Microsoft hit after Vista delay
In early trades on the Nasdaq exchange, Microsoft’s share price was down 66 cents (2.38 percent) at 27.08 dollars.
The company said late Tuesday that the much-heralded Vista operating system will be ready in November, but only for big businesses.
Consumers and small businesses will have to wait until January, meaning that Microsoft and makers of personal computers will miss out on lucrative end-of-year holiday sales.
As recently as late February, Microsoft had said the successor to Windows XP would be available for both consumer and corporate customers in the second half of this year.
Matt Rosoff, an analyst at independent consultancy Directions on Microsoft, said the delay means Microsoft and PC makers will miss out on a wave of upgrades that Vista could have helped spark over the holiday period.
"It’s certainly disappointing for the PC manufacturers that had hoped Vista would help holiday sales, and this is a flagship product that already had been plagued by a number of delays," he said.
"It’s nothing that’s going to harm the company in the long run, but it’s definitely a setback."
Microsoft executive Jim Allchin said the software giant had decided to postpone the consumer launch to allow more time for testing security features.
"Our business partners in the Christmas selling season need time, and confidence, for that season," said Allchin, co-president for the platforms and services division at Microsoft.
"We have decided to come out with a sure date they can rely on."
One beneficiary of the Vista delay was Apple Computer, whose share price was up 52 cents (0.84 percent) at 62.33 dollars.
Merrill Lynch analyst Richard Farmer said Apple will benefit from "a less competitive market for another holiday season against an ageing Windows offering".
Inet-Bridge
Loading ...