Microsoft Forecasts 20% China Sales Gain on Anti-Piracy Campaign

| About: Microsoft Corporation (MSFT)
This article is now exclusive for PRO subscribers.

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 Microsoft 10 04 2007 Chartworld'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.

Sources: Reuters
Commentary: Piracy From China: How Microsoft, Ralph Lauren, Nike And Others Can CopeTen Steps Microsoft Should Take To Jumpstart VistaMicrosoft Continues to Lose Online Popularity
Stocks/ETFs to watch: Microsoft Corp. (NASDAQ:MSFT), Hewlett-Packard Co. (NYSE:HPQ), Dell Inc. (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 (BATS: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

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.