Win 7: The Last Major Windows Release?
Written by Tim Bajarin Monday, 02 November 2009 21:17 Last Updated on Monday, 02 November 2009 21:26

Believe it or not, I have been to the launch of every version of Microsoft Windows. Some have been spectacular, like the Windows 95 launch in Seattle that featured Jay Leno, and the launch of the first Windows in New York City, which offered something of gala-like atmosphere. The New York launch of Windows XP, on the other hand, occurred just after the September 11th attacks, and was, not surprisingly, comparatively subdued.
I wasn't sure what to expect when I flew to New York City two weeks ago to attend the Windows 7 launch. The event, it turns out, fell somewhere in the middle. It wasn't as flashy as the Leno event, but it was a lot more upbeat than the Windows XP launch. My colleagues at PCMag covered the event extensively, but I wanted to weigh on something that the media missed in the shuffle.
As you're likely aware, two major surprise factors have impacted the PC industry in the past two years. The first was introduction of the netbook in the fall of 2007. This new space has been a boon for the industry in terms of sales figures, but the devices' pricing has had a devastating effect on PC vendors. While netbooks aren't designed to meet all of the needs of a standard laptop, they're great for a number of users, and as such, have sold extremely well.
As a result, however, netbooks are changing consumer expectations about what a standard laptop should cost. The industry has responded by dropping the price of notebooks down by as much as 40 percent over the last 18 months. That means that vendors have to increase PC sales by 25-35 percent just to maintain their revenue levels from two years ago. Margins have also been reduced, and bottom lines and overall profitability have suffered as a result.
The second major factor that has impacted the industry is the recession. In October 2008, consumer began buying less, and the purchase of a new PC became a luxury. The worldwide demand for PCs shrunk by as much as 13 percent. Business users and consumers hunkered down and tried to squeeze as much as they could out of their current systems. Twenty-five million fewer PCs were sold in 2008 than in 2007.
With these factors in place, Windows 7 couldn't have arrived at a better time. Windows launches have always been important to both Microsoft and PC vendors, but this latest version of the OS offers the potential to increase the wavering demand for new systems and revitalize the declining PC market. As one executive from a major PC manufacturer put it, this time "Windows really matters."
At present, most market researchers foresee a 12 percent growth in the PC market, thanks to Windows 7. And while consumers will no doubt be the first to adopt the new operating system, Gartner Research predicts that 15 percent of enterprise users will be running Windows 7 next year. Considering that enterprise demand for PCs has declined 17 percent since Oct of 2008, this jump seems to indicate that business are loosening their purse strings.
So, Windows 7 does, in fact, matter. But for how long?
Read the rest of the article @ PC Mag

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