Kevin Stecyk

Key Takeaways From Best Buy, Circuit City Earnings: Vista's Selling Well, TVs Are Cheap

Larry, I am not sure how you conclude that Vista sales are strong. According to your own ZDNet linked article, we see that the 20 million is on a much larger base. In other words, the release of XP was much more impressive.

<blockquote>Micr... claims Windows Vista is off to a fast start, having sold more than 20 million copies since its January 30 consumer release.

By comparison, in its first two months, Windows XP sold 17 million copies, Microsoft said.

"We are encouraged to see such a positive consumer response to Windows Vista right out of the gate," Corporate Vice President Bill Veghte said in a statement Monday. "While it's very early in the product lifecycle, we are setting a foundation for Windows Vista to become the fastest-adopted version of Windows ever."

Of course, the PC market has grown substantially since XP hit store shelves. In 2001, worldwide PC shipments totaled 136 million units, while last year the industry shipped 227 million computers, according to IDC. </blockquote>

Moreover, many people bought PCs in 4Q 2006 so that they would have XP and would get the free upgrade Vista CDs. They are still waiting for all the incompatibilities to be worked out before actually upgrading.

<blockquote cite="www.cnet.com.au/softwa...">Running Creative Suite 2.0 on Windows Vista is "not recommended" and it will not update those products for Vista, Adobe said.

"While some of its components, including Adobe InDesign CS2, Illustrator CS2 and Photoshop CS2, install and run under Windows Vista with only minor known issues, other components such as Acrobat 7.0 Professional do not support Windows Vista," according to the statement.</blockqu...

What I found interesting about BBY is that same store sales in the U.S. grew only 4.8% while they grew 14% internationally. While the U.S. is experiencing real estate woes and a slowing economy, will BBY continue to hit its numbers for the remaining quarters of the year. I note that the stock is down about 1.7% while the Dow and S&amp;P are slightly up.