Linked by Thom Holwerda on Thu 25th Jan 2007 22:43 UTC
Microsoft With holiday PC sales apparently unscathed by the lack of Windows Vista, Microsoft reported quarterly earnings Thursday that topped expectations and its own forecast. The software giant said it earned USD 2.63 billion, or 26 cents per share, on revenue of USD 12.54 billion, for the three months ended December 31. That compares with earnings of USD 3.65 billion, or 34 cents per share, on revenue of USD 11.83 billion for the same quarter a year ago.
Permalink for comment 206142
To read all comments associated with this story, please click here.
Immune to market fluctuations...
by SpasmaticSeacow on Fri 26th Jan 2007 18:38 UTC
SpasmaticSeacow
Member since:
2006-02-17

Microsoft should be largely immune to market fluctuations except in the small white-box market and the server market.

The vast majority of Microsoft's revenue comes from rigid OEM licensing arrangements for desktop units, and corporate licensing customers. Vista shipping or not shipping ought not have any particular effect on anything -- OEM units will ship with whatever MS provides the OEM, and corporate customers will pay their regular license fees regardless of the OS.

Microsoft could drop OS development entirely and see absolutely no effect for several years.

The only impacts on their profitability are: lawsuits, products other than Windows, and their own marketing costs. The only reason they saw a 28% drop in earnings this quarter is because they blew all the cash on ads, fake studies, and bribes to bloggers. If you exclude those expenditures, they're gross profit rose a few percent.

They'll never see growth like Apple, but at this point there really isn't much room for growth for them.

Reply Score: 0