Crippled Vista service pack, er, ‘Windows 7’ won’t sell to netbook buyers

“Microsoft Corp., already suffering from netbook makers using older and cheaper versions of Windows, probably won’t find a remedy with Windows 7,” Dina Bass and Ian King report for Bloomberg.

“Microsoft is planning to offer several editions of Windows 7 for netbooks, scaled-down laptops that cost less than $500. Microsoft wants consumers to opt for the more expensive versions of the software, an approach analysts and even Microsoft partner Intel Corp. say may be a hard sell,” Bass and King report. “‘That upgrade’s going to be tough for a bunch of reasons,’ Intel Chief Executive Officer Paul Otellini said at an investor conference in San Francisco last week. ‘Microsoft has to figure out: What’s their strategy?'”

MacDailyNews Take: Hook the world on crap and somehow keep them from wandering into their local Apple Store?

Bass and King report, “As Microsoft readies Windows 7, the company is planning a basic version, as well as more expensive editions that are also targeted at netbooks… Many netbook buyers won’t go for it, because they want the cheapest option possible, said John DiFucci, the JPMorgan Chase & Co. analyst who asked the question that prompted Ballmer’s comment. That means investors shouldn’t expect Microsoft to make much more money on netbook software, the New York-based analyst said in a note to clients. Microsoft hasn’t released specific prices for the different versions of Windows 7.”

Bass and King report, “‘I don’t know that there’s much room to charge more than what’s been charged currently,’ said Michael Cherry, an analyst at Directions on Microsoft in Kirkland, Washington. ‘I’m pessimistic about this.'”

Full article here.

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