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Microsoft Profit and Loss by Business Area

An anonymous submitter writes "The Register is reporting in this article striking new evidence of what in my opinion can only be described as abuse of their monopoly position. A recent SEC filing shows that they lose money in every business area except Windows (86% profit) and Office (79% profit)." Another notes that the Financial Times has a story on the same subject - Dr. No writes "According to the Financial Times, Microsoft's Windows division has a profit margin of 85%. This is the first time this figure has been made public." The full version of Windows XP costs about $300.00. Microsoft could sell it for $45 and still make a profit. The difference between the $45 price and the $300 price is what economists call "monopoly rents".

12 of 894 comments (clear)

  1. So what now? by attobyte · · Score: 0, Troll

    What is the government going to do about it? NOTHING... I think this is proof that they are pigs. This will never make it to the main stream media so no one will ever care. This is just something I can add to my list of why I hate M$.

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    I didn't use the preview button, so get over it!!!!

    Mike

  2. And this is news... by sparkz · · Score: 1, Troll

    because? MS profit on Windows and Office, their cash-cows. They use this profit to do other stuff. The difference between this any any other company would be ... what, exactly? This is not news, this is not even vaguely interesting. If MS made more from their mobile phone business than from Windows, that would be "News for Nerds" *and* "Stuff that matters". This is neither. It isn't even news (and hasn't been for at least a decade)

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    Author, Shell Scripting : Expert Re
  3. Sheesh by Reality+Master+101 · · Score: 1, Troll

    The full verison of Windows XP costs about $300.00. Microsoft could sell it for $45 and still make a profit. The difference between the $45 price and the $300 price is what economists call "monopoly rents".

    And what do they call it when Red Hat could sell it for fifty cents instead of the $300 (or whatever it is) for the server version?

    Once again, Michael has absolutely no clue what he's talking about.

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    Sometimes it's best to just let stupid people be stupid.
  4. Everyone's complaining because... by The+Ancients · · Score: 0, Troll

    Microsoft see their 'window' of opportunity, and take it...and take it...and take it..and keep taking...

  5. Re:Monopoly! by UTPinky · · Score: 0, Troll

    Just like the RIAA could sell CDs for $5.95 and still make a profit. These guys make me sick!

    <sarcasm>But then the artists won't make any money. And after all, the RIAA is only doing this for the artists... or so they claim</sarcasm>

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    I'm only paranoid because everyone is against me...
  6. Re:85%? by Anonymous Coward · · Score: -1, Troll


    yes, and the whole world operates on such simplistic terms. Note the words BASIC and the term 101. I'm sure so many advanced ecomonists only studied to the 100 level in college, and then went out and got jobs. Take your Mickey Mouse advice and shove it up your ass with your boyfriend's dick, and let someone who knows a little bit more about the complexities of such things get a say in. You stupid fucker, your like the dipshit that applies simpleton logic to everything. "Did the power supply in my computer die because I had so many games installed." How do you deal with shit like that? When someone says something SO STUPID, like your post, that you can't even begin to point out how stupid it is. Anything you present if so far over their head that you can't even find a way to say "um no." Trust me, you are one stupid motherfucker and we'll just leave it at that, cum drop. You just apply that simple formula to MICROSOFT ECONOMICS (snicker) and maybe they'll give you a job! "His simplicity is such a breath of fresh air! Give him a corner office!" cripes.

  7. You're missing the price. by Anonymous Coward · · Score: -1, Troll

    The remaining MS products are selling at typical market value. Stop spreading lies, this is something Hitler would stoop to.

    1. Re:You're missing the price. by Anonymous Coward · · Score: -1, Troll


      The remaining MS products are selling at typical market value.


      So, what's your point? They are obviously not able to produce them efficiently even at "typical market values", otherwise, they wouldn't be losing money on it.

      Stop spreading lies, this is something Hitler would stoop to.

      Do you know where Hitler got his propaganda techniques from? From US public relations firms and experts, the same folks that are now selling you Microsoft products and cigarettes.

  8. Slashdot & The Register FUD as usual by swissmonkey · · Score: 0, Troll

    One more proof that these two websites are less and less appealing to people who have a brain and use it.

    Windows XP shares >90% of its code with .NET Server, both products were written by the Server platform group, not the Client group.

    This explain why the Client group has such a high percentage of profit and why the Server platform group didn't.

    It shouldn't be that hard to use your brain once in a while instead of spreading lies about your opponent, it actually might even be useful and intelligent.

  9. Re:Bashing party! by targo · · Score: 1, Troll

    Actually, you said:

    So the costs of R&D are probably nicely offset by the tax benefits.

    This sounded pretty much like 100% to me.

  10. This obsession with MS is very jihad-ish. by Anonymous Coward · · Score: -1, Troll

    It's just like the Muslims who actively seek out Jews just to be irritated by them so they can hate them. I swear, if Aliens transported everything Microsoft to a different planet, the Linux jihadists would find a way to travel space, just simply to go wage war with Gates.

  11. Microsoft hatred has killed one lady already. by Anonymous Coward · · Score: -1, Troll

    I can give you an extreme example of this unbelivable hatred Linux users have for Gates. There was a Linux zealot whose mother had to be hospitalized. she needed some quick life saving surgery, and was set to undergo it the next day. Due to her incapacitation, the son was to come sign consent papers the next morning. As he waited with his mother that evening, he started to look up the procedure on the Net, just to learn more. He was very focused, and learned quite a lot, from details on the actions to be used, to equipment needed for the procedure. Then he came acoss the fact that one of the machines was run by a very specialized MS piece of software. It was the only one available for use on that machine. After searching all night for a non MS replacement with no success, he refused to sign the papers, citing that no piece of MS product was to be used on his mother. The doctors pleaded with him to sign, they let him know that this one piece of machinery was crucial to helping his mother not die. The son would not budge, the operating room had to be MS free, or there would be no operation. Needless to say, his mother died the next morning. To this day, the son has no regrets for refusing his mother to be operated on with MS product.

    This is the type of mentality that Linux users have. They would actually let their mother die before dirtying their hands with anything MS. To develop a hatred like this so strong for a company is very disturbing.