Linked by Thom Holwerda on Tue 9th Oct 2012 22:01 UTC
Microsoft Steve Ballmer's annual letter to shareholders makes it very clear Microsoft is at a point of no return - and in the middle of a transition into a hardware company. "This is a significant shift, both in what we do and how we see ourselves - as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses." Line. Sand.
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RE[2]: In plain English
by MollyC on Wed 10th Oct 2012 21:02 UTC in reply to "RE: In plain English"
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It's not so ridiculous that Apple makes more money despite having fewer employees when you stop to think about the average salary of Apple's direct AND indirect employees. The majority of Apple's employees (adding up both their direct and indirect workforce) work for just above slave wages. Only a very small percentage of Microsoft's total (direct and indirect) workforce work for such wages.

Besides that, look at companies like Sony, Yamaha, and the like. Sony makes consumer electronics, computers, movies, music CDs, life insurance, banks, magazines, and on and on and on. Yamaha is so diverse that they make everything from motorcycles to saxaphones. Those two companies have more direct and indierect employees than Apple and Microsoft combined, by far, yet make less money than either.

I'm also reminded of the AOL/TimeWarner deal, which was actually AOL buying Time Warner, despite AOL being a simple online service and Time Warner being involved in magazines, TV networks, movies, video games, etc. Time Warner had way more assets and employees than AOL, yet AOL made more profit and had way higher marketcap value at the time.

Which is to say that generally the whole system is out of whack, kind of. ;)

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