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Tuesday, November 6, 2012

Microsoft's Windows 8 'strong'

Microsoft (MSFT) launched Windows 8 with much fanfare. Estimated to be at a $1.5 billion budget, Microsoft wants consumers to look at the company in a fresh new face. Creating a new branding message against an established reputation is a challenge, but it is not impossible. Leading the fresh new marketing messages are a number of updates: the Surface tablet release, Windows Phone 8, music and movie services, software updates for the Xbox, and an upgrade to Skype.

Reinvigorating the growth of a company is possible. Starbucks (SBUX) found itself drifting, before its founder returned to bring new, original ideas that made the company what it is today. Microsoft’s rebirth is more complex. Despite a pricing strategy that may hurt initial sales for Surface RT, Microsoft built RT without partnering with hardware makers. Microsoft chose instead to use Qualcomm (QCOM), NVIDIA (NVDA), and ARM Holdings (ARMH) to supply parts for RT.

Building on its aggressive marketing strategy, Microsoft lowered developer registrations for 8 days, from $99 USD to $8, to grow its developer base. At its Build 2012 conference, Microsoft will be giving away a Nokia (NOK) Lumia 920, a Surface RT, and 100 GB of SkyDrive storage. The conference is being held in Belfast, Ireland on November 12 -16.

Windows 8 Sales Strong

Critics pointed to Windows 8 being far too different for consumers to embrace, but a 3 minute video shows how easy it is to use. Still, there is clearly a benefit in using a touch-enabled device to greater ease of use. Over the weekend, Microsoft sold 4 million upgrade copies of Windows 8. This would add between $60 and $160 million in revenue for Microsoft alone.

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