Could This Be a Boost for MSFT Stock?
Microsoft Corporation’s (NASDAQ:MSFT) stock price has climbed a decent 15.6% since the beginning of this year. With continuing adoption of Microsoft’s “Windows 10,” the dividend-paying company could become even more popular with investors.
Who said you need to wait in lines at stores to get Black Friday deals? This Black Friday, Microsoft offered 1,000 deals on digital movies, music, games, and apps on Windows 10 devices for just 10 cents each. The deals are available until Sunday, November 29, with new deals coming each day. (Source: “Great Black Friday Shopping at Microsoft: 1,000 Windows 10 Deals at Just 10 Cents, Xbox One at $299 and More,” Microsoft Corporation, November 20, 2015.)
The key takeaway is this: only those who are running Windows 10 were able to download movies, songs, games, and apps for 10 cents each. Therefore, those who are running previous versions of Windows would have to upgrade to Windows 10 if they wanted to get the deal. That’s quite a smart way to boost Windows 10’s adoption rate.
Even without the help from Black Friday deals, Windows 10 is already quite successful compared to its predecessors. By early October, Windows 10 was on 6.6% of all desktop computers accessing the Internet. Although that doesn’t sound like many, note that Windows 10’s adoption rate in two months after launch was higher compared to both “Windows 7” and “Windows 8.” Sure, it helped that Windows 10 is a free upgrade, but we should not forget that users rushed towards Windows 7 to get away from the disastrous “Windows Vista.” (Source: “Windows 10 is the Fastest-selling Version of Windows in at Least a Decade,” Business Insider, October 7, 2015.)
At this point, Windows 7 is still the leading operating system in the world. However, given the upward trend in Windows 10’s adoption rate, it is only a matter of time before Windows 10 takes the top spot. It has been forecasted that by January 2017, half of all organizations would have started to deploy Windows 10. (Source: “Windows 10 Adoption Will be Faster Than Windows 7,” ZDNet, November 23, 2015.)
Analysts are particularly optimistic about Windows 10’s adoption by businesses. “For enterprises, we expect that implementation will be significantly more rapid than that seen with Windows 7 six years ago,” said Steve Kleynhans, vice president of research at Gartner. The research firm says that a lot of businesses have plans to begin pilots for Windows 10 in the first half of 2016, and will expand adoption later in the year. (Source: “Gartner Says Migration to Windows 10 Will Be the Fastest Yet,” Gartner, November 23, 2015.)
On the consumer side, the future of Windows 10 looks quite bright as well. “In the consumer market, a free upgrade coupled with broad legacy device support and automatic over-the-air upgrades ensures that there will be tens of millions of users familiar with the operating system before the end of 2015,” said Kleyhans. The research firm predicts that by 2018, one-third of all laptop computers will be shipped with touchscreens, a feature that works nicely with Windows 10.
The Bottom Line on MSFT Stock
At the end of the day, Microsoft belongs to the business software and services industry and the Windows operating system has been the core feature of its product lineup. With Windows 10 on its way to becoming the leader among all operating systems, MSFT’s stock price could go even higher.