The Internet Security Suites Blog

Tuesday, August 15, 2006

Microsoft Moves To The Second Place In Security Sales in the US market


Cheap pricing of its OneCare security suite helped Microsoft to get a 15 percent share of the consumer retail market during its first month on store shelves, enough to place second on the sales chart reported the NPD Group Tuesday.

"The list price of $50 was revolutionary," said Swenson, director of software industry analysis at NPD. "That slashed the current pricing in half for a security suite. That is just so cheap for a three-license SKU." Comparable bundles from existing security vendors topped $100, he said.

Microsoft's new security product -- that includes personal firewall, anti-virus, automated backup, and PC tuning utilities -- hit Symantec's sales the hardest. According to NPD, Symantec's unit share of the consumer suite market dropped from 69.9 percent in May to 59.8 percent in June; its dollar share also fell, from 74.1 percent to 68 percent. The other vendors that sell at retail, including McAfee and Trend Micro, weren't as affected by Microsoft's entry.

"Symantec is still the 800-pound gorilla in the space," Swenson told, and remains the brand to beat. He doubted that Microsoft could supplant Symantec as the leader.

"It's hard for Microsoft to compete on quality. The others, like Symantec and McAfee, have been in the business for a long lime. They have lab operations long in place, and they know what they're doing."

Although Symantec hasn't set a price for Norton 360, nor nailed down a deadline other than to say it might be as late as 2007, McAfee's foursome lists from $39.99 to $79.99.



   
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