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Microsoft: 300 million copies of Windows 7 sold

By | January 27, 2011, 1:08pm PST

Summary: Microsoft has sold 300 million copies of Windows 7 to date, officials said on January 27, the day the company is reporting its Q2 FY11 earnings.

Microsoft has sold 300 million copies of Windows 7 to date, officials said on January 27, the day the company is reporting its Q2 FY11 earnings.

That’s up from the 240 million figure we last heard in October 2010.

Microsoft execs also said that Windows 7 is now on 20 percent of all Internet-connected PCs.

According to a copy of Microsoft’s earnings report, which went out ahead of the close of the financial markets, Microsoft earned $19.95 billion for the quarter ended Dec. 31, 2010. Operating income, net income and diluted earnings per share for the quarter were $8.17 billion, $6.63 billion and $0.77 per share, respectively. The quarter really “Kinected” for Microsoft, as my blogging colleague Larry Dignan noted.

In November last year, Forrester Research reported that 10 percent of business PCs in North America and Europe were running Windows 7. As of November, Windows 7 was deployed on 31 percent of brand-new PCs purchased by business users surveyed by Forrester. The research firm predicted that within a year, that number will grow to 83 percent.

Update: While unit sales of Windows 7 were strong, overall Windows/Windows Live revenues were down by Windows and Windows Live revenues were down 30 percent from the year-ago quarter. But in the second quarter of Microsoft’s FY10, the Windows unit’s revenues were buoyed by deferred revenues from Microsoft’s upgrade program.

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft: 300 million copies of Windows 7 sold
dfwekrwe37-24353605197146757382959378007354 10th Nov
qhicfe,good post!
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Pheeww - Thank Goodness!
Mr. Dee 27th Jan 2011
Because I was about to get a boatload about "MS is doomed" from the Mac Users and Linux nut heads if this quarter turned out to produce lower revenue. Thanks for extra info on Windows 7 sales hitting 300 million, extra ammunition to rub in Mac Cult and Linux nutcase faces. Windows 7 should be on 600 million PC's by 2012, impressive. Look like Windows Phone 7 is the sore spot, hopefully it will pick up later in the year with the expected update and more carrier support (and please Microsoft, better marketing push, please just give it all you got).
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@Mr. Dee

It's all FUD. Windows 7 will be in the bargain bin by next month. M$ is lying.


wink
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@Cylon Centurion 0005
Eventually they have to start selling fewer than 7 copies per second, right?

At this rate, I'm a little worried. It looks like this won't be the decade that Microsoft dies.
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RE: Microsoft: 300 million copies of Windows 7 sold
Pete "athynz" Athens 28th Jan 2011
@Cylon Centurion 0005 That right, according to reliable sources that I cannot name or link to Win32 is no longer relevant... oh wait I meant Win32/64 as I just learned there was a Win64... yeah and Office sucks. This is the year of Linux! Any sort of success MS reports is all FUD and lies but any issues they don't report is even worse...

Wow so THAT's what it's like to be an ABMer....
Mike Coc that the numbers were correct ...... and we all know that Mike Cox wouldn't tell a lie to Lovie as we all know they're attached at the hip happy
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"Mac Cult and Linux nutcase faces"
CowLauncher 27th Jan 2011
That's not very nice Mr. Dee. Plus it is not very lyrical...doesn't really roll of the tongue. You should have said: "...rub in the faces of Mac Cultists and Linux Nut Jobs"

Cheers!
@CowLauncher I would prefer if you used Mac-Wackjobs and Linux Schmucks
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I wasn't going to say a word
John L. Ries 27th Jan 2011
@Mr. Dee
But it's still been 12 years or so since I've run into someone (in person) who was genuinely enthusiastic about MS products. MS still derives the vast majority of its revenue from being the default (something which hasn't changed in at least 15 years).

Revenue doesn't tell the whole story, though it's a good sign for MS that they haven't had to sell Windows 7 licenses with "downgrade rights".
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Why would they?
Cylon Centurion 27th Jan 2011
@John L. Ries

The only OS that Windows 7 could downgrade to would be Vista. The age of computers made for XP is long dead. Buying a multi-core machine with XP is money wasted.
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The popularity of the Apple stores
Richard Flude 27th Jan 2011
should have given them a cue.

A massive shift underway in IT today. An IT renaissance after the dark ages. Exciting times.
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the popularity of the Apple stores
pupkin_z 27th Jan 2011
@Richard Flude not really
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Don't hold back - Do tell
search & destroy 27th Jan 2011
But it's still been 12 years or so since I've run into someone (in person) who was genuinely enthusiastic about MS products.

Except for the paid shills M$ has that come on here to these blogs. Or don't they count? lol...

MS still derives the vast majority of its revenue from being the default (something which hasn't changed in at least 15 years).

Yup, the only OS seen in the stores, unless they happen to sell Apple, too.

Revenue doesn't tell the whole story, though it's a good sign for MS that they haven't had to sell Windows 7 licenses with "downgrade rights".

Good point. I almost forgot about that 'ringing endorsement' of Vista.

more lol...
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@John L. Ries you need to get out more happy
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@John L. Ries If people had critiqued Apple because well its revenue does not say everything people would be screaming bloody murder.

The reality is that it is all about Apple Cultists. The Linux nutjobs have left the building, and the M$FT pumpers don't care anymore because well they are tired of this discussion.

The reality is that Windows is here to stay whether you like it or not. And Linux is here to stay. I am using both Windows 7 and Linux Ubuntu 10.10 and have to say I rather like both operating systems.
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@John L. Ries
have come from people I know that are genuinely enthusiastic about Windows 7.
XBox360 and Kinect are in many of our friends and relative's homes as of December 2010, and from those I've talked to that have WP7, they really do, like it.
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Sorry Richard Fluid
John Zern 28th Jan 2011
@John Zern
I agree that telling yourself that helps you sleep at night, but that's your problem, not ours. wink
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serpentmage: Yes, but we're discussing MS now
John L. Ries Updated - 28th Jan 2011
And, as far as I can tell, Apple doesn't have a history of cooking the books to "prove" that its products are successful and doesn't need to. There are reasons why Apple has a cult following and they have to do with the genuine enthusiasm for Apple products, which their users actively seek out.

While I have no reason to suspect the revenue numbers for Windows 7 (as I did for Vista), the fact remains that Windows is dominant because it is preloaded on the vast majority of personal computers and it's all that the vast majority of the computing public are familiar with. People don't need to make any effort to get a Windows PC; rather, it takes a fair amount of effort to get a non-Apple PC that's not preloaded with Windows. It's successful because it's the default, and for no other reason. There may well be MS-cultists in real life, but I haven't come across one in person (rather than cyberspace) since the late 1990s. For the vast majority, MS products are preferred solely because they are familiar, "everybody else" uses them, and in the case of Windows, it automatically comes with your computer. In short, it's the default and that hasn't changed in a very long time.

However, I do like the current line of propaganda better than the traditional insinuation that MS' continued overwhelming dominance is necessary to preserve the culture of interoperability that has developed over the past 30 years. It's no more honest, but doesn't try to lay a guilt trip on those who choose to use software that competes with Windows and Office.

BTW: I don't think that MS or Windows is likely to disappear, but I can envision a competitive market dominated by neither MS nor any other vendor, in which the market share for Windows is between 25% and 40%. So yes, I agree that Windows is here to stay.
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is preloaded onto machines for a reason? MS isn't forcing OEM's to preload Windows, they want it to sell systems.

It's successful because it's the default, and for no other reason

If the OEM's thought they'd still sell the same amount or more with Linux installed, they would do so, and not have to purchase Windows licenses, period.

Though it may explain the success of the iPad, people only buy that over Android tablets simply because, for no other reason, that they are used to it, as it's familiar to them after owning an iPhone?
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More John Zern bullsh!t
search & destroy 28th Jan 2011
is preloaded onto machines for a reason? MS isn't forcing OEM's to preload Windows, they want it to sell systems.

Tell that to the Justice Department. Even (as feeble as it is) the oversight order is that is still in effect.

http://en.wikipedia.org/wiki/United_States_v._Microsoft

And let's not forget their rallying cry...

http://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish

And now we have this nonsense

http://www.antitrusttoday.com/2010/05/19/court-finds-microsoft%E2%80%99s-apple-defense-half-baked/

If the OEM's thought they'd still sell the same amount or more with Linux installed, they would do so, and not have to purchase Windows licenses, period.

You keep persisting in this lie. The only way that would be believed is if they offered to sell hardware with blank HDDs, and let the customer choose which OS to have loaded on it at the point of sale, which you already know they don't.

Just cut the M$ propaganda bullsh!t, @John Zern. Nobody (except your fellow shills) believes you.
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RE: Microsoft: 300 million copies of Windows 7 sold
lepoete73 Updated - 23rd Feb 2011
@John L. Ries They simplified things in Win7, they included XP in it as XP Mode (Win7 Professional/Enterprise/Ultimate) for those who really need that compatibility.

With the brilliant UI and XP Mode, you've got the best of both worlds.
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@Mr. Dee Hell, even with Monkey Boy running the show the sheer inertia of Microsoft can carry it forward for years. That being said, it's important to remember that while 300 million copies of Windows 7 is great, Microsoft is still riding on the back of it's traditional cash cows, Windows, Office, and Server & Tools. Online services continues to hemorrhage cash, and E&DD while earning $3.7 billion in revenue it generated less than $700 million in profits. After years of pouring billions into the Xbox, Kin, and WP7 development, those products need to be making a lot more money just to recoup their costs, let alone generate a net plus.
@matthew_maurice Well, the PC is here to stay, all that content you consume on your iPhone and iPad are created on Windows PC's. Don't tell me you really expect to be creating movies and photos on your iPhone next week, next month or 5 years from now.
@Mr. Dee ..i.e. MS growth is basically flat.. flat growth is nothing to get excited about... investor kinda tend to like you to grow their money for them.. investing in MS is the equivalent of stuffing you money in a mattress.. LMAO...

not to mention that that they are being saved by the entertainment devision with a 55% increase in revenue vs Windows/Windows Live that was down 29% in revenue..

this is in comparison to Apple with slightly more revenue than MS and slightly less profit but nearly 70% growth year over year..

do you see the trend here?
@doctorSpoc so unless Apple invents something else, market will be saturated with iPads and iPhones very quickly and will become as flat as Microsoft one. Do you see any more revolutionary products coming from Apple next year?
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@doctorSpoc

MS growth is "basically flat"? Ok. Let's see. Microsoft's net income was $2,977 billion in Q309, $4.006 billion in Q310 and, as of today, $6.634 billion in Q211. If that's flat...Dolly Parton is flat.

Regarding Windows/Windows Live, in Q110, that group delivered $1.477 billion in net income. This quarter they delivered $3.251 billion. I'll do the math for you. That's an increase of $1.774 billion. Since you're math challenged, I'll point out that that is a more than doubling in net income.
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OMG marksashton do you have a clue??
doctorSpoc Updated - 27th Jan 2011
@marksashton.. you don't compare one quarter to the next.. you compare the same quarters year over year... this accounts for seasonal fluctuations in buying... like Christmas.. you think it makes sense to compare the quarters before Christmas with the one that contains Christmas?? think about? no you compare the same quarter year to year then you see the trend..

MS net income was $6.66billion for q2 2010.. and 6.63 for q2 2011.. it's actually down year over year, but just slightly so.. basically flat.. get it!
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@doctorSpoc Ok, you got me. I actually understand that but was trying to make a point. Comparing the current quarter to the previous year is a bit like your example...apples and oranges...because in Q210 Microsoft launched Windows 7. A more reasonable comparison is Q110 to Q111. Net income in Q110 was $4.482 billion. Net income in Q111 was $7.16 billion. Similar story to my first example. Net income growth of $2.678 billion. I think that's about 60% growth.
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RE: Microsoft: 300 million copies of Windows 7 sold
Loverock Davidson 27th Jan 2011
More of the awesomeness coming out of Microsoft. We were told over and over that no one wanted Microsoft Windows and how it was going to be a flop. Guess this proves them wrong. Microsoft Windows 7 is by far the best operating system Microsoft has produced to date. Its reliable, stable, secure, and compatible with all of your applications. There should be no question why its the #1 operating system in the world.
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@Loverock Davidson
I agree with you 100% and I love the iPad and iPhone... MS windows and office works for me...

Linux? yawn...
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Desktop Linux just doesn't have the shine
Cylon Centurion 27th Jan 2011
@Hasam1991

Of Apple or Microsoft. It never did, only attracted hard core computer users who wanted to dabble themselves, even with companies like Canonical behind it. And that fact shows badly. No OS integration with apps, outdated design, and for years had annoying ***holes forcefeeding it to people who didn't want it.

For a consumer, it's a no go.
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@Loverock Davidson You said the same thing about Vista remember...so are you going to apologize for that stupidity?
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Why would he do that?
ye 28th Jan 2011
@Ron Burgundy: You said the same thing about Vista remember...so are you going to apologize for that stupidity?

Just because something better has come along does not mean that, at the time the statement was made, it was in error.
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@Ron Burgundy

Apologize for what? Holding an opinion contrary to your own?
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Well, champion village idiot...
SonofaSailor 22nd Feb 2011
@Ron Burgundy

Vista is the 3rd most popular o/s on the planet:
http://www.netmarketshare.com/operating-system-market-share.aspx?qprid=10

behind Win 7, and XP, of course. So, Loverock's statement wasn't so stupid after all.

And, Vista didn't have near the problems that the press and the zealot haters made it out to be.
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RE: Microsoft: 300 million copies of Windows 7 sold
Pete "athynz" Athens 28th Jan 2011
@Loverock Davidson Completely agree! I loved XP and think it is still a decent OS but Windows 7 is so much better IMHO and experience and way better than Vista.

BTW why are people flagging your comment? It's not like you said how badly Linux sucks in comparison to Windows 7... I wonder how long it will take for my comment to get flagged? LOL
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Surprising story
Richard Flude Updated - 27th Jan 2011
How did they perform?

Revenue up a pathetic 5%, operating income -4% (yes negative).

MCSEs : still no trouble in MS land;-)

..edit.. And those dunces fumbled the release:

"Microsoft finished up after a somewhat shambolic release of its quarterly results were released at around 3:45 p.m. EST, as opposed to the post close rush of headlines that is the usual. "
http://blogs.wsj.com/marketbeat/2011/01/27/microsoft-earnings-early/

THis company is priceless;-)

..edit..The big story Windows & Windows Live Division revenue down a whopping 30%, Operating income down 40% (previous year qtr).

Read the MSFT SEC filing @
http://www.sec.gov/Archives/edgar/data/789019/000119312511015947/d10q.htm
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RE: Microsoft: 300 million copies of Windows 7 sold
Hallowed are the Ori 28th Jan 2011
Don't you have a loaded gun that needs to be cleaned?
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Reporters will tell a different story
jk_10 Updated - 27th Jan 2011
Within a few minute, you will see a flood news posts that tell you: Microsoft Q2 profit down because PC sales impacted by XYZ.

The real story is: revenue up 15% and profit up 28%. They never bother to tell the truth.
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you don't do revenue comparison quarter to quarter..
doctorSpoc Updated - 27th Jan 2011
@jk_10 especially when you compare the quarter that contains Christmas to the one before it... do you have any clue at all?? that is completely useless because it doesn't account for seasonal fluctuations..

you compare the numbers year over year.. '10 q2 to '11 q2.. when you do that you see that MS growth is flat.. revenue $19bil -> $19.95bil, profit is actually negative $8.5bill -> $8.17bill

MS is not growing.. it is stagnant.. Window/Window Live down 30% from q2 '11.. their entertainment (mainly xbox 360) division is saving them... with 55% growth
@doctorSpoc learn to read my friend. I doubt you did.
@jk_10.. why don't you learn how to write?

the real story is that year over year MS revenues are very slightly up $19bil to $19.95bill... and profits are down year over year $8.5bill to $8.1bill..

Revenues are less compared to Apple.. net profits are slightly more that Apple $6.63bill to $6billion..

what you're trying to say.. i have no clue.. lol...
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see?
jk_10 Updated - 27th Jan 2011
@doctorSpoc You may ask someone if you don't understand.
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See, what...
search & destroy 27th Jan 2011
what you're trying to say.. i have no clue.. lol...

Neither did I. I guess he didn't say anything. lol...
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I'm waiting for the trolls to roll in claiming this rumor is false, and that every one has replaced their PCs/Laptops with iPads.


So much for x86/64 "dying".
@Cylon Centurion 0005

and the question is where is donnie or the linux advocate
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Don't need 'em
John L. Ries 27th Jan 2011
@mgaul
There appear to be enough MS non-fans available to dampen down the inevitable irrational exuberance without their assistance.
Important thing is Windows revenue was up 33% year over year. That should be slap-in-the-face for the Wall Street Morons(WSM). Remember what they used to say: netbook will eat Microsoft's revenue. Do they even mention netbook anymore?
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@jk_10
You number is wrong ,Its 24% year-over-year.
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End of the road for Microsoft?
jazzbythebay 27th Jan 2011
The numbers paint a completely different picture than the countless doom and gloom stories in the media. Well, 300 million copies of Windows 7 sold proves most of them wrong.
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They're not dead yet...
John L. Ries 27th Jan 2011
@jazzbythebay
...but the glory days are long gone. It would help if MS focused more on creating great software and less on market share protection, but that won't happen as long as Steve Ballmer is in charge.

MS still reminds me a lot of the Democratic Party in the southern states in the 1960s; still dominant, but almost entirely from inertia, and not nearly as dominant as they once were. We'll see how long they can keep it up.
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RE: Microsoft: 300 million copies of Windows 7 sold
dfwekrwe37-24353605197146757382959378007354 10th Nov
qhicfe,good post!

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