Microsoft China CEO Timothy Chen told Reuters he expects 2007 sales to jump 20%, bolstered by the company's anti-piracy campaign and new products. Major software and PC vendors, including Microsoft, Hewlett-Packard, Dell and Lenovo have been pressuring the Chinese government to clamp down on previously rampant piracy. China is the world's second biggest PC market. Of more than 20 million units shipped last year, more than 50% carried legal copies of Windows, data-tracking firm IDC says. Chen says that only 30% of Lenovo PCs currently sold contain pirated Windows copies, down from an estimated 90% last year. He also said that growth would come from new product sales such as Microsoft's recently introduced Vista OS; it plans to roll out seven new products in China this year and another six in 2008.
Commentary: Piracy From China: How Microsoft, Ralph Lauren, Nike And Others Can Cope • Ten Steps Microsoft Should Take To Jumpstart Vista • Microsoft Continues to Lose Online Popularity
Stocks/ETFs to watch: Microsoft Corp. (NASDAQ:MSFT), Hewlett-Packard Co. (NYSE:HPQ), Dell Inc. (NASDAQ:DELL), Lenovo Group Ltd. (OTCPK:LNVGY). Competitors: Oracle Corp. (NYSE:ORCL), Novell Inc. (NASDAQ:NOVL), International Business Machines Corp. (NYSE:IBM). ETFs: iShares Goldman Sachs Software Index Fund (NYSEARCA:IGV), Software HOLDRS Trust ETF (NYSE:SWH), PowerShares Dynamic Software (NYSEARCA:PSJ)
Conference call transcript: Microsoft F2Q07 (Qtr End 12/31/06) Earnings Call Transcript
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