The industry analysts believe that Windows 10 revenue is likely to decline in the current year at least
According to the research firm, Gartner Inc., Microsoft Corporation’s Windows revenue is likely to see a decline of around 7.5% and fall at $13.5 billion due to harsh economic conditions, tightening IT spending, and rough foreign exchange rates.
The projection has been done even after the $431 billion organization expressed that its latest Windows 10 has had the best start among all the versions of the company’s flagship operating system, on the basis of the number of active devices being run on it.
The latest data of Gartner covers the sales of all Windows and not exclusively Windows 10’s. However, the firm’s chief forecaster, John-David Lovelock cited that the prediction of the Windows’ declining sales is on the basis of the weaker-than-expected sales of Windows 10 in 2016. However, he didn’t provide precise revenue figures.
Just earlier this month, the Redmond, Washington based firm announced that a massive 270 million devices had been running Windows 10, this made up an elevation of around 35% in comparison to the data provided by the company on January 4. Microsoft further elaborated that the performance of the latest Windows outperformed Windows 7’s –which had been the fastest-growing Windows version till now –by 145% in the similar span.
Industry analysts have reported that Windows 10 popularity and instant adoptability is due to the free downloads offered to the consumers and therefore it doesn’t add to Windows revenue.
Gartner, additionally, has also brought down its expectations for sales to corporate customers who transition to new operating system after paying for it.
Mr. Lovelock explained that companies that, last year, bought Windows 10 for testing the operating system are not likely to expand it company-wide until 2017. He added that other companies are simply postponing the adoption of the Windows 10 “until they start seeing better business conditions.”
However, he envisions that 2017 might have positive results for the sales of the new operating system but, the impending decline of PCs may negatively affect the sales growth of the Windows version.
Microsoft, however, didn’t provide specific reply to Gartner’s forecast and instead provided the rate of accessibility and acceptance of the Windows 10.
In an e-mail, the tech behemoth said that the latest version is “off to the hottest start in Windows history.” The company strengthened its statement by adding that, for the current year, the U.S. Department of Defense has promised to upgrade around 4 million devices to Windows 10. It further added that around half of company’s active enterprise consumers across the globe are running their devices on the new operating system.
However the analysts at Gartner are not softening their stance regarding the negative forecast of the Windows 10 revenue. The firm says that among many factors, “escalating political and economic challenges” are such that will hold back the sales of the operating system in the key emerging markets, particularly Latin America.
According to Mr. Lovelock, another pivotal factor of the declining revenue is that many companies are choosing to curtail their spending on the computers. The firm has projected that, in the current year, the global market for mobile phones, tablets, PCs, and other devices are likely to witness a decline of around 3.7% to $626 billion.
In the similar way, analysts from other industry are also pessimist relating to the revenue growth from Windows 10 enterprise version at least until 2017.
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