This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

No Rally Why Microsoft's 40 Million Windows 8 Sales Fails To Impress

Microsoft Windows 8 is officially a success. The company sold 40 million Windows 8 licenses since its launch. This beats Microsoft sales for Windows 7 by momentum, but there are already 600 million installations of Windows 7 in the PC market. With this incredible feat, Microsoft shares did not move much. Shares continue to be on a downward trajectory, falling from $31.45 in September to $27.08 at the time of writing:

Let’s break down the headline. 40 million units were sold. The price for each license was $69 for the upgrade, $99 for the OEM and $139 for the Pro Pack pre-ordered. Computers purchased after June 2012 may upgrade to Windows 8 for $14.99. Anyone running XP/7/Vista who download Windows 8 may buy the software for $39.99. Assuming 100% sales at various price range, the revenue generated from Windows 8 so far are:

From the above table, it may be seen that revenue varies widely, from between $599.6 million to as much as $5.56 billion. Microsoft has around 7.64 billion shares outstanding.  The addition to EPS, assuming a 50% margin varies widely too:


Investors are watching earnings growth Microsoft makes from Windows 8 over time. It is too early to forecast growth rates for the company, and the negative trend for PC’s needs to be offset by growth for tablets, Windows phones, and desktops running Windows 8.

Business Section: Investing Ideas

Investors have so far ignored the power of vertical integration with Microsoft. With the Department of Justice restrictions imposed finally ending, Microsoft may freely integrate Windows Phone with the PC, and then with XBOX. Even as a blip, 750,000 sales of XBOX 360 consoles during Black Friday illustrates entertainment tied with other Microsoft platforms has potential. Investors who think Microsoft Windows 8 has a strong future should look at:


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,909.95 -66.36 -0.37%
S&P 500 2,080.08 -6.16 -0.30%
NASDAQ 4,930.3740 -17.0670 -0.34%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs