Will Windows 10 Help Sell Microsoft Products?
On July 29, Microsoft (NASDAQ: MSFT) will roll out Windows 10 in full force. Interestingly, Windows 7 and 8 users will have a full year from the release date to upgrade for free. After that time, users will need to pay for it.
The new Windows 10 operating system attempts to win over traditional personal computer (PC) enthusiasts, according to PC World. The new Windows 10 operating system will make a number of the annoying features of Windows 8 disappear, such as hidden menus and forced flipping between the various interfaces. It will also bring back the much beloved start menu.
However, as a business Microsoft still needs to sell things. Windows Store apps will be highly integrated into the new operating system. Moreover, Windows 10 design represents Microsoft’s attempt to cater to a society moving towards the Internet of Things. The apps can work on a Windows-based smartphone, all the way up to the largest desktop computer.
Microsoft’s fiscal third-quarter 2015 results in April revealed an increasing technological landscape marked by the cloud, mobile computing and subscription-based software. Microsoft saw its Office 365 Consumer subscriber base increase 35% on a sequential basis. The company also saw a 30% increase in Xbox Live usage, and a 12% increase in Surface tablet revenue. Moreover, Microsoft saw its overall cloud revenue increase a whopping 106% in the most recent quarter.
While some Windows 10 users will find the subtle sales tactic annoying, it most likely will aid Microsoft in adapting to a post-PC world where computers can take the form of smartphones, laptops, tablets and even tables and picture frames. Investors should look for more of Microsoft’s revenue to stem from tablets, mobile phones, software subscriptions and cloud services.
Thomson/First Call has the analyst’s mean target price for Microsoft pegged at $50.13 per share, representing a possible 7% increase from its current stock price.