High channel inventory stunts Windows 10 uptake

Enough Windows 8 machines in the channel to last until Christmas

Fewer than 5,000 Windows 10 PCs have been sold in the western European business distribution channel since the new OS launched, according to Context, which claims high Windows 8 inventory is partly to blame.

In its sixth week on the market, which ended yesterday, just 4,200 Windows 10 machines had been shipped by IT disties in western Europe – meaning the OS has grabbed just 3.8 per cent market share in the region.

In comparison, in the sixth week after Windows 8 and Windows 7 launched, their respective market share stood at 20 per cent and 52 per cent.

Last month, Context told CRN's sister site Channelnomics Europe that in week one, just 150 Windows 10 machines had been shipped through disties in the region. According to the most recent figures divulged by Microsoft, at the end of August, Windows 10 was running on about 75 million devices.

Windows 10 represents the first time Microsoft has rolled out an OS as a service, and as a free upgrade, meaning initial adoption patterns have been different this time.

Senior Context analyst Marie Christine Pygott said the low distribution figures are not necessarily a reflection on the popularity or quality of the OS.

"It doesn't mean it is not a good OS; it is just the whole launch environment has been completely different," she said, adding that a clearer picture of its popularity will emerge in the coming months.

She said the channel has been suffering from high Windows 8 inventory since the start of the year and that this is likely to continue in some countries until Christmas, which will weigh down Windows 10 adoption.

"It does create an issue because you need to get rid of it [inventory], especially with a new operating system coming in." she said. "Products are ageing while they sit there, which doesn't really help. But on the other hand, with the free upgrade available, at least that gives more of an incentive to push Windows 8. If we didn't have the free upgrade, that would be even more difficult to get the old stock out."

Some distributors are creating a silver lining in the cloud of high inventory by cashing in on upgrade services, Pygott added.

"They have Windows 8 stock around and are offering to upgrade the system for them. While excess stock is not an ideal situation – and we have had it for a few quarters now; it's pretty bad – some retailers have tried to turn it into an [opportunity]. I wouldn't say they are turning it to their advantage – that would be an exaggeration, they don't want that stock – but they are turning it into a possibility to offer services."