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HP sticks thumb in Microsoft's eye, discounts consumer Windows 7 PCs

Gregg Keizer | Jan. 21, 2014
When sales are hard to come by, every little bit helps, says analyst.

Others, both professional analysts and independent pundits, have linked Vista and Windows 8 on the flop-o-meter.

"But the timing of this seems a bit odd. I thought vendors might have done this last year," said O'Donnell

HP claimed that it was bringing back consumer PCs equipped with Windows 7 "by popular demand." (Image: Hewlett-Packard.)

A year ago, there was a larger price gap between touch- and non-touch-enabled PCs, and thus resistance, or at least apathy, to Windows 8. The gap has narrowed considerably since. "It's kind of ironic that HP is doing this now," O'Donnell said.

HP and other OEMs can continue to sell Windows 7-equipped PCs as long as Microsoft keeps selling them licenses. When it will halt those sales, however, is unclear.

The uncertainty stems from an incident last fall when Microsoft first set a deadline of Oct. 30, 2104, then retracted the cut-off, claiming a final end-of-sales date had not been determined.

Microsoft's practice has been to halt delivery of the previous Windows edition to OEMs two years after a new version launches. The company shipped Windows 8, Windows 7's replacement, in October 2012. The now-you-see-it-now-you-don't Oct. 30, 2014, date fit that policy.

If Microsoft later decides on a different OEM end-of-sales trigger, it would be the first departure from the practice, which the Redmond, Wash. company defined in 2010.

Even after Microsoft stops selling licenses, computer makers and their customers will still have ways to get Windows 7.

Windows 8 Pro and Windows 8.1 Pro include "downgrade" rights that allow PC owners to legally install an older OS. While customers must provide their own installation media, OEMs and system builders may also use downgrade rights to sell a Windows 8.1-licensed system, but factory-downgrade it to Windows 7 Professional before it ships.

Nor will enterprises with volume license agreements lose access to Windows 7, as they are granted perpetual downgrade rights as part of those agreements.

While Microsoft may not be completely happy with the Windows 7 push by HP -- especially with the OEM's line of "Featuring genuine Windows 7 Home Premium for a familiar and intuitive environment (emphasis added)," a backhand slap at Windows 8 -- a license sale is a license sale.

"The challenge of operating systems on legacy hardware is that people tend not to upgrade," said O'Donnell. "We've taught them that OS upgrades come on new hardware, and it's hard to break them of that."

Rather than buck the habit, HP's leveraging the negative perception of Windows 8 to its advantage by trying to tempt consumers who want to upgrade their PC but who do not want the new operating system.

"This will be interesting to watch play out," O'Donnell said, when asked whether others would follow HP's lead in touting Windows 7. "This won't dramatically change things, but the market needs every little bit of help it can get."


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