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More doubling-down on New Coke:
Source: Microsoft Can't Sell Windows 8, So It's Giving It Away
Microsoft (NASDAQ: MSFT ) is pulling a 180. After lambasting Google (NASDAQ: GOOG ) for collecting data on its users to sell ads, Microsoft is prepared to do the exact same thing. With weak sales of Windows 8, Microsoft is preparing to offer a free upgrade to Windows 8.1 for Windows 7 users. "Windows 8.1 with Bing," as the name implies, will feed users into Bing search and other Bing services as well as Microsoft's cloud-based services.
Free OS upgrades are something new to Microsoft, but not to the industry. Apple (NASDAQ: AAPL ) offered free upgrades to its newest Mac OS X last year, and Google offers free upgrades for Chromebooks and Android devices that support the update. The move is questionable for Microsoft, however, which has typically received $50 per device from OEMs to license Windows.
Nobody is upgrading?
Windows 8 is a strong departure from its predecessors, focusing more on touch devices than traditional mouse and keyboard inputs. So far, the new user interface has been a flop. Only 10.7% of PC users have Windows 8 or 8.1 installed, according to Net Applications. More telling is that fewer than half of Windows 8 users have installed the 8.1 update.
Comparatively, Windows 7 commands a 47.3% share of the market, and 12-year-old Windows XP still has 29.5% of the market. Even though Microsoft has scheduled April 8 as the final day of support for XP, about one-third of Windows users are still on the operating system. The anticipated rush to upgrade has yet to materialize, and it might never happen.
Source: Microsoft Can't Sell Windows 8, So It's Giving It Away