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Vista Ultimate May Put Millions More In Microsoft Coffers

Sunday, January 28th, 2007

Microsoft’s decision to offer higher-end editions of Windows Vista could pay off in 2007 with millions more in its pocket, a financial Windows_Vista_Ultimate_Box.jpganalyst said Friday. Although criticized by some users and pundits for their higher cost, the premium versions of Vista — particularly Ultimate ($399 for full version, $259 for upgrade) but also Home Premium ($239/$159) — could add hundreds of millions to Microsoft’s bottom line this year.

"We believe upside to our 2007 client revenue estimate could come from a higher premium mix, and a bigger contribution of Vista Ultimate to the premium mix," said David Hilal, an analyst with Friedman, Billings, Ramsey &\1 Co., in a research note to clients.

Hilal’s optimism was due to Microsoft’s revamped estimate of the Windows mix it expects to sell during the rest of fiscal 2007. In a conference call Thursday to announce second-quarter earnings, Microsoft CFO Chris Liddell revised the estimate of premium editions’ share upward to 60% of all sales from an earlier forecast of 54%. Vista Ultimate May Put Millions More In Microsoft’s Coffers - News by InformationWeek

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