Cloud Sherpas

Microsoft Office sales down, but don't blame Google Docs?

July 14, 2010: 11:44 AM ET

NPD reports today that Microsoft Office 2010 sales are much lower than its initial release of Office 2007 and only slightly improved over its Office sales earlier this year.

NPD gives a few reasons for the lackluster consumer launch, which began just two weeks ago.

  • Office 2007 was launched alongside Vista
  • The Office Suite market is saturated
  • Office 2010 was launched during a seasonally slow period for PC purchases [I'd add Intel just announced record earnings and IDC just announced strong PC growth]
  • Office 2007 was a radical new design, 2010 not so much

I'd add that low-priced netbooks, which were just becoming popular in 2007, are now much more prevalent in the market today.  Most netbooks do not come with Microsoft (MSFT) Office pre-installed to keep prices below the $300 mark.  Open source alternative Open Office is often found on these machines.

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