Stephen Baker

Score one for Windows 7. The initial sales of the latest version of Microsoft's flagship operating system surpassed Vista's performance during its first few days on the U.S. market, according to the NPD Group.

Windows 7 unit sales in the U.S. were 234 percent higher than Vista's first few days of sales. A combination of early discounts on pre-sales and a lack of promotional activity for the Ultimate version resulted in dollar sales that were 82 percent higher than Vista.

NPD Group said Thursday that sales of Snow Leopard Mac OS X so far have exceeded Apple's two previous Mac OS X releases during their first two weeks. According to the market researcher, Snow Leopard unit shipments were more than twice the volume of Leopard's initial sales and almost four times higher than Apple's earlier Tiger Mac OS X release.

Moreover, Snow Leopard's sales only declined about 25 percent from the first week to the second, said NPD Vice President Stephen Baker. In comparison, volume shipments of Leopard and Tiger declined more than 60 percent in the second week, he added.

Wal-Mart hopes to reboot the retail market for computers Sunday by selling beefy laptops for less than you'd pay for a pint-size netbook.

The retail giant is stepping up its campaign to become a more prominent PC retailer, a move that could accelerate a broader trend toward lower computer prices.

"Other retailers will be watching closely to see if they need to respond by dropping prices for comparable products," says David Daoud, IDC tech industry researcher. "It could potentially trigger a price war."

It's the day after Microsoft announced Windows 7 pricing, and the reaction is mixed. A special two-week promotion, with a limited number of advance orders for a low-priced upgrade, is doing well.

On Thursday, the software giant said it would offer through several retailers an upgrade from Windows Vista or XP to Windows 7 Home Premium at $49.99 or to Windows 7 Professional for $99.99. The discounted OS is already a best-seller in Amazon's software category.

The NPD Group reports that unit sales of Mac computers fell 16 percent in the United States last month, even as Windows-based PC sales rose 22 percent, driven by demand for low-cost netbooks.

Even in the typically strong notebook segment, NPD noted, unit sales of MacBook laptops fell seven percent in February, whereas Windows laptops jumped 36 percent. If not for the strong netbook sales, however, Windows laptops would have risen only 16 percent.

If there were ever a time to hunt for bargains in tech, it's now. Prices for many must-have gadgets are low as lackluster demand forces manufacturers and retailers to slash prices. "Most categories continue to see [above seasonal] price declines," says Stephen Baker, vice-president of industry analysis at researcher NPD Group. The Consumer Electronics Assn. expects consumer electronics sales to slump 0.6 percent, to $171 billion this year. According to PriceGrabber.com, average selling prices on laptop computers, flat-panel TVs, navigation devices, and the like are on the decline.

Despite a dismal retail sales environment, Microsoft on Thursday hired a former Wal-Mart executive to help it launch its own retail stores.

David Porter, a 25-year Wal-Mart veteran, is joining Microsoft as its corporate vice president of Retail Stores. Porter will head Microsoft's efforts to create a better PC and Microsoft retail purchase experience for consumers. He'll report to Microsoft COO Kevin Turner.

Despite a dismal retail sales environment, Microsoft on Thursday hired a former Wal-Mart executive to help it launch its own retail stores.

David Porter, a 25-year Wal-Mart veteran, is joining Microsoft as its corporate vice president of Retail Stores. Porter will head Microsoft's efforts to create a better PC and Microsoft retail purchase experience for consumers. He'll report to Microsoft COO Kevin Turner.

Automakers aren't the only ones halting production as inventories pile up. The consumer electronics industry is also coming to grips with rising stockpiles of unsold goods that are likely to result in price pressure and falling profit.

Apple rules the high end. That's the conclusion of a recent report by the NPD Group that found the Cupertino, Calif.-based company has 66 percent of the U.S. retail market for all computers priced about $1,000.

For desktop computers over $1,000, Apple's retail share was 70 percent. For notebooks in that price range, it was 64 percent. The figures reflect sales in the first three months of this year, and they only account for store sales, not online.

14 Percent Overall