Dell: Windows 7 Pricing Could Slowdown Adoption Rate

Submitted by lalit on May 18, 2009 - 3:50pm.

Dell is worried that Windows 7 adoption rate would be slower because of pricing, even though the beta OS is receiving good reviews.

“If there’s one thing that may influence adoption, make things slower or cause customers to pause, it’s that generally the ASPs (average selling price) of the operating systems are higher than they were for Vista and XP,” said Darrel Ward, director of product management, Dell business client product group. “In tough economic times, I think it’s naive to believe that you can increase your prices on average and then still see a stronger swell than if you held prices flat or even lowered them. I can tell you that the licensing tiers at retail are more expensive than they were for Vista (WHAT).”

Ward says that Windows 7 is much further along (in development) than Vista was at this stage and aside from pricing, the momentum behind Windows 7 is bigger compared to Vista. However, early adoption by schools, government agencies and businesses might be affected by the price. He said in business market, Windows 7 Professional is expected to be more expensive than Windows Vista Business.

Pricing is going to be a very important factor in adoption of Windows 7. If Microsoft is increasing the average selling price on Windows 7 based on all the positive reviews the beta OS has received they are going in the wrong direction. Most consumers expect Windows 7 to replace Vista in same price bracket and increasing price will only make them think twice before buying.
[Via CNET]