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Dell worried as Windows 8 crawls to 3% market share

Dell Inspiron

By Stewart Mitchell

Posted on 2 Apr 2013 at 10:29

Windows 8 has reached 3.17% market share for desktop operating systems since Microsoft launched the new OS, according to figures from Net Applications.

Windows 8 is now fourth in the pecking order, but the slow progress in the six months since launch is seen as a worrying sign for the PC industry.

Windows 8 is still behind the much maligned and ageing Vista, which fell to 4.99%, and well behind the even older Windows XP (39%) as well as Windows 7 (45%).

Although Windows 8 has already overtaken Apple's OSes, its slow uptake is seen as a concern to the PC industry as it struggles against tablets built for mobile operating systems such as Android and iOS.

Dell, currently in negotiations for a buyout, cited the slow growth of Windows 8 as one reason shareholders should consider a proposed buyout from founder Michael Dell and a consortium of companies, including a $2bn investment from Microsoft.

The plans are still under negotiation, with rival bidders also circling, but a filing with the financial regulator in the US - first spotted by Forbes - highlights concerns over the health of the Windows-based PC industry.

Dell painted a gloomy picture, with "projections for decreased revenue relating to the introduction of the Windows 8 operating system, an unexpected slowdown in Windows 7 upgrades and the growth of tablets and smartphones as alternatives to Dell's core inventory of desktop and laptop PCs".

The company also noted "the increasing usage of alternative PC operating systems to Microsoft Windows, which is incorporated into substantially all of the company’s current PC offerings".

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User comments

Overtaken Apple?

> Although Windows 8 has already
> overtaken Apple's OSes

Individually, yes. But Apple's OSes combined still have a higher market share than Windows 8.

By BrownieBoy6 on 2 Apr 2013

@BrownieBoy6

And all versions of Windows have a higher market share than OS X, what is your point?

By big_D on 2 Apr 2013

@big_D

That the story, as written, is potentially misleading.

When I read the words "overtaken Apple's OSes", I assumed that Windows 8 had overtaken all of them combined. Until I went and checked the figures myself.

By BrownieBoy6 on 2 Apr 2013

We've said it before, we'll say it again

If you want us to install a shiny new OS on our desktop machines, give us a desktop OS, not something designed to flog smartphones.

By ChrisH on 2 Apr 2013

The Arrogance of Microsoft

Microsoft insisted that the whole OS would be touch driven. That is not what corporate and many personal users want. By simply recognising that fact and incorporating the ability to use a Start Button and traditional menus, legacy interfaces and colour schemes etc, in the product rather than forcing people to find workarounds or third party aplications it would, at a stroke, increase its market penetration and prove that for once it listened to its customers in the real world.

By finian on 4 Apr 2013

@BrownieBoy6

Why would a computer manufacturer worry what people had on their Smartphones?

The figures they'll be using in this story will be tied to Apple PCs (iMacs & Macbooks).

It's pointless saying that Apple's iOS6 has a larger share when it's all on iPhones!

And if you really wanted comparison why not bring in Android? It's hold on Smartphones is 70/30 over Apple's systems?

So that mean Android's market share is larger than W8! Again something Dell don't care about!

By scooter91170 on 4 Apr 2013

It's the economy. Stupid!

As Bill Clinton remarked, 'the economy' has a noted effect on, well...in this case, the economy.

People in most of the world aren't buying new cars, or fridges, or washing machines. Is this down to the 'failure' of Windows 8 too?

Most people don't feel confident to spend or borrow big chunks of cash to buy these goods, including PCs at the moment.
The reason is pretty simple. Yes, its 'the economy'


Various markets are bucking this trend. If you want to flog posh cars, now's the time: the rich will always be with us, and spending. Mobile 'phones are also doing well, because unlike with PCs their cost is usually spread over 2 years and 'hidden' in the price of the Call Plan.

The 'demise' of the new PC market has less to do with Windows 8 and more to do with external factors than many are crediting. Maybe Dell, Acer et al need to look at devising a more compelling offer, rather than blaming their woes on MS.....

By wittgenfrog on 4 Apr 2013

Want Market Share? - Offer Win7 as a cheap upgrade

I suspect if Microsoft had offered a very cheap upgrade to a full Win7 licence, there would have been a very large number of takers.
But obviously this is not what they are trying to do - they want to gain market share of their apparently "unified" wonderful new Phone & PC OS - Win8.
Good luck with that one MS.
Maybe 'Win9' will turn out good. I'm not sure they'll call it that though as it does sound a bit too close to Win95/98SE for the marketing types.

By Lascar2 on 4 Apr 2013

@finian

I'd have to agree, its a poor decision indeed to clip out the Start Menu et al.

The Code was already there in the back end as it was built on the Windows 7 Core.

Switching it back on as an option, and allowing us to disable Metro elements in a preferences panel would harm none and benefit all.

Moving more Vista and 7 users onto a version of Windows 8 SR1 with the above features enabled would ease Microsoft toward their own Goal of having all Windows User's better positioned for them to offer the inevitable subscription OS model to match the Office Subscriptions.

Its an ideal time tor them to make the above U-turn just as XP support is ending too, otherwise people in Enterprise are going to jump from XP to Windows 7.

It would better allow Microsoft to ditch legacy OS support and concentrate on the future, whilst still supporting the complex and tiered way that the installed userbase work within the Windows environment.

By Gindylow on 4 Apr 2013

Arrogant and Stupid

Remember with MS it's not just the price of the OS, you have to factor in the new scanner, printer, and a raft of new Programs (the 64-bit debacle), just to do what you already did.

MS should have made W8 installs detect if it was on a touch device and use Metro as default, but if it detected a keyboard and mouse it would install the standard Desktop, with the Metro as an optional overlay, if your device was capable, or indeed if that's what the owner wanted. Too high-tech for MS obviously!

But no, they ram their half-baked ideas down everyone's throats with no 'opt-out' choice, and wonder why they are losing market share. The only market share they seem to have is XP and W7, so is making them redundant good business practice?

As a result of the Mobile market, laptops and PC's are becoming dinosaurs. MS has already lost the race against iOS and Android, and still has no idea what the market wants, or in which direction its heading. Remember when MS said the Internet was just a toy idea? Then 2 years later they threw billions into a browser-war with Netscape? Bullying after the boat has long sailed away. And it's happening again with mobile devices. They didn't see them as a threat, now they are way behind and crapping their pants.

If MS had simply produced tools to sync data between Google, iOS and itself, half the battle would have been won simply by being the de-facto Document handler - people care a lot more about their DATA, than what OS or machine-type they're looking at, and Office has a long standing in data-world. Just providing simple Import/Export is no solution and just makes them look greedy and lazy.

So now they must buy Dell just to sell some PC's, like they bought into Nokia to sell mobiles with W8 on.

Sound business practices?
Clever high-tech solutions?
Look after you customers and give them what they want? Stop it, I'm laughing too much!

By Wilbert3 on 4 Apr 2013

Dell's Stupid.

I've spent the last couple of weeks trying to buy a new laptop from Dell. A nice new Inspiron 15" with 7730 Graphics for my daughter to use. Problem is it comes with Windows 8. That's a deal breaker for me. Want it with 7.
Not buying it, formatting it, and then paying Microsoft for a second copy of windows, not an option. You cant even buy it and 'Downgrade' it ( that's a joke ! ) to windows 7.
Dell better wake up because they're not getting my money until they give me what I want.

By Sgt_Bilko1 on 4 Apr 2013

Dell and Windows 7

Sgt Bilko
Try accessing the Dell small business site, I'd expect them still to have Windows 7 Machines. I did this a few months back and armed with the regularly advertised discount codes identified a suitable machine (Vostro range) for my needs at an acceptable price.
Found I couldn't see it through a personal login which I already had and couldn't make the criteria for a business login. I contacted them through the online chat and when I was then directed to to the "public" site I responded to the message "You are telling me you won't sell me a machine from your business range".

I got a phone call back less than 10 minutes later and bought the machine over the phone.

Windows 8 works well but when in a hurry it's a pain to have to hunt for things you feel should be easily available. Overall Windows 7 is still the best.

By jbm1997 on 5 Apr 2013

Arrogant and Stupid

Remember with MS it's not just the price of the OS, you have to factor in the new scanner, printer, and a raft of new Programs (the 64-bit debacle), just to do what you already did.

MS should have made W8 installs detect if it was on a touch device and use Metro as default, but if it detected a keyboard and mouse it would install the standard Desktop, with the Metro as an optional overlay, if your device was capable, or indeed if that's what the owner wanted. Too high-tech for MS obviously!

But no, they ram their half-baked ideas down everyone's throats with no 'opt-out' choice, and wonder why they are losing market share. The only market share they seem to have is XP and W7, so is making them redundant good business practice?

As a result of the Mobile market, laptops and PC's are becoming dinosaurs. MS has already lost the race against iOS and Android, and still has no idea what the market wants, or in which direction its heading. Remember when MS said the Internet was just a toy idea? Then 2 years later they threw billions into a browser-war with Netscape? Bullying after the boat has long sailed away. And it's happening again with mobile devices. They didn't see them as a threat, now they are way behind and crapping their pants.

If MS had simply produced tools to sync data between Google, iOS and itself, half the battle would have been won simply by being the de-facto Document handler - people care a lot more about their DATA, than what OS or machine-type they're looking at, and Office has a long standing in data-world. Just providing simple Import/Export is no solution and just makes them look greedy and lazy.

So now they must buy Dell just to sell some PC's, like they bought into Nokia to sell mobiles with W8 on.

Sound business practices?
Clever high-tech solutions?
Look after you customers and give them what they want? Stop it, I'm laughing too much!

By Wilbert3 on 6 Apr 2013

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