Microsoft will miss its one billion Windows 10 device target

Adoption of the new operating system isn't as fast as the company's expectations

Last year, Microsoft announced that it planned to have a billion devices running Windows 10 by the middle of 2018. Now, the company is saying that was too ambitious.

"We’re pleased with our progress to date, but due to the focusing of our phone hardware business, it will take longer" to reach the goal, Microsoft Corporate Vice President Yusuf Mehdi said in an emailed statement. "In the year ahead, we are excited about usage growth coming from commercial deployments and new devices.”

The missed target is rough news for the company, which has relied on that promise to attract developers to build apps for Windows 10.

Microsoft's reorganization of its phone business, to get away from manufacturing a broad selection of Windows smartphones, has been a key factor in the delay. The company announced last year that it would lay off 7,800 people in the phone business, just ahead of the Windows 10 launch.

Microsoft will still be able to make it to a billion Windows 10 devices at some point, Gartner analyst Steve Kleynhans said. In his view, the only question is how long it will take Microsoft to reach that billion-device mark. There are already 350 million Windows 10 devices ahead of the free upgrade deadline at the end of July, and businesses are aggressively deploying the new OS.

The current growth rate on PCs is about as good as Microsoft could expect, IDC analyst Al Gillen said in an email. The rest of the company's growth would have to come from devices like the Xbox and Windows smartphones. There are about 340 million tablets, 2-in-1s, and PCs running Windows 10 today, making up the overwhelming majority of Microsoft's 350 million number, he said.

Kleynhans also faulted a shrinking PC market for contributing to Microsoft's problems. The company is facing a variety of complications, including currency exchange rates that are driving down sales and Britain's recent vote to exit the European Union. He wasn't expecting Windows 10 Mobile smartphones to be major contributors to that 1 billion device number.

"Our expectations [for Windows Phones] have always been somewhat muted," he said. "So from our point of view, we weren't expecting phones to contribute much to that billion, but maybe [Microsoft was] expecting more."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftWindows 10Windows 10 Mobile

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Blair Hanley Frank

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?