What is the activation status of Windows 10 pre-installed on a PC that is never connected to the Internet?

Question

A description of a particular PC model says that the computer has Windows 10 Pro on it. Does this imply that Windows is already activated? I am asking because I have read that Windows 10 requires Internet connection for activation. For example, I have read various answers here:

www.quora.com | What is pre-installed Windows 10?

Some of them say that Windows is activated, some say that the Internet will be needed for activation.

What I have found is this:

The default product key is also known as the OEM master key, the OEM manufacturing key, the OEM setup key, or the OEM SLP key.
The default product key is edition-specific and cannot activate Windows. Instead, it instructs Windows to search for the injected OA 3.0 product key in the firmware.

(Source: https://docs.microsoft.com/en-us/windows-hardware/manufacture/desktop/oa3-staging-master-image-w-default-key)

And this:

The Windows activation system is designed to use the product key that's injected into the firmware of the computer during manufacturing. It automatically activates the device when the device first comes online.

(Source: https://docs.microsoft.com/en-us/troubleshoot/windows-client/deployment/validate-oem-activation-key)

And this:

OEM versions of Windows 10 are identical to Full License Retail versions except for the following:

OEM versions require an active internet connection that can reach the Microsoft network for product activation.
If your organization operates on a closed network, please contact your account team to discuss the benefits of a Volume Licensing (VLA) solution from Dell.

(Source: https://www.dell.com/support/kbdoc/en-us/000126935/requirements-for-dell-windows-10-activation?lwp=rt)

And this:

All HP computers and tablets shipped with Windows 10 will activate automatically when connected to the internet.
[...]
Activating using a Digital Product Key or OEM Activation 3.0 (OA3): Windows 10 is activated via the internet by validating a Digital Product Key (DPK) that was included in the BIOS.
[...]
If a system has a Digital Product Key that was injected into the system BIOS during the manufacturing process, Windows 10 will use that key to activate Windows 10 on that specific system. Activation is automatic when connected to the internet. All HP systems sold with Windows 10 will include a Digital Product Key in the BIOS.

(Source: https://support.hp.com/us-en/document/c04640037)

And this page contains two seemingly contradictory statements:

If your ASUS computer is with the built-in Windows operating system when you purchased it, a digital license had been injected into the ASUS motherboard of your product, and Windows will be automatically activated after the computer connects to the internet.
[...]
For ASUS computer built-in Windows system, its Window has been activated.

(Source: https://www.asus.com/support/FAQ/1015074/#Win10)

I cannot understand what it means. Windows "will be automatically activated" or "has been activated"?

So my question is: if this PC will never be connected to the Internet and an end-user will not perform any actions to activate Windows (such as using the phone for activation, running a program etc.), will the pre-installed Windows 10 remain unactivated? Or maybe the answer depends on the model of a PC (i.e. some models are sold with pre-activated Windows, yet some models are sold with the assumption that the user will need to connect a PC to the Internet to activate the OS)?

UPDATE

I have found the following information:

Most OEM-provided devices designed to run Windows 8 or later will have a firmware-embedded key.

(Source: https://docs.microsoft.com/en-us/windows/deployment/deploy-enterprise-licenses)

Firmware-embedded – never needs to be on internet connection, it can be in a deferred activation state and never watermark
[...]
Firmware-embedded activation key is the Windows OEM license (Digital Product Key (DPK) also known as Digital License) which comes embedded in the device firmware and reflects the version that the device was purchased with (Home or Pro).

(Source: https://moderneuc.com/windows-activation-evolution/)

But I cannot seem to find a comprehensive source describing what the "Deferred activation" state is. Is it automatically extended to last until a PC goes online? The only reliable source mentioning this state is the HP document (linked above). All other mentions of this state that I have found are in the context of Windows IoT/Embedded, which is not relevant for my question. For example, I have found the following information:

Do you know if deferred activation has some limitations, such as less access to windows settings, etc.?

Personalization settings will be blocked, but you can get around those with group policies and registry settings.

(Source: https://docs.microsoft.com/en-us/answers/questions/492619/windows-10-iot-enterprise-offline-activation.html)

This may imply that the "Deferred activation" state is not a complete simulation of the "Activated" state, from the functionality point of view...

Answer 1

The other answer says:

No legally preinstalled Windows comes pre-activated.

While this statement is true regarding the fact that full windows activation requires an online connection to Microsoft servers for OEM preinstalled Windows and Retail Windows, it is also misleading because OEM preinstalled Windows installations will not ship non-activated either, they will ship in what is now called the the state of Deferred Activation. What is usually understood as an activated Windows is a fully functional installation without any time limit, watermarks on the desktop or messages prompting for activation. This answer details limitations of non-activated Windows with screenshots for 8 but is applicable to 10 as well.

Usually all OEM installations use SLP with a generic product key while retail Windows uses individual product keys entered during Setup.

The latest incarnation of SLP is version 3.0 and many details regarding the activation have changed with the introduction of Windows 8. Prior to version 3 the SLP method was called the OEM activation method because it activated with firmware information alone, without internet or phone activation needed. OEM activation was an offline process, while for retail Windows installations using individual product keys the online or phone activation was mandatory to reach the fully functional state. The information in the firmware was a SLIC ACPI table with generic non individual information. For Windows to activate using the generic product key and the generic firmware information an OEM certificate matching the hardware SLIC had to be installed in Windows. This means the OEM activation was usually only available with the pre-installed image of Windows on the computer and with the OEM supplied factory recovery solution because a freshly installed Windows from Microsoft supplied ISOs would not contain the certificate.

But since Windows 8 with SLP 3.0 the whole process is different because every firmware has a unique licence key embedded in a MSDM ACPI table.

Form a Windows cmd you can display the firmware embedded product key with this command:

wmic path SoftwareLicensingService get OA3xOriginalProductKey

It looks like a normal product key but it will not work if entered directly into setup or the change product key screen because it is bound to the motherboard of the particular OEM PC.

The correct way to make Windows use this embedded product key is to enter one of the generic product keys. The list of the generic or default OEM product keys in the wikipedia article above is not exhaustive, the full list of Windows 10 keys released by Microsoft is here, they are documented as follows:

The default product key is edition-specific and cannot activate Windows. Instead, it instructs Windows to search for the injected OA 3.0 product key in the firmware.

Prior to OA 3.0 the activation of the OS and the validation of the license were presented to the end user as two separate processes. The online validation was called genuine advantage. This validation of the license was only necessary to receive automatic updates via the internet. The mention of validation as the final step can still be found in the current documentation liked above:

Windows Activation and Validation Services (Windows AVS)
A Microsoft web service that validates the Windows operating system and finishes the activation process after an end user completes the out-of-box experience (OOBE) process.

It's save to assume that all standard PCs and Laptops sold from bigger manufacturers use firmware embedded activation and according to the information you provided in the question were not connected to the internet before. On the other hand it could be that you will get a System Builder Version of Windows (equivalent to a retail version) for a custom build computer with non-OEM hardware from a smaller manufacturer with an individual product key, but most probably it would be online activated by the manufacturer during the custom build process.

Documentation on what exactly the Deferred Activation means is scarce, some sources on the internet claim, that the 'Windows activation' screen under 'Settings - Update & Security' will show

Connect to the internet to activate Windows

when in the state of deferred activation.

The HP service document is very specific about the fact that an OEM activated device that never activated online can be used without limitations:

If the system cannot be connected to the internet and activated, the system is in the 'Deferred Activation' state. Windows 10 can be used normally while in 'Deferred Activation'. No message is displayed on the desktop indicating that Windows is not activated. A system with a valid DPK or Product Key will activate automatically when connected to the internet.

So what exactly is the the state of Deferred Activation? It seems to be the state of a freshly installed Windows 10 that was never connected to the internet.

The license status of a non-activated Windows is called "Notification" by slmgr /dli or "Windows is in Notification mode" by slmgr /xpr. The license status of an activated Windows is "Licensed" and "The machine is permanently activated"

A clean installation from a Media Creation Tool Windows 10 21H2 ISO on offline OEM hardware containing a MSDM table using an empty hard disk clicking "I don't have a key" in Setup installs the generic "Retail" or "RTM Generic Key (retail)" key and Windows is in "Notification" mode. For Home Edition this is equivalent to:

slmgr /ipk YTMG3-N6DKC-DKB77-7M9GH-8HVX7
slmgr /dlv

---

Changing to "OEM:DM" or "Generic product key for manufacturers" key and Windows is in "Notification" mode. For Home Edition changing the key can be achieved by:

slmgr /ipk 37GNV-YCQVD-38XP9-T848R-FC2HD
slmgr /dlv

---

Changing to "OEM:NONSLP" or "Generic product key for system builders" key and Windows is in "Notification" mode. For Home Edition changing the key can be achieved by:

slmgr /ipk 46J3N-RY6B3-BJFDY-VBFT9-V22HG
slmgr /dlv

---

The 'Windows activation' screen under 'Settings - Update & Security' shows in all cases:

Unable to reach Windows activation servers

---

But none of the limitations are there. The

Windows is not activated

message only appears after the key is removed. Removing the key can be achieved by:

slmgr /upk

Then functional limitations like the disabled personalisation appear:

After you add one of the generic keys and still be offline it will revert back to fully functional like above.

Once you connect to the internet it will quickly activate with a digital license and it doesn't matter which one of the three generic keys is used.

Changing to "Retail" or "RTM Generic Key (retail)" key and Windows is in "Licensed" mode:

---

Changing to "OEM:DM" or "Generic product key for manufacturers" key and Windows is in "Licensed" mode:

"OEM:DM" should be the real one for firmware embedded licenses.

---

Changing to "OEM:NONSLP" or "Generic product key for system builders" key and Windows is in "Licensed" mode:

---

If you stay offline after that quick online activation it will always revert back to "Licensed" mode after you remove the key or change the key.

Another experiment in an offline VM revealed that setting the system clock forward several months never actually showed the "Windows is not activated" message and personalisation continued to be available. This is consistent with the observation that there is no mention of a grace period in the screenshots of the slmgr /dlv output above compared with the screenshots in the linked answer about Windows 8 activation messages and limitations. Manually installing the monthly cumulative updates works without issues, so the activation or validation is not necessary for that either. Note the "Installed On" date in the following screenshot is about three months in the future from the time of writing.

Windows 10 seems to be very graceful in an offline environment and so far it seems can be used without limitations with the generic keys for an unlimited time.

To conclude, the "Windows is not activated" mode with limitations and messages only appears after you go online and activation fails with the generic keys because your hardware does not contain a valid key for the particular edition of Windows in the firmware and you would be supposed to enter a valid and unique product key.

Answer 2

No legally preinstalled Windows comes pre-activated. Bulk installations usually have a key saved and read from the BIOS, so the key from the box doesn't have to be entered AFAIR, but the last few PCs that I bought for friends still had to be activated nevertheless, though it happens more or less automatically. Pirated copies have usually some sort of KMS preinstalled which technically simulates a server that would activate or confirm the activation of the local copy. Normally KMS is used by bigger companies that use it to manage the activation. Technically Windows XP Pro was the last Windows version that had some sort of mechanism, where some keys were accepted without any external activation factor like internet or phone.

So yes, in my experience it will remain unactivated.