Windows XP may be released early

By Joe Wilcox
08 August 2001 10:03 AM
Tags: software, windows, windows xp, pc makers, microsoft, release, ship, october
Starting next month, some new PCs could include an unexpected accessory: Windows XP.

Microsoft has given PC makers the go-ahead to ship Windows XP as much as one full month before the operating system's official October 25 launch date, sources close to four major PC makers told CNET News.com.

Computer makers plan to debut PCs and notebooks with the new operating system in late September, a move that could help jump-start stagnant sales.

"The industry is hoping to see some kind of upgrade cycle starting with XP," said ARS analyst Toni Duboise. The early release from PC makers "means we could start out the fourth quarter (shipping PCs) with XP; it could only be beneficial."

For Microsoft, the early release of Windows XP has an additional benefit. The company is advancing its release schedule to ship Windows XP ahead of any possible injunction that would delay the new operating system's debut, analysts said.

While a federal appeals court in late June threw out a lower court's order breaking Microsoft into two companies, the bulk of the monopoly case emerged intact and a lower court is free to determine a remedy in the case.

"Because a new remedy would be forward-looking, that could include (Windows) XP," said Andy Gavil, an antitrust professor with Howard University School of Law. "There's no reason to think the government is not considering an injunction against XP."

Microsoft on Tuesday asked the Supreme Court to reconsider the appeals court ruling that the software maker abused its monopoly power. According to some analysts, the action could make it more difficult for the Justice Department and 18 states to seek an injunction against Windows XP.

Microsoft could send PC makers the final--or gold--code for Windows XP as early as August 15, or about two weeks ahead of schedule, the sources said. That would allow PC makers to sell systems with Windows XP installed in September. But the sources warned that Microsoft could change plans at any time, and that nothing is certain until the code actually ships.

Consumers looking to upgrade existing PCs would have to wait until October for the retail version of Windows XP to ship. Businesses subscribing to one of Microsoft's licensing programs could begin upgrades by late September, sources said.

Along with Windows XP's shipment, Microsoft also is set to release Internet Explorer 6 sometime in the next week. The Web browser will be included with Windows XP and will be available for other Microsoft operating systems.

Jim Cullinan, Windows XP lead product manager, declined to discuss the timing of Windows XP's release or Internet Explorer's ship date, other than to say, "we are on schedule to launch (Windows XP) on October 25."

Sources close to four PC makers said that they had been instructed by Microsoft not to promote the Windows XP systems before October 12. Those computer manufacturers selling through dealers could ship PCs to stores starting September 17.

Neither move--early release of the gold code or availability on new systems--would be unprecedented. PC makers, for example, also started selling previous releases of Windows, including Windows Me and 2000, ahead of their launch dates. In the case of Office XP, Microsoft released gold code nearly two months ahead of the official May 31 launch, with some PC makers selling the productivity suite on new systems about 30 days earlier.

PC makers, looking for a big sales boost from Windows XP, are hoping the new systems will appeal to back-to-school shoppers during a period typically marked by strong PC sales.

"At the least, XP will get people to come out to kick the tires, so to speak, whether they buy a Windows XP PC or not," said IDC analyst Roger Kay.

US PC sales declined 8.1 percent during the second quarter, according to IDC. Kay questioned "whether XP will really do much" for holiday sales whether it's available to some in September or everyone in October.

Duboise agreed. "I don't see a lot of people standing in line for XP," she said. "It might start a slight upgrade cycle, but I don't think it will make a big difference."

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