software giant for missing its self-imposed deadline to provide promised extras for the most expensive version of Vista.
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Microsoft Corp.  Chief Executive Steve Ballmer said on Thursday analysts' forecasts for revenue from Windows Vista in fiscal 2008 were "overly aggressive," sending shares down 1 percent.
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Microsoft Corp. Chief Executive Steve Ballmer said the Windows Vista operating system is still on track for early January shipment.
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After years of delays and billions in development and marketing efforts, it would seem that Microsoft Corp. would want anyone who possibly can to buy its new Windows Vista operating system. Yet Microsoft is making it hard for Mac owners and other potentially influential customers to adopt the software.
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(InfoWorld) - MicrosoftÂ will give analysts in New York a strategic update on the company's business Thursday, but they aren't expecting a repeat of the surprise dished up last April. "We are expecting a non-event," wrote Citigroup analyst Brent Thill in a research note released Wednesday. Since analysts' briefing with Microsoft CEO Steve Ballmer and CFO Chris Liddell is only scheduled for an hour, "we expect it to be nothing more than a cheerleading session around Vista/Office 2007, and an update on the online and entertainment initiatives," he wrote. Last year during its April 2006 earnings call, Microsoft surprised Wall Street analysts by lowering its earning forecasts for fiscal 2007 because it expected to spend US$2 billion more on operating expenses than previously expected. The company cited marketing and other costs associated with promoting the launch of Windows Vista and Office 2007 -- which were released to retail on Jan. 30 -- as one of the reasons for increased spending. Still, analysts and investors were hardly pleased with the news, and it sent Microsoft's stock plunging. There should be no such shockers on Thursday, according to a research note by Israel Hernandez, a Lehman Brothers Inc. analyst. In fact, Hernandez wrote that he expects the meeting is intended to "pre-empt any surprises" in Microsoft's financial guidance for fiscal 2008, which begins in July. Still, analysts do have their concerns about some information Microsoft may provide at Thursday's meeting. According to Hernandez, some analysts think that Vista retail sales have been slower than expected since its Jan. 30 launch, and that Microsoft "may tone down expectations" for OS sales in fiscal 2008. However, since the product was only recently released, "it is very unlikely that Microsoft will have anything negative to say about the launch," he wrote. Another risk heading into Thursday's meeting is that Microsoft may announce that it's going to increase spending in its online business, which could drive earnings down and make the stock less attractive for investors, according to a research note by Adam Holt, a JPMorgan Chase & Co. analyst. However, Holt wrote that even if this happens, Microsoft can absorb those costs in other areas of the business -- such as reducing spending in its sales and marketing and research and development segments -- so it does not affect the company's earnings. "Even with a 20 percent to 30 percent increase in spending on new initiatives on FY08 margins could still expand substantially," he wrote.
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Microsoft has dismissed reports that its much-heralded new Windows Vista platform for small businesses and consumers would be further delayed.
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Microsoft chair Bill Gates has a tough job ahead of him at the Consumer Electronics Show in Las Vegas next week.
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The software giant's CFO says a target as big as SAP is less likely, but some big buys could be in Microsoft's future.
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In a story for the Associated Press this afternoon, one of the directors of Microsoft's Windows Client Product Planning team is quoted as saying that a Black Hat security conference demonstration last August scared Microsoft to the point where the company seriously considered removing virtualization capability from Vista entirely.
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Won't leap until SP1 arrives If it's not good enough for Intel, is it good enough for you? We're talking Microsoft's Windows Vista, which the chip giant's CEO, Paul Otellini, this week indicated has not won the backing of his technology experts.â¦
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As expected, the PC industry is ready with new Vista computers after years of delays. But the immediate impact on the PC market could be muted.
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Don't believe the spreadsheets Steve Ballmer has played down the hype surounding Vista sales saying some analysts have taken an overly optimistic view.â¦
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Microsoft COO Kevin Turner this week echoed comments earlier this year from CEO Steve Ballmer that Windows Vista won't be the last major OS update to come from the company.
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Any delay shouldn't affect adoption of Windows Vista by enterprises, analysts say.