Why Windows 9 Is Likely to Be More Successful Than Windows 8

Windows 8.1 is being touted as being considerably better than both Windows 8 and the highly popular Windows 7. This shows that Microsoft has learned some lessons from the failure of Windows 8 and integrated them into the new product. The firm is likely to build further on this success when building Windows 9. The exit of Windows XP is also likely to improve the adoption rate of Windows 9.

Apr 1, 2014 at 8:00PM

Microsoft (NASDAQ:MSFT) intends to release Windows 9 in April 2015, about one year from now, perhaps to appease the masses that have revolted against Windows 8. For all its failings, Windows 8 is perhaps the most maligned Windows OS in recent history. It has been labeled an unmitigated disaster both from an end-user viewpoint and from Microsoft's perspective in terms of adoption rates.

But according to a recent NetMarketShare study, Windows 8 has a 6.38% market share, almost double the market share for Apple's (NASDAQ:AAPL) Mac OSX 10.9 with 3.48%, although the latter has only been around for just six months. Windows 7 has the lion's share of the market with 47.31%.

Windows 8 adoption rate not as bad as feared
There is no denying that Microsoft bet the farm by developing an OS targeted at both touchscreen devices and the traditional desktop. The result? Windows 8 is not perfectly suited for either platform, and desktop users in particular find it needlessly difficult to use.

Microsoft recently released data that showed that it had sold over 200 million Windows 8 licenses. Windows 8 is now about 19 months old since its release in August 2012. By the time Windows 7 had been in the market that long, Microsoft had managed to sell 240 million licenses for the OS. But let's not forget that PC sales have been steadily declining, with shipments falling a jaw-dropping 10.3% last year. Most Windows OS purchases are tied to new PC purchases.

During the period that Microsoft sold 240 million Windows 7 licenses, 350 million PCs were shipped worldwide. That works out to about 68 licenses for every 100 PCs sold. In comparison, 314 million PCs were sold during the period that Microsoft sold 200 million Windows 8 licenses. That works out to 63 licenses for every 100 PCs sold. While that might not be on an equal footing with Windows 7, it's much better than the 55 licenses per 100 PCs for Windows XP, or 37 PCs for every 100 PCs sold that Windows Vista recorded, in a similar time span.

Exit of Windows XP creates room for Windows 9
Microsoft plans to withdraw support for Windows XP in April this year. A study done by TechProearly this year showed that 37% of Windows XP users plan to continue using the OS even after Microsoft withdraws its support.

Source: TechProearly

As we have seen, the adoption rate of Windows 8 has not been as dismal as many have been led to believe. Windows 8.1, an improvement on Windows 8, is already being touted as being significantly better than the highly popular Windows 7. It's said to be faster, more stable, and sports some useful extra features such as the improved Task Manager, Storage Spaces and Windows Explorer. Additionally, users can choose to use it like Windows 7, or use it as a touchscreen OS.

Just five months after its release, Windows 8.1 has garnered quite a following, and now commands a 4.3% share of the market. But the snowball effect that made Windows 8 so unpopular, and its association with it, has probably discouraged many potential users from trying it out.

Microsoft is likely to pick some useful lessons from both Windows 8 and 8.1, and use them to offer a better product when it finally releases Windows 9. For the 38% Windows XP users who plan to upgrade to Windows 7, the availability of a newer version of Windows in the form of Windows 9, without the complexities of Windows 8, will quite likely lure them to give it a try.

Microsoft unlikely to give Windows for free
Unlike Microsoft which has been having a slog trying to get its Windows users to upgrade to newer Windows versions, Apple has no such difficulty. As of January this year, 80% of eligible Apple devices had upgraded to iOS 7, just four months after its release. Cost is probably a major limiting factor since Apple charges just $30 for users to move a tier higher, compared to Microsoft's $100 or more. Apple even offers Mac OS, Mac OS X 10.9, aka Mavericks, free.

Despite the difficulty Microsoft has been experiencing migrating its users from older Windows platforms, it's highly unlikely that it will go the Apple route and offer free Windows upgrades in the future. The Windows XP study revealed 37% of Windows XP users do not intend to upgrade. For this group, only 21% cited cost as the reason they intend to stay put. For the other 79%, lowering the cost of newer Windows OSs, or even giving them away for free might not be enough reason for them to move.

Source: TechProearly

Windows 8.1 is already being hailed as significantly better than its immediate predecessors, which proves that Microsoft has integrated the lessons it has learnt from the Windows 8 failure when building the product. It's only logical to expect Windows 9 to be even better than that.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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