Linked by Thom Holwerda on Thu 18th Jul 2013 22:12 UTC
Microsoft The Verge, reporting that Microsoft lost almost a billion dollars with Surface RT, in this quarter alone. "At the end of the day, though, it looks like Microsoft just made too many Surface RT tablets - we heard late last year that Microsoft was building three to five million Surface RT tablets in the fourth quarter, and we also heard that Microsoft had only sold about one million of those tablets in March." That's catastrophically bad.
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RE: Terrible pricing and no apps
by skpg on Fri 19th Jul 2013 21:43 UTC in reply to "Terrible pricing and no apps"
skpg
Member since:
2012-09-21

I love the Surface RT but it never stood a chance.

Microsoft built it's company on low-cost mass volume PCs. Consumers expect cheap devices.

I wish they'd stop trying to act like Apple.


Microsoft is not a hardware company, they are a software company. The majority of Microsoft's profits come from licensing windows and office. Given that windows is the most widely used os in the world and desktop manufacturers have to pay ms a royalty fee for having windows pre-installed (it's $50 for each computer that has windows installed) that's how they can have strong earnings despite losing close to a billion dollars on Windows RT.

Microsoft also collects licensing fees from small businesses, government schools etc. And since windows has 90-92% marketshare with no close substitute, they are technically a monopoly.

It's interesting that despite losing $900 million dollars they were still profitable thanks to their monopoly licensing windows. Also no one else can license windows or fork any of their software, that is how they obtain billions of dollars every year, combined with their marketshare.

Simply put Microsoft's monopoly is the unintended consequences of copyright lasting way too long. If there was no copyright laws in software, Microsoft wouldn't be able to garner billions of dollars in licensing fees every year, and they would not able to lock the consumer to using windows, while making their software incompatible with the competition.

This chart proves my point.
http://infogr.am/Microsoft-revenue-by-division

Edited 2013-07-19 21:46 UTC

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