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Computer Demand Boosts MS Profits

elzurawka wrote to mention a BBC article discussing Microsoft's boost in profits as a result of an upswing in PC demand. From the article: "The company announced record revenue of $39.79bn for the fiscal year ending on 30 June, an 8% increase over the $36.84 billion reported last year. The main drivers of sales for Microsoft's Windows, Office and Server software products - PC makers and Asian component manufacturers - have reported healthy demand for PCs."

181 comments

  1. Millions of Linux users around the world by DebianDog · · Score: 0, Offtopic

    Really?!?! WTF!

    1. Re:Millions of Linux users around the world by Leroy_Brown242 · · Score: 4, Funny

      Yeah, in other news . . The summer is increasing the demand for water! Winter increases lightbulb usage! and Increased car usage ramps up need for better roads!

    2. Re:Millions of Linux users around the world by Anonymous Coward · · Score: 1, Interesting

      How does the first post get modded redundant?

    3. Re:Millions of Linux users around the world by Alex+P+Keaton+in+da · · Score: 3, Insightful

      This may make me the master of the obvious, but... As there is more bus. on the web, there will be more servers. As a computer becomes more of a requirement for daily life, there will be more of them, and thus more software. As the "greatest generation" dies off, and is replaced by new babies, the percent of people using computers will go up, and this, there will be more computers. As the so called "un-developed" world becomes developed, more computers will be sold... and so on and so on...
      And another point....
      GM in the 70s?
      Sometimes I think we are too much geek and not enough business in our thinking. Mod this however you wish, but I see a parallel with GM. I have a 1978 Caddy Coupe Deville that I never drive, except the occasional weekend. Why does that matter? 1978 was the best year ever for GM. They had the biggest market share in their history, and the biggest profits. And they made crappy cars. In the 80s, people wanted better quality, sure, and that is something that would take a company like GM a long time to change- but the little things customers wanted- cupholders are a prime example- GM just wouldn't do. GMs thinking was that they will buy our cars, and they will like them, and we will make them how we please. Well, the Japanese put cupholders in their cars, which people wanted. (I know quality was also a huge issue, but that is beside this point), and lo and behold- people were happy. Microsoft pushes things on consumers and the consumers accept them, just like GM of old. The point- after 1978- GM declined quickly as alternatives blossomed, heck, now their bonds are rated in the junk range. When will microsofts 1978 happen, if ever? Who knows- but don't think that companies with huge market share are invincible.

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    4. Re:Millions of Linux users around the world by Kierthos · · Score: 1

      Because morons are allowed to moderate.

      Kierthos

      --
      Mr. Hu is not a ninja.
    5. Re:Millions of Linux users around the world by mOoZik · · Score: 3, Insightful

      Except millions of computers users DON'T want Linux! They don't want to fumble with a difficult OS that's reserved [mainly] for the computer literate. Microsoft gives these people what they want. Why should they go out of their way to get a TuxBox? Your analogy would hold true if MS was actually putting out that PEOPLE IN GENERAL (read: not the average Slashdot reader) abhorred. As MS keeps adding new features to Windows (mostly stuff centered around the computer as a multimedia tool), Linux tries to catch-up with the basics, such as gaming, the lack of support for many applications and hardware, and so on and so forth. If anything, Linux is the OS that thinks people will adopt it and choose over a more superior (from the POV of a consumer) OS. This is the reason why it is relegated to servers, which are customized/operated/etc. by geeks.

    6. Re:Millions of Linux users around the world by Anonymous Coward · · Score: 1, Insightful

      except you already defeated your own point. Microsoft is giving people what they want. They're now demanding security, and microsoft is focusing on security. The general public doesn't give a sht if M$ is open source or closed, as long as the product works, and does what they want. So tell me where the comparison lies?

      What exactly has microsoft "pushed" on consumers? Outside of forcing them to upgrade to get new features (which in my personal opinion they bend on far too often from whiny consumers) they don't force much of anything.

      In that sense though, let me know how nissan reacts when you bring them your 1978 datsun and ask for them to install air bags, ABS, and a cd player for free, because well... the new version has that bundled with the car and you think you should get it in your old version too.

    7. Re:Millions of Linux users around the world by Alex+P+Keaton+in+da · · Score: 3, Insightful

      You are 100% correct- I was thinking more along the lines of Apple being the Japanese, or a company that hasn't even been started being the Japanese. (Who in the 60's would have thought a motorcycle maker named Honda would ever have the domination they have in the auto world.) To extend the analogy maybe further than it should be- maybe companies like ferarri or MG would be the Linux- companies that in the 70s made vehicles that were alternatives for enthusiasts those who knew how to repair them, but not for grocery getters.
      And to take it one step further- if cars ran perfectly forever, there would be no mechanics. If computers ran perfectly, well, a lot of us would be looking in the help wanteds.
      I guess my point is that it is never easy to see how a company with a near Monopoly or huge market share can ever lose it w/out gov't intervention- but it can happen quickly.... (Pennsy RR, A&P in the late 1800s etc.) Hindsight is always 20/20... which reminds me- I once dated an optometrist- during sex, she would move around a lot and say "is it better like this, or better like this...."

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    8. Re:Millions of Linux users around the world by ZephyrXero · · Score: 2, Interesting

      Wrong yet again...these people don't want Windows or Linux or even Mac. They simply want a computer that they can use to do their daily activities and work on. Depending on what you do with the computer, Linux can be just as easy if not more so than Windows, and vica-versa. If we can just get more software companies supporting Linux, more people will want it. People don't buy Windows for Windows' sake, they buy it for the software that runs on Windows.

      --
      "A truly wise man realizes he knows nothing."
    9. Re:Millions of Linux users around the world by mOoZik · · Score: 1

      People don't often buy Windows, FYI: it comes pre-loaded with computers. If computer manufacturers saw a market for selling Linux-loaded boxes (and some certainly do,) then that would be different. But 9 out of 10, a consumer will choose a Windows box.

    10. Re:Millions of Linux users around the world by Anonymous Coward · · Score: 0

      People don't often buy Windows, FYI... 9 out of 10, a consumer will choose a Windows box.

      Um...

    11. Re:Millions of Linux users around the world by jacksonj04 · · Score: 1

      I'd personally say partially right and partially wrong. A lot of the reason for going Windows is the software, but an equal amount is the fact that software for Windows just works. Software for Linux, on the other hand, frequently needs recompiling for minor differences between distros.

      Standards are essential. Microsoft has them, Apple has even more. Linux has very few, not for UI, data transfer, or even where to store the damn config files.

      --
      How many people can read hex if only you and dead people can read hex?
    12. Re:Millions of Linux users around the world by SABME · · Score: 1

      People did not start buying brands other than GM at the end of the 70s because they wanted cupholders.

      They changed because they were tired of waiting in line for an hour or more to fill up at the gas station (OK, I'm old because I remember this), and they wanted cars that were more energy efficient.

      If the barriers to using Windows (price, ease of use, bugs, etc.) are too difficult to surmount, then people will switch (not likely, given the current state of affairs).

      OTOH, your analogy to auto buying trends away from gas guzzlers at the end of the 70s might apply to the SUV market now if gas prices keep rising ...

    13. Re:Millions of Linux users around the world by Anonymous Coward · · Score: 0

      I once dated an optometrist- during sex, she would move around a lot and say "is it better like this, or better like this...."

      Was she turning the lights on and off?

    14. Re:Millions of Linux users around the world by Klaus+Obermeyer · · Score: 1
      Except millions of computers users DON'T want Linux!

      Right, they want an operating system that will run Solitaire, the Internet and Office. Whether that underlying is Linux, OSX or Windows the could care less.

    15. Re:Millions of Linux users around the world by canuck57 · · Score: 1

      Except millions of computers users DON'T want Linux!

      But millions if not billions do want Linux. So why should they have to pay for Microsoft if the computer is going to run Linux, BSD or Solaris? BTW, most Chinese servers are Linux and in fact it is hard to find web servers resident in China that use Microsoft.

      Essentially Microsoft has garnered a position where as they get a tax on each computer sold by manufactures like Dell. Businesses often even pay twice, once with the bundled version with the hardware and again with the corporate wide contract. A stupid waste of money.

      And like a car, I might make it go with Conneco, Shell, Esso/Imperial, etc. I would never buy a car where I had to go to one vendor to get fuel to make it go.

      That's why I don't buy PCs with bound licensing as like times before, the wind changes and Windblows. I have enough open and unused Microsoft licenses on the shelf.

  2. Yay! by ShaniaTwain · · Score: 0, Offtopic

    ..or Boo, depending on your personal preference.

    The real story is going to be when teledildonics demand boosts MS profits.

  3. The reason for MS's performance by Anonymous Coward · · Score: 2, Funny

    They let the drivers of sales run in ring 0 which may perform better but exposes to kernel to crashes if the drivers are not thoroughly debugged.

    1. Re:The reason for MS's performance by pg110404 · · Score: 1

      exposes to kernel to crashes

      It doesn't really matter. MS reboots automatically from a kernel embarrasement and the driver resumes its sales. YOU CAN'T STOP IT!!!! IT'S A JUGGERNAUT!

  4. From the desk of captain obvious ... by nospmiS+remoH · · Score: 5, Funny

    In other news, the oil industry attributed increases in gas sales to an increase in automobile sales.

    --
    !hoD
  5. Thats why by RompeRatones · · Score: 0

    Me:Yeahhh, i bought a pc!!! Salesman: Yes, and it comes with a pre-installed windows! Me: Ouch!

    1. Re:Thats why by eln · · Score: 3, Informative

      You buy your PCs retail?

      If you're smart enough to run Linux, you ought to be smart enough to build your own machine, or at least get your local computer shop to build one for you. Most Mom and Pop computer retailers sell systems they build themselves without an OS installed, and their prices are usually cheaper than the big box retailers. Support your local computer shop!

    2. Re:Thats why by lukewarmfusion · · Score: 1

      I agree, but only for consumers or small businesses with very little computing need.

      Try building and supporting fifty or more home-brew computers and their users. Meanwhile, Mom and Pop stores have a hard time competing on price with Dell/Gateway/HP - even without the OS.

      So the cost of the machines, plus the cost of the manpower to install, support, whatever, plus the increased cost of support due to Linux (because your users aren't all Linux folks) can be difficult to swallow. So saving money on the mainstream purchases (and the accompanying support) can be very attractive.

    3. Re:Thats why by AKAImBatman · · Score: 2, Informative

      Support your local computer shop!

      I was pretty happy with parts I got at a computer small computer shop in California. All the components were of high quality, and I could reach over the desk and strangle someone if it didn't work. Unfortunately, such shops don't seem to exist here in Chicago. There's big places like MicroCenter, but I don't really trust them. I received suggestions for NewEgg.com, but they didn't carry the parts I wanted. In the end, I ended up getting parts from MWave.com. They had everything I needed, good prices, and the service was fast. I can't speak to complaints (since I didn't have any), but they may be worth checking out. :-)

    4. Re:Thats why by kicken18 · · Score: 1

      I have always used my local computer shop, ok it closed down a few years ago but about 4 months later a new one popped up in its place. Although for the past 5-6 years i have built my own computers i still use them for parts and advice

      --
      Visit My Blog at http://spaces.msn.com/members/chrisharries
    5. Re:Thats why by CaymanIslandCarpedie · · Score: 1

      Very true. However, if you are making purchases in the area of 50 machines at a time, at least all the big boys that I deal with are happy to put whatever I want on it (or in my case nothing on it).

      --
      "reality has a well-known liberal bias" - Steven Colbert
    6. Re:Thats why by superpulpsicle · · Score: 1

      Oh I have bought stuff from Mwave before, they are definitely good. Except all the shops of Mwave caliber are in California. I live no where close to it.

  6. Meanwhile.. by BlackCobra43 · · Score: 4, Interesting

    Microsoft stock falls 2.5% due to its "lackluster revenue outlooks" http://today.reuters.com/investing/MarketReportArt icle.aspx?type=usMktRpt

    --
    I never spellcheck and I freely admit it. Save your karma for more worthwhile "lol erorrs" replies
    1. Re:Meanwhile.. by Anonymous Coward · · Score: 1, Insightful

      You got really scratch your head when a company literally makes billions and their stock declines while companies that lose money and have shaky business plans skyrocket.

      I made a small fortune in trading during the internet boom because of these idiots.

    2. Re:Meanwhile.. by wwwojtek · · Score: 2, Informative

      this is not "insightful" but actually quite silly - that a company makes billions tells me nothing about the direction of its stock price changes. The price should be high but it may be declining or increasing depending on changes in expectations of profits

    3. Re:Meanwhile.. by coflow · · Score: 2, Informative

      This really just shows that MS is no longer considered a "growth" company. The software they sell is mature and other than their groups that are currently losing money, there's not enough room to grow to support a P/E ratio of 100 or whatever it was 6 or 7 years ago. And even the divisions that are in "growth" categories look like small peanuts compared to the sheer size of their OS and office revenue.

      Once MS started paying a dividend, it was clear they themselves had come to grips with the fact that they were no longer a ocmpany that can expect near triple digit growth every year.

    4. Re:Meanwhile.. by CaymanIslandCarpedie · · Score: 1

      Yeah, sometimes you can only scratch your head ;-) Google is also down about 5% today (last I checked) after announcing they beat estimates. Sometimes "the street" is just in a funky mood ;-)

      --
      "reality has a well-known liberal bias" - Steven Colbert
    5. Re:Meanwhile.. by krbvroc1 · · Score: 1

      Burns: What!? Blast his hide to Hades! [thunder roars outside]
      And I was going to buy that ivory back-scratcher...

    6. Re:Meanwhile.. by Anonymous Coward · · Score: 0

      What, they're only going to make $30 billion? Or $25 billion. Yeah, better bail. Christ on a crutch.

    7. Re:Meanwhile.. by Anonymous Coward · · Score: 0

      P/E of 100 for MSFT? Look up the fucking number!. Their PE is 25.67 with 1.03 Earnings per share on a share price of 25.74. http://ca.finance.yahoo.com/q?s=MSFT&d=t

      Normally you want PE of about 50, so microsoft can still go up.

      It is Google that is overpriced with PE of 125.

    8. Re:Meanwhile.. by coflow · · Score: 1

      RTFP, I was talking about 6 years ago. Here's a chart: http://quicktake.morningstar.com/Stock/Valuation10 .asp?Country=USA&Symbol=MSFT&stocktab=valuation You can see that I may have exaggerated, but you'll see a P/E of ~65 for 1999. Quite a different story than the current ~25. And a P/E of 50? you don't "normally" look for a general P/E ratio. Different industries have different ratios based on expectations of growth. Again, if you'd RTFP, I was talking about the fact that MS is a very mature company and not likely to have a much higher P/E than say an Altria or a GM.

    9. Re:Meanwhile.. by zippthorne · · Score: 1

      afaik, the "rule of thumb" is a PE of ~17. I don't know the reasoning behind it, but if I were to make an argument it would go something like this:
      At a PE of 17, if the entire earnings were converted to dividend, the value of the stock would not go up and so the price would not as well, your return would be almost 6%. If the return was significantly less than that then you'd be better off putting your money in a bank account or anuity rather than deal with the risks inherent in partial company ownership.

      Since I believe the market is efficient, eventually whatever metric describes best the return on investment will fall to near or slightly above (due to the risk) the typical return for other types of investments. this will occur either through the earnings rising to the appropriate level while the stock stagnates or the through the price dropping to the appropriate level. In other words, a lot of people (or one really unfortunate person) are going to get burned on google and microsoft eventually. Hopefully not for a while.

      With stocks, it's hard to separate the ponzi part from the real growth part. P/E gives us a tool to help figure that out.

      IANAaccountant though.

      --
      Can you be Even More Awesome?!
  7. I'm not important enough... by spammeister · · Score: 1, Interesting

    I suppose that the fact that I help as many people possible to not "buy" MS products has no effect on their sales. I guess I'm not trying hard enough.

    --
    I tried to think of a good sig, and this wasn't it.
    1. Re:I'm not important enough... by bersl2 · · Score: 1

      Could be all the "sales" they get through OEM versions. "Somebody sold a computer? Well, there's another sale of Windows!"

      [insert typical gripe about uncompetitive MS behavior]

      (didn't RTFA; instinct tells me I'm wrong about these numbers including the OEM sales)

    2. Re:I'm not important enough... by tolkienfan · · Score: 1
      Having read the article, I'd say the majority of the revenue increase was due to OEM sales.

      And I'd bet that a sizeable percentage of the servers sold had Windows replaced by Linux or FreeBSD

    3. Re:I'm not important enough... by ThisIsFred · · Score: 1

      You're too late. Microsoft "sells" the OEM licensing in advance, so what you're doing doesn't have any effect; it's already bought and paid for. If you manage to haggle with the OEM and get a full refund for their OEM pricing, you're only screwing the OEM, not Microsoft.

      --
      Fred

      "A fool and his freedom are soon parted"
      -RMS
  8. stock price.... by joelanders · · Score: 3, Informative
    1. Re:stock price.... by ProfaneBaby · · Score: 4, Informative

      Stock price was inflated in the past few days on expectations of the earnings report. You'll notice that on Monday, the price closed around 25.6. Here at 10AMPST on Friday, the price is still around 25.74, which means it's still up from the beginning of the week.

      Wall Street can be a cruel mistress. Just because you make money doesn't mean your stock price goes up. You have to make enough money. It's about meeting and exceeding expectations, not just posting a profit.

      --
      Video Phone Blogs send video messages straight to the web.
    2. Re:stock price.... by Apreche · · Score: 1

      It's true. And it's sad, because that fact is causing a lot of harm in this country. If stock prices went up just for being profitable then companies would be a lot less inclined to do corrupt, unethical and shady things to get ahead. Things like outsourcing, false accounting, etc. would happen a lot less. It's easy to be profitable without doing things people wont like. It's hard to be insanely profitable.

      --
      The GeekNights podcast is going strong. Listen!
    3. Re:stock price.... by Monkelectric · · Score: 1
      Wall Street can be a cruel mistress. Just because you make money doesn't mean your stock price goes up.

      The entire problem with the stock market is just that. You are supposed to be buying stock for the *DIVIDENDS*. But P/E ratios are out of whack, so people are buying for speculation ... which is a bad idea to say the least.

      --

      Religion is a gateway psychosis. -- Dave Foley

    4. Re:stock price.... by coflow · · Score: 1

      Some investors should buy stocks for *dividends*. Some do not care about dividends today. A company that pays dividends is effectively saying that the money is worth more in the hands of the owners of the company that is worth if they were to plow that money back into the business. If I owned part of a company, and the treasurer told me that he could either give me $1M in cash, or take that money and turn it into $2M in three years, I'd have to ask myself what I could turn that $1M into, and compare the two.

  9. not even close! by intmainvoid · · Score: 2, Interesting
    an 8% increase


    8 percent is nice and all, but when Apple's just announced a 75% increase in revenue does it even rate a mention?

    1. Re:not even close! by doublem · · Score: 1

      For MS it's 8% of a MUCH larger sales number.

      If I had the choice of having 8% of the MS net sales or 75% of the Apple net sales, I'd got for the 8%. It should be a MUCH larger number.

      --
      "Live Free or Die." Don't like it? Then keep out of the USA
    2. Re:not even close! by rhyno46 · · Score: 0

      When you are talking about more than $30 Billion I think it is very noteworthy.

    3. Re:not even close! by BooRolla · · Score: 1

      Umm, I'd much rather recieve the 8% increase of MS revenue than the 75% increase in my pocketbook. Just because the % increase is higher doesn't mean the ACTUAL VALUE is higher

    4. Re:not even close! by Golias · · Score: 2, Interesting

      Well, a layman might still find those numbers extremely newsworthy, as it seems to indicate that Apple is growing at nine times the rate of Microsoft.

      But ignoring the statistical anomolies of comparing percentages instead of straight numbers, it doesn't make sense to compare the two companies.

      Microsoft makes an OS, but most of their money comes from being a software company. Yes, Windows is on almost every PC in the world (usually at an OEM price of less than $40 a pop), but MS-Office, which costs a lot more and brings in much better margins, is on almost every PC and almost every Mac. Plus there's the money they make on IIS Servers, Exchange Servers, etc.

      When compared to other software companies, Microsoft remains a giant. When it comes to wide-distribution, consumer-level software, they are leaps and bounds ahead of what little competition is left.

      Apple makes an OS, but most of their money comes from being a computer company. Yes, they get their $129 a year from the hard-core OS X nerds like me, but a lot of users will just buy every other generation of OS X. The do have a couple of software products, but they are mostly there for the sake of pimping computer sales.

      Macs don't sell in quite as high of quantities as Dell or HP, but they do outsell a lot of the smaller players, and make more money than just about any PC maker, due to their high margins. Also, they are realizing a hell of a lot of their revenue now from selling iPods, iSight cameras, and other computer-related gizmos.

      So, it's silly to compare Apple's revenue to Microsoft, but at least slightly interesting to compare them to Hewlett Packard, Gateway, Dell, etc. When viewed in that light, Apple is clearly not dominating the market (because nobody is... Dell holds a lead for now, but a year from now, who knows. Some plucky company like eMachines could come along and take it all away from them), but Apple is extremely doing well when lined up against these other companies.

      The big thing that Apple has going for it is that they are just about the only ones left who are selling a computer with an OS that sets it apart from the competition. Even if it's an OS which only a small fraction of the public wants to use, they totally own that fraction. This results in Apple exectives sleeping a lot better at night than most PC makers, who fret over their position in a cut-throat, razor-thin market.

      --

      Information wants to be anthropomorphized.

    5. Re:not even close! by Anonymous Coward · · Score: 0

      Well, Microsoft reported net sales for the year of about 39.79 billion dollars. Apple estimates net sales for the current fiscal year to be 8.28 billion dollars.

      So, you would really want 8% of MS net sales instead of 75% of Apple's net sales?

    6. Re:not even close! by doublem · · Score: 1

      Well, whe you throw real numbers into the mix...

      --
      "Live Free or Die." Don't like it? Then keep out of the USA
  10. Rewarded by GabboFlabbo · · Score: 0, Redundant

    Congrats Microsoft!

    They should be rewarded for their breakthrough innovations and competitive pricing!

    Oh wait a minute... replace "breakthrough innovations and competitive pricing" with "Monopoly"

    1. Re:Rewarded by Antimatter3009 · · Score: 1

      And replace "should be" with "have been"

  11. Whoopie..... by Capt+James+McCarthy · · Score: 1

    When you are talking that many billions, what is a few more or less.

    Obviously, I'd take a percentage point of that cash anyday and retire.

    --
    There are no loopholes. It's either legal or it's not.
  12. Compared to North Carolina by pastpolls · · Score: 4, Funny

    $39b for MS, as comprared to only $19b in gross collections for the NC Dept of Revenue for 2003-2004. I hope my state does not end up on the MS radar, it could get outsourced.

    1. Re:Compared to North Carolina by qbert980 · · Score: 1

      Well, would you rather be outsourced to M$, or India/China/Mexico?

      This is not a rhetorical question. I really want to know.

    2. Re:Compared to North Carolina by Anonymous Coward · · Score: 0

      Now you know why NC and the other states has such a big budget.

    3. Re:Compared to North Carolina by pastpolls · · Score: 2, Funny

      Well, I have not thought about it.

      China is communist, so I would not want to get outsourced to them because they would limit my internet access and my ability to play Battlefield 2 (just being honest).

      India is better that China, but the odds are I would end up in a one room shack that may or may not have running water, while my house gets bought by the few rich. There is not really a middle class in India, so I would assume I would go down rather than up. There are a lot of cows in NC, so there would be limit as to where I could move.

      I guess my choice would have to be Mexico. My housing complex could be turned into a resort (I am 5 minutes from the ocean). What I have in savings could support me for years. I don't buy bottled water now, but I guess I could start. Mexico it is then.

    4. Re:Compared to North Carolina by qbert980 · · Score: 1

      While your reasoning has been backed up by well-thought-out arguments, I'm sorry to inform you that I can only give you partial credit. Your arguments as to which foreign country you would rather be outsourced to are adequate, but you have not convinced me as to whether or not you would rather be outsourced to Mexico or M$. (or should I have deduced that M$ was at the bottom of the list?).

      Overall, nice work. I'll give you a B- (which when converted to the Mexican grading system equals an A+++)

  13. Thanks to Dell et al by Anonymous Coward · · Score: 0

    I think that a major part of this is that for the past few months manufacturers have been severely discounting their machines, Dell in particular. Several people on FatWallet.com own several machines just because they received such good deals. If Dell were to take off the MS tax, however, the situation would change significantly.

    1. Re:Thanks to Dell et al by westlake · · Score: 1
      If Dell were to take off the MS tax, however, the situation would change significantly

      not once in five years have I heard the phrase "Microsoft Tax" used outside of forums like Slashdot. economies of scale make the price of an OEM Windows system very attractive.

  14. Re:Monopoly by BewireNomali · · Score: 1

    dude, I know. And even with the divisions that lose cash (all the other ones) they are amazingly liquid. Scarily so, actually.

    It's really scary.

    --
    un burrito me trampeó.
  15. MS Business Plan by Innova · · Score: 5, Funny
    1. Design operating system with poor security.
    2. People throw away old computers with malware.
    3. Sell more licenses to operating system.
    4. Profit!!!
    1. Re:MS Business Plan by varmittang · · Score: 2

      Better list:
      1. Design operating system with poor security.
      2. Lock all PC makers into shipping Windows.
      3. People throw away computers with malware and buy another one that still runs Windows.
      4. Profit!!!

      5. Rince and Repeat

      Just imagine if Apple did open up OSX to the PC side. How quickly this plan would put them into debt, but its the #2 that keeps them going.

      --
      -----BEGIN PGP SIGNATURE-----
      12345
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  16. Now if we could just get Windows unbundled from pc by Anonymous Coward · · Score: 0

    Other OS might have a better chance of competing on a more level playing field. The one thing that I really wished would have happened with the DOJ case a few years ago was that MS Windows would no longer get preinstalled on new pcs. Buy the pc, chose the os and then install it. Pipe Dream. Anyone up for another antitrust antimonopoly try with real results seek unbundling Windows from being preinstalled on new pcs, instead of a (relatively for MS) small $$$ settlement.
    I'd like to say "Hasta la Vista" to the MS Windows Monopoly!

  17. Microsoft has won. by Renraku · · Score: 1

    Microsoft has already won. Now they make profits whenever any large computer manufacturer sells a computer. They could shut down now and pay their employees for the next few years off the profits from new computers alone.

    --
    Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
    1. Re:Microsoft has won. by NineNine · · Score: 1

      Microsoft has already won. Now they make profits whenever any large computer manufacturer sells a computer. They could shut down now and pay their employees for the next few years off the profits from new computers alone.

      Well, you don't ever really "win" in business per se. You always still have to work to stay on top. But yeah, they have tons and tons of money... what's your point?

  18. The reason is obvious! by ballstothat · · Score: 1
    People are throwing out their old computers because of spyware infection, and buying new ones to avoid the hassle, according to the New York Times.

    Link: http://www.nytimes.com/2005/07/17/technology/17spy .html

    There is no doubt what those new machines come pre-installed with.

    --
    10
    20 Print "Balls To That"
  19. And just look how little tax they pay by Anonymous Coward · · Score: 2, Funny

    Who needs hospitals and edumacation anyway.

    1. Re:And just look how little tax they pay by CaymanIslandCarpedie · · Score: 1

      True enough, but don't rag on MS for this rag on the US Tax code. For the last fiscal year (2004 since I haven't seen the 2005 income statement yet) MS paid about 10.94% of revenue in income tax. Compare this with everybody's favorite Google, which paid 7.87% of revenue. Its about 44.59% based on profit instead of revenue for MS and 39.23% for Google.

      So if you base it on profit instead of revenue it gets much more in the area of what I bloody have to pay. I wish I could pay taxes on my profit instead of my revenue!

      --
      "reality has a well-known liberal bias" - Steven Colbert
  20. Re:Of course by jxyama · · Score: 1

    Right, that's why the revenue went up.

  21. P/E = 25 by Anonymous Coward · · Score: 0

    MSFT has had a flat chart for quite a while.
    5 year chart.
    I hate these bastards, but they are starting to look like a "buy".

  22. Wow, so they're up by GuitarNeophyte · · Score: 1

    So, when you're on almost all of the PCs, and there's more PCs bought, you actually make more money?

    When in doubt, report the obvious! Then, at least it's good ol' cynicism feed for /.

    Luke
    ----
    Do you like ketchup? I just found the most hilarious stand-up monologue all about ketchup. Go read it!

    1. Re:Wow, so they're up by Mistlefoot · · Score: 3, Insightful

      When people are throwing away computers to 'fix spyware' and then buying a new computer - and a new version of Windows XP - almost by force - then yes, profits will be up.

      This shouldn't be the way.

      The old version of xp should be more than enough for the new Hardware but Microsoft OEM policies almost prevent this.

      This should be remedied by law. This is abuse of their almost monopoly.

    2. Re:Wow, so they're up by danheskett · · Score: 1

      The old version of xp should be more than enough for the new Hardware

      Except, since the OEM's are required by contract to support their users in return for getting a 70% below retail rate for the software, the OLD hardware maker would have to support the NEW hardware makers users.

      So, for example, you buy a Gateway, and Windows is hosed. And you toss that box out. Then you buy a Dell because you are ignornant that Windows is the reason, not the hardware. If they could just transfer that license, the user would have to call Gateway to get support for their Dell machine, since Gateway was the one who sold the copy of XP and agreed to support it.

      See how crazy that is? What user wants that? It's the ultimate in finger pointing. Now matter what, Dell will say it's Windows, call Gateway. Gateway will always say the issue is hardware related. The user will be in the middle, and will be SOL more than ever.

      The prohibition has everything to do with support.

      If you buy a retail or open license version of XP for retail or nearly retail or whatever you can find it for, you get support direct from MS according to their terms, regardless of your hardware vendor. And yes, that is fully transferrable.

      This is abuse of their almost monopoly.

      And finally, this is an absurd statement. There in no prohibition against being an "almost monopoly". MS's business practices - even the ones that landed them in court before - are completely 100% legal for non-monopolies (which is why they skated for so long). When the settlement expires next year MS once again have no special restrictions on its business.

      Any new suits regarding abuse of monopoly will have to first start by proving MS has a monopoly, which considering the beating MS takes at the hand of Linux, Apple, FireFox, etc is very very difficult.

    3. Re:Wow, so they're up by Mistlefoot · · Score: 1

      "Microsoft OEM policies almost prevent this."

      I clearly commented that OEM policies prevented this. You then went on to spend 5 paragraphs explaining why OEM policies prevent this. So you agreed with me but replied as if you were correcting me. A bit odd but hey.

    4. Re:Wow, so they're up by Anonymous Coward · · Score: 0

      It wasn't that funny, and plus, it reminded me of ketchup, the mere smell of which brings me close to vomiting.

  23. coincidence? by kwoff · · Score: 3, Insightful

    Something else that might boost MS profits. Free advertisement as three MS-related stories were posted to slashdot within 4 hours.

    1. Re:coincidence? by qbert980 · · Score: 1

      So under the cloak of being against M$, /. is just another fly in their web?? Where's my tinfoil hat?

    2. Re:coincidence? by Anonymous Coward · · Score: 0

      This crap got modded insightful?

      Jesus.. that was like borderline troll.

    3. Re:coincidence? by logic+hack · · Score: 1

      Yes because /. is known widely on the Internet as huge fans of MS's products, thus being a prime audience for such 'free advertising'.

  24. Awesome! by Tibor+the+Hun · · Score: 1

    Good to know we're on the right track.
    We just purchased 40 computers preloaded with XP home (apparently we couldn't get them without it), and then had to purchase 40 licenses (150 a pop) for XP Pro.
    Good work Microsoft, I feel so happy about this, and that my potential is your passion!

    Thank you, thank you so much.

    --
    If you don't know what AltaVista is (was), get off my lawn.
    1. Re:Awesome! by Anonymous Coward · · Score: 0

      why didn't you just buy them with Pro to begin with? That would have been a more logical choice.

    2. Re:Awesome! by gatkinso · · Score: 1

      I also wonder about this....

      --
      I am very small, utmostly microscopic.
    3. Re:Awesome! by Anonymous Coward · · Score: 0

      And you know why they can keep doing it? Because people keep shelling out the money when pinched like this. Remember, you _can_ refuse to buy something you don't want. You don't have to just keep pumping out the dollars and then complain about it later.

    4. Re:Awesome! by Anonymous Coward · · Score: 0

      Now, whose fault is that, really?

    5. Re:Awesome! by tomstdenis · · Score: 0, Flamebait

      ... um fucktard, goto a local computer shop you trust and ask them to build 40 computers. Not only will it be cheaper and easier to collect [no mailing from Texas for instance] but you can avoid the MS tax easily.

      I dunno about you guys but EVERY computer [aside from my laptop since it's hard to buy laptop parts like you can desktop parts] I've bought came either with no HD at all or a blank HD which I loaded [by my choice] DOS, Windows or Linux on.

      Tom

      --
      Someday, I'll have a real sig.
    6. Re:Awesome! by sci50514 · · Score: 0

      HP sells Linux preloaded onto certain business class computers. You don't have to pay your MS tax this way. Plus those models run on AMD chips too and are much better value than the Dells.

    7. Re:Awesome! by karnal · · Score: 1

      Let me add to this.

      Where I work, I could never put through an order to a local computer shop. Why? Because corporate purchasing won't let me.

      Sometimes, the hand that holds the money makes all the decisions.

      --
      Karnal
    8. Re:Awesome! by guaigean · · Score: 1

      Legally, you have the ability to return the disks and opt out of Windows entirely. It is illegal for MS or others to force an OS on you. This is what they got in trouble for in the first place. Read your vendors rules or find a new one. Don't perpetuate corporate greed because of your own laziness.

      --
      Microsoft Sucks, F/OSS Rocks. I get mod points now right?
    9. Re:Awesome! by Tibor+the+Hun · · Score: 1

      Well, I was gonna reply with why I can't do this, but I saw that you had lots of other flamebait posts, so I'll just let you wallow in your own dellusion.

      But thanks for taking time to give me a suggestion, no matter how irrelevant it is.

      --
      If you don't know what AltaVista is (was), get off my lawn.
    10. Re:Awesome! by Anonymous Coward · · Score: 0

      Oh dear. What a shame you just wasted all that money when you could have bought some nice machines with OSX or Linux pre-installed. You'll also be really upset that Windows XP is so horrible to use. If you are lucky and act fast you may be able to send everything back and save yourself a lot of pain. Act now!

  25. Microsoft growth is actually slowing down by Anonymous Coward · · Score: 0

    Our revenue growth rate was 10% in fiscal 2001, 12% in fiscal 2002, and 13% in fiscal 2003

    Quite a drop back from +10%, but it's still growth, though. Like the constant pull of gravity against a skyward bullet, it decelerates to zero before heading back.

  26. Revenue Growth Will Turn Negative Soon by Anonymous Coward · · Score: 0, Interesting

    Revenue growth is on its way right down. That is why the stock is down and has been falling for the past five years.

    That is also why you see people fleeing to Google.

    That is also why you won't be seeing very many, competent, people wanting to go work for MS. No propsect of stock growth, no reason to work at the company.

    It will be fun when the revenue growth turns negative. Given the 11 billion or so shares issued, look at how little that 50 billion in cash was actually worth just to keep the stock proped up over this last year.

    It is sell,sell,sell time for MS execs with stock still to unload - look at the insider sales reports to see just how much faith the current exec team has in MS's future growth.

    Wrapping your mind around how many shares have been issued over the years by MS will help you wrap your mind around just how little cash they are making per share compared to other investments. And why people keep expecting them to hand out billions in cash to buy their way into new markets as the OS and office suite markets come under assault from open source.

  27. Sure glad... by Anonymous Coward · · Score: 0

    I can say I avoided adding to Microsoft's coffers... I build my own PC's. Other than this (refurbished) laptop that I'm on, which had Windows pre-installed on it.

  28. It is not all bad news... by JimStoner · · Score: 1
    The article points out that the market has given a "lukewarm response" as they dont think Microsoft's growth is sustainable.

    Brought to mind this link (which I originally saw on the front page of Joel on Software):

    http://blogs.apress.com/archives/000449.php?author =gary_cornell/

  29. Re:Of course by doublem · · Score: 1

    They're still making a lot of sales, but the BAS has made it clear that they should be getting a LOT more money!

    If the increase is 8% of previous sales, think of what it would be if they were getting paid for 100% of new installs instead of just 2%!

    I've been reading the BSA web site. They told me all about it.

    Software users are all evil. The BSA told me so.

    --
    "Live Free or Die." Don't like it? Then keep out of the USA
  30. Argh... by CarlinWithers · · Score: 2, Funny
    Every time my inner geeks feels pleased with the idea that MS is starting to release it's control of the computer industry...

    I am then crushed by an article about MS doing really well.

    I sincerely hope that MS is in fact loosing it's dominance. Not because I hate Microsoft, but because the continued dominance of MS means yet more time we'll spend without significant innovation through competition.

  31. What's Really News is... by Anonymous Coward · · Score: 0

    Why did the PC sales go up?

  32. What will crush the market by Henry+V+.009 · · Score: 1

    Many people I know buy a new computer because of all the spyware and adware on their old one. (No, don't hit reply, yes they should be installing Linux on their old boxes instead.) I wonder what will happen to Microsoft's profits if they were ever to win the battle against malware?

    As an aside, I have never had trouble keeping my Windows XP box malware clean (I've been running XP since it came out). I run a spyware/anti-virus check every so often that never picks anything up except false positives. The secret to it is keeping your machine updated, not clicking OK to dodgy messages from websites, and not clicking on attachments.

  33. Mods on crack again! by Spy+der+Mann · · Score: 1

    Parent shouldn't be modded offtopic! In that case, redundant would do. So I'd vote for insightful to compensate for the bad karma.

    1. Re:Mods on crack again! by j-tull · · Score: 2, Insightful

      I couldn't agree more!

      The /. crew is really taking the humor out of this board. Why be funny when, at best, it'll have no effect on your karma? At worst, humorless mods will kick your arse down to karma hell!

      (\me prepares to sink into the abyss yet again)

  34. Outsourcing by vlad_petric · · Score: 3, Interesting

    M$ is one of the big companies that hasn't done major layoffs in the States. In fact, they were hiring when very few others were. You can't really accuse them of outsourcing. Sure, there's tons of reasons to hate 'em, but this one ain't it.

    --

    The Raven

    1. Re:Outsourcing by Baloo+Ursidae · · Score: 1

      Yes, we can. For example, every person Microsoft hires in California puts a far more deserving Oregonian or Washingtonian out of work.

      --
      Help us build a better map!
    2. Re:Outsourcing by MerlinTheWizard · · Score: 1

      That being said, and all jokes aside, maybe the overall quality of their software would improve if they outsourced more. ;-)

  35. The power of pre-installs by Anonymous Coward · · Score: 0

    If all cars makers were forced to install an Alpine car radio, wouldn't Alpine be a monopoly too!

    Message from the "well duh!" department.

    1. Re:The power of pre-installs by Anonymous Coward · · Score: 0

      Now wait a second....

      There is no law saying that if I own HP I "HAVE" to install MS. There is also no law that says that MS has to offer me Windows.

      So if I own HP / Car company. I could sell my computers /cars without a OS/Radio any time I would care to. Now if the world demanded or wanted an alpine radio then I better give one.

      Now if I have a deal with Alpine and then I decide to offer Bose. Alpine has every right not to play ball with me. It happens everyday and it is called business.

      If Alpine told me...sell them and you don't sell us. Well if everyone in the world demanded or at least bought Apline I would stay with Alpine.

      Back to the HP part of this. The world wants Windows or at least thinks they do. So computer companies offer. If we did not want Windows on a large enough scale they would tell MS to go fly a kite and start selling what everyone wants. Supply and demand.....

      Now is it fair for Apline to say sell Bose and we go. Maybe not.

      I am not a MS lover I just wish people would direct they hate the have for them in the right places. No one forces anyone to do anything...they do it because we want/buy it and if they don't give it they in turn hurt their business.

      Like I said if 90 percent of the people used Linus then everyone would sell it.

      Lets try to keep this on track here....

  36. Percentage Shhmercentage by ShaniaTwain · · Score: 4, Informative

    Uhh.. Apple Revenue rose 75% to $3.52 billion from $2.01 billion, while MS rose 8% to $39.79 billion. That 8% increase alone is more that Apple's total Revenue, its all relative.

    One thing I'm sure we can agree on though: if they keep increasing at this rate it won't be long until they both have infinite income!

    1. Re:Percentage Shhmercentage by Kiryat+Malachi · · Score: 5, Informative

      An 8% increase yielding 39.79 billion implies that the revenue was 36.84 billion, meaning that 8% is 2.94 billion, meaning that the 8% increase is *not*, in fact, greater than Apple's total revenue of 3.52 billion.

      Brought to you by the Association For Numerical Fact Checks, a division of Mathematical Bitch Slaps Inc.

      --

      ---
      Mod me down, you fucking twits. Go ahead. I dare you.
      (I read with sigs off.)
    2. Re:Percentage Shhmercentage by Scarblac · · Score: 1

      One thing I'm sure we can agree on though: if they keep increasing at this rate it won't be long until they both have infinite income!

      Eh? Exactly the opposite: if their relative growth percentage continues to be finite each year, their income will always be finite.

      --
      I believe posters are recognized by their sig. So I made one.
    3. Re:Percentage Shhmercentage by EMH_Mark3 · · Score: 1

      word.

      --
      Burn the land and boil the sea, you can't take the sky from me
    4. Re:Percentage Shhmercentage by John+Newman · · Score: 1
      Uhh.. Apple Revenue rose 75% to $3.52 billion from $2.01 billion, while MS rose 8% to $39.79 billion. That 8% increase alone is more that Apple's total Revenue, its all relative.
      Apple's number is quarterly; Microsoft's is for the entire year. For the last twelve months, Apple's revenues were $11.1 billion. It's incredible that Apple is up to around 1/4-1/3 of MS's revenues after their recent growth spurt - quite respectable. Of course, they're still not anywhere close to as profitable, but no one else gets away with literally printing (pressing?) money like Microsoft.
    5. Re:Percentage Shhmercentage by d34thm0nk3y · · Score: 1

      Traditionally mathematicians tend to round 2.9472 to 2.95 since you are beind pedantic.

      Brought to you by the Association For Numerical Fact Checks, a division of Mathematical Bitch Slaps Inc.

    6. Re:Percentage Shhmercentage by ShaniaTwain · · Score: 1

      Good point, it's only more than the previous years revenue - a billion here, a billion there, sooner or later it adds up to real money!

      Math is hard, lets go shopping!

    7. Re:Percentage Shhmercentage by Wolfier · · Score: 1
      is more that Apple's total Revenue

      is more than Apple's total Revenue

    8. Re:Percentage Shhmercentage by mrRay720 · · Score: 1

      Well to be fair that's because Apple and MS have significantly different business models.

      MS work mostly with expensive one off costs that are then able to be copied at very little cost - ie software.

      Apple are a hardware company - per unit costs are always going to give them significantly lower profit margins (given a good enough scale for MS). Oh that make an OS, too.

      The differences aren't because MS are printing money, or because Apple are rubbish - they're just doing quite different things.

    9. Re:Percentage Shhmercentage by Kiryat+Malachi · · Score: 1

      The statement as written was false. Don't try and point out it would have been true some other year as an argument against that fact.

      --

      ---
      Mod me down, you fucking twits. Go ahead. I dare you.
      (I read with sigs off.)
    10. Re:Percentage Shhmercentage by Kiryat+Malachi · · Score: 1

      Too bad the answer isn't 2.9472, then.

      (Hint: (39.79 / 1.08) * .08 = 2.94740741 - if you want to be truly pedantic, get it right down to the last decimal - if you're just comparing less than or greater, the 4th decimal place just isn't that important.)

      Also, it's "being", not "beind".

      --

      ---
      Mod me down, you fucking twits. Go ahead. I dare you.
      (I read with sigs off.)
  37. Inaccurate... by mcho · · Score: 1
    reported the following:
    Microsoft's top finance executives project stronger-than-average, double-digit revenue growth going forward, fueled by SQL and Visual Studio upgrades in its server and tools division. The Redmond, Wash., software giant also expects the launch of the Xbox 360 game console later this year to drive more than 50 percent revenue growth in its home and entertainment division.
    The MBS Unit is slowing down, but "[Microsoft] also anticipates rising revenue in its Windows client licensing business, which declined by 9 percent for the 2005 fiscal year."
  38. Boycott Dell, HP, Gateway by Anonymous Coward · · Score: 0


    The MAIN drivers are the major computer OEMs refusing to offer CONSUMERS an alternative to Microsoft.

    I suggest boycotting these companies until they offer CONSUMERS a choice.

  39. No shit? by Kamiza+Ikioi · · Score: 1

    Besides special deals with schools, does anyone out there buy Windows in the cardboard box in the Software Isle? No?

    Then I think it's a reasonably good chance that this is one of those "special" moments. Let's all share it! Everyone gather 'round! Ready?!? Ok, let's say it all at once... 1... 2... 3...

    No shit!

    --
    I8-D
    1. Re:No shit? by kicken18 · · Score: 1

      well i got an OEM version which comes in a plastic sleeve...not posh cardbord, but still a packet

      --
      Visit My Blog at http://spaces.msn.com/members/chrisharries
  40. This just in... by blakespot · · Score: 5, Funny
    A team of famed mathematicians have make the breakthrough discovery that the integer 2, when added to another integer of the same value (2), results in a sum total of the integer 4. Early speculation that the resultant integer would be 5 or 3 has been shattered. Stay tuned for further details on this revelation.


    blakespot

    --
    -- Heisenberg may have slept here.
    iPod Hacks.com
  41. And what is so surprising about it? by ratta · · Score: 1

    More than 90% of computers are sold with Microsoft tax. The interesting thing is that i was thinking that microsoft was going to low its prices (a lot) to compete in third word countries, but as everyone can see, this is not required.

    --
    Wondering why i am doing so strange posts? I am trying to get a "+5,Flamebait" or "-1,Insightful" rating.
  42. Xbox360? by rkraken · · Score: 1

    In the article, Microsoft's CFO says they will "benefit greatly in the next financial year from a new Xbox video game console..."

    How is that possible as console makers typically lose money on each console early on? On top of less sales of the original Xbox as they move closer to launch of the new one...

    And does anyone really think the new Xbox will be as successful as they seem to think?

    1. Re:Xbox360? by Anonymous Coward · · Score: 0

      "And does anyone really think the new Xbox will be as successful as they seem to think?"

      Not going to happen.

      Japan is already lost to MS and the 360.

      No one who owns a PS2 or GameCube is going to give a damn about a weak piece of hardware rushed out the door to avoid having to be compared to the PS3 and Revolution.

      A large number of xbox owners are expressing their loss in faith in MS after the Halo 2 fiasco and the awful E3 360 demos. The PS3 looks like it is only going to be a few months after the 360. MS thought they would get a full year but that looks like it isn't going to happen.

      MS is looking at losing a large chunk of their current xbox installed base. Although I'm sure MS will find some way to claim the 360 is 'the fastest selling' as they usually do come November...

    2. Re:Xbox360? by Jason+Earl · · Score: 1

      Early on, hah. Microsoft's XBox lost something like $391,000,000 last year. The folks at Microsoft were stoked with that because they lost $1.2 billion the year before and even more obscene amounts the previous years. The XBox 360 apparently is going to be even more expensive to manufacture. Expect Microsoft to flush several billion more down the tubes getting people to put XBox 360s in their living room.

      However, Microsoft has to say good things about the XBox because the XBox is about the only project that Microsoft has going right now that has potential for serious growth. That's the reason that Microsoft hasn't flushed the XBox project after losing billions on the debut hardware. If Microsoft were to admit publicly that the XBox isn't going to generate huge new revenues then investors might begin to wonder why it is that they are paying a premium for MSFT.

    3. Re:Xbox360? by temi · · Score: 1
      Are you serious?

      What "Halo 2 fiasco" are you talking about? Halo 2 pushed mainstream console gamers into the realm of subscription based gaming like no other game before. The revenue from that base alone is absolutely ridiculous and if the subscriptions can carry over they will shatter everyone. No other console player in the game right now has CLOSE to the amount of paying subscribers that MS has. That is the key, continued revenue without the necessary production of more titles. So how is MS losing a chunk of their install base? If you have Halo 2 and subscribed to play online, why are you all of a sudden cancelling your subscription and going over to the not-yet-existing PS3 online network?

      You sound like a blind troll funded by Sony

    4. Re:Xbox360? by Anonymous Coward · · Score: 0

      If you look at how much money Sony lost initially on the PS2, a few billion is nothing. You make it back in spaids later in the console's life.

  43. Yeah, but Apple is like 1% of the market. by Anonymous Coward · · Score: 0

    Gimme 8% of 95% rather than 75% of 1 percent.

    (90% of the astroturfers, maybe ... but still 1% of the market. )

    Even linux is bigger than Apple.

  44. 40 Billion dollars? by bogie · · Score: 1

    They could so give me like 2 million and not even notice. What would it hurt?

    Do you think that somewhere in Redmond there is a room where Bill, Steve, et al go and have money fights with $1,000.00 dollar bills like Mr. Burns and Smithers used to?

    --
    If you wanna get rich, you know that payback is a bitch
  45. Speaking of Cynicism... by ZephyrXero · · Score: 1

    Does the US government even make $39 Billion a year??? That's just too much money for one company to be making no matter whether you like their products or not...

    --
    "A truly wise man realizes he knows nothing."
    1. Re:Speaking of Cynicism... by Anonymous Coward · · Score: 1, Funny

      Agreed. We should imprison them so that other people get the idea that they shouldn't become too successful...

      Strive for mediocrity.

  46. Re:Of course by hcob$ · · Score: 1

    80% of all statistics are made up on the spot.

    --
    Cliff Claven
    K.E.G. Party Chairman
    Founding Leader of: Koncerned for Egalitarin Governance
  47. Maybe by kevin_conaway · · Score: 1

    Maybe if everyone didn't chuck their computer everytime it got spyware on it, the demand wouldn't be so high!

    / Just sayin'
    // Oops wrong site

  48. Re:Of course by doublem · · Score: 1

    I hear it was 94%...

    --
    "Live Free or Die." Don't like it? Then keep out of the USA
  49. A better metaphor by Anonymous Coward · · Score: 0

    Fly population up because of the increased availability of feces.

  50. the real reason by GweeDo · · Score: 1

    1) Build vunerable OS+apps
    2) Sell PC (MS makes money of Windows being pre-installed) PROFIT!
    3) Get machine infected with spyware+adware
    4) Piss customer off to the point of buying a new one
    5) Sell NEW PC to fix problem-PROFIT AGIAN!
    Return to step 3, repeat...become freaking rich.

    See...we missed the boat...MS has it down, and the average user doesn't even blame MS for having to buy their new PC.

  51. How make the OS market fair... by Afecks · · Score: 1

    We need a law that prevents any operating system from coming preinstalled on a new computer. Then Joe Sixpack will be forced to stand in Walmart and pick out a new OS for his $300 emachines computer that he bought solely for the purpose of obtaining free porn and visiting the WWE website.

    This will force him to choose an operating system based on price and features instead of getting whatever OS forced its way down the throat of the OEM. He'll pick up the box, look at the pictures, look at the price. When you know nothing about computers and are trying to be as cheap as possible, a bargain $8.95 KDE desktop looks pretty slick compared to XP w/SP2 for $198.00. (holy fuck I didn't know walmart was so expensive!)

    1. Re:How make the OS market fair... by Anonymous Coward · · Score: 0

      I'm as much in favor of GNU/Linux and Free Software crushing Windows into obvlivion as you are, but I think it can handle that just fine on its own. The last thing we need is another law telling us how computers should operate. It is *not* the government's or anyone else's job to "force" anyone to choose an operating system.

    2. Re:How make the OS market fair... by tomstdenis · · Score: 1

      Problem is timing.

      Take that suggestion and a time machine and go implement it in 1985.

      Tom

      --
      Someday, I'll have a real sig.
    3. Re:How make the OS market fair... by Tominva1045 · · Score: 1



      Joe Sixpack can't spell "KDE Desktop" and doesn't have the time, desire, or wherewithall to read OS boxes to see that one has a 64 bit instruction set whilst the other has a 128 bit instruction set.

      Here's to you, Joe Sixpack - Mr. just want a computer out of the box so I can get on the net. We luv ya.

      --
      Cogito Ergo Sum
    4. Re:How make the OS market fair... by VoidWraith · · Score: 1

      Except sometimes it works backwards. When a consumer sees a low price, he's more likely to think the product is low-quality.

    5. Re:How make the OS market fair... by GPFCharlie · · Score: 1
      This comment is so stupid I don't even know where to begin. If you think the fact that MSFT OS is pre-installed is what is preventing people from installing other OS on their desktops, you have no clear how to sell/market a product.

      Insert Alternate Reality here
      Joe FatBoy is looking for a meal to eat for dinner. Since he is forbidden from law from purchasing a fully assembled, already cooked meal at his local restaurant, he is instead forced to select the raw materials from the aisle, based on perceived quality and price, and then assemble said ingredients into a fully functional "meal" that he can then use, rather than taking the ready-to-eat pre-cooked, pre-assembled meal that used to be available until outlawed in the name of "competition".

      --
      Somedays it's just not worth chewing through the restraints...
    6. Re:How make the OS market fair... by Anonymous Coward · · Score: 0

      "...a bargain $8.95 KDE desktop looks pretty slick compared to XP w/SP2 for $198.00. (holy fuck I didn't know walmart was so expensive!)"

      The Walmart price for XP w/SP2 will drop to $19.98 only after (a) MSFT lowers their prices significantly, or (2) Walmart starts buying and distributing the Chinese-originated WinXP.

      The first action would only happen in some alternate (string theory) universe, while the second action only needs the same level of non-enforcement of copyright laws that the government already exhibits with laws about employers hiring illegal aliens.

  52. Sometimes... by MaxPowerDJ · · Score: 1

    I get too tired of people asking me how to make their computers faster. So:

    1. people dont get an answer
    2. people throw away their PC's
    3. I get their "broken" PC's
    4. Install Linux on them
    5. Profit!

    --
    --MaxPowerDJ
  53. Genius and the bull market by jfengel · · Score: 2, Informative

    In the tech market, P/E is not an entirely appropriate measure. What you're really hoping for is future earnings, and tech requires a high start-up cost but returns recurring profits. (Which is why companies so jealously guard their IP, to bring up another Slashdot flamewar.)

    The trick to getting rich on the Street is to see technologies that have a high P/E (or, more often, negative or infinite P/E because they have no earnings or losses) but will "win" eventually. A nose for good technology and a strong stomach for loss are required.

    That said, it doesn't apply to Microsoft, whose earnings can be roughly tracked; you know that they're never to expand by a factor of 1,000 again. That's why their P/E is a comparatively reasonable 25, and their numbers go more like a blue-chip than real high-tech.

    It also doesn't apply to stocks that have already been bid up by speculators who don't really know the value of what they're buying, which was pretty much all of them during the dot-com boom.

    There's a hell of a lot more going on than this (like when you buy a share of MSFT you're also buying $3.48 in cash). I'll cease to bore you with any more details; usually this is as far as I go and beyond that I just play my instincts. Additional numbers can make more fine-grained analysis but they tend to get into the "damned lies and statistics" category.

    So for myself I count those rough numbers, my instinct for a products that don't suck, and the rising tide that lifts all ships. I've done pretty well, but never confuse genius for a bull market.

    One last thing: there is a difference between earnings and dividends. Dividends end up in your pocket; earnings are invested in the company. But it's your money either way, so you don't lose much by not getting dividends. When a dividend is issued, the share price usually goes down to compensate. If you want your money in cash, you just sell your stock and get your cash from the next guy. But it's not a problem that tech companies don't issue dividends; you can think of it as automatically reinvesting your dividends in R&D for new products.

  54. Oops they did it again.. by Tominva1045 · · Score: 1



    Perhaps if Microsoft-hating script kiddies didn't push so many ugly browser-helper objects and other malware then innocent, completely non-technical users such as most grannies, lawyers, doctors, artists, poets, etc. wouldn't throw their hands up and just buy another machine?

    Of course there is always the C drive fun of the original recorvery cd process.

    Thank you Mr. Bill for Visual Studio .Net, SQL Server, and the ever so easy to use Windows Update website that helps us thwart the misguided, disgruntled underbelly of the digital world.

    Since I've learned how to max out my browser settings I haven't had a care in the world. Life is guuuuuuud.

    --
    Cogito Ergo Sum
  55. Sucks to be Microsoft by Reality+Master+101 · · Score: 1
    In other news, Apple (and its fans) continue to insist there is no money in computer software, and the big $$$ are made in the computer hardware market.

    (note that all of Apple's recent growth has been in consumer electronics, not computers, before jerking knee).

    --
    Sometimes it's best to just let stupid people be stupid.
    1. Re:Sucks to be Microsoft by Bassman59 · · Score: 1
      "In other news, Apple (and its fans) continue to insist there is no money in computer software, and the big $$$ are made in the computer hardware market."

      Consider that MS gets a chunk of change for each PC that ships with pre-installed Windows (even if Windows will be wiped and replaced with Linux or *BSD or whatever).

      Lots of PCs sold == Lots of royalties for MS.

  56. MS Office looks like it could be in danger by Sara+Chan · · Score: 1
    Annual profits for MS Office increased from $10.653 billion to $11.013 billion, i.e. 3%. That's hardly a strong increase. (Moreover, almost all the increase is due to Japan. If Japan is excluded, revenue growth was virtually flat.)

    Profits on MS Office increased by 7%, but that is because R&D expenses are down. This means MS Office isn't going to get substantially improved--which we already pretty much knew.

    If MS Office is standing still, then it's going to be a lot easier for OpenOffice to catch up with it. Indeed, very soon, OpenOffice will release version 2.0, a major upgrade that has even better compatibility with MS Office.

    All this suggests that in the medium term, MS Office revenues could be in for a hard time.

    Note: all data is from http://www.microsoft.com/msft/earnings/FY05/earn_r el_q4_05.mspx.

  57. Typical Mac fanatic... by MSFanBoi · · Score: 1

    Did you bother to look at the numbers? If the 75% is such a big deal, and the 8% not so hot, doesn't that make the Mac platform at it's meager 2.5% or so of the computer market even worth typing about, let alone rate a mention?

    1. Re:Typical Mac fanatic... by intmainvoid · · Score: 1
      If the 75% is such a big deal, and the 8% not so hot,

      8% isn't that hot. You could probably do that just from expansion of the market overall without making any real gains. Increasing revenues by 75% though, is definitely "hot".

      Typical Mac fanatic... - and you username is MSFanBoi?

  58. Re:Now if we could just get Windows unbundled from by Anonymous Coward · · Score: 0

    I'd like to say "Hasta la Vista" to the MS Windows Monopoly!

    Introducing Windows Vista

  59. Close by tacokill · · Score: 1

    "It's about meeting and exceeding expectations, not just posting a profit."

    Close, but not quite. It's about the investors next best alternative. If MSFT makes less money than Company B, then I buy Company B, all other things being the same.

    Your statement seems to imply that expectations drive everything. And they do -- but that's only because investors are constantly comparing their current investments with the next best alternative.

    You are dead on about one thing: Wall Street IS a cruel mistress.

  60. MS's biggest competitor is itself... by WoTG · · Score: 1

    MS's growth rate can only go down from here. They had a good run, but the market has largely matured. Look around, a lot of businesses are quite happy with Windows 2000 (server and clients) and Office 2000. Those bits of code are 5 years old!

    Apparently, all people wanted was an operating system that didn't crash if you looked at it funny and some productivity apps to match.

    If I had the guts I would short the stock...

    1. Re:MS's biggest competitor is itself... by Bob+Uhl · · Score: 1
      If I had the guts I would short the stock...

      Given the expense of shorting a stock, it's not generally a very good idea even if one know that said stock will drop over the long haul. Pity, that, 'cause I'd short the hell out of both GOOG and MSFT.

  61. Where do they get this stuff...? by PhoenixPath · · Score: 1
    I mean, really...

    Thank you, Cap't Obvious. None of us would have ever guessed.

  62. Yeah... right... by plopez · · Score: 1

    Is that before or after they cooked the books for Wall Street? For example, did they book the free software they gave to IBM as 'sales'? Manipulating the books is more the norm than the exception which is why I only invest in stock that pays dividends, since to do so you have to have real cash on hand.

    Which also is why President Jimmy Carter wanted to lift the dividend tax. He thought it might reduce the flim-flam with the corporate books.

    We'll check their cash position in a year or so and see if they are actually making or losing money.

    --
    putting the 'B' in LGBTQ+
  63. Now wait a minute... by Anonymous Coward · · Score: 0

    Redundant i could maybe understand, although there was no similar comment when I typed it. But troll?! Why? How?

  64. Meanwhile Joe Developer.. by Anonymous Coward · · Score: 0

    ..nearly has a seizure when he discovers that the commercial development licence for KDE is $3300 for one platform. (You're much better off using Gnome based Linux distros and doing development via cross-platform APIs like wxWidgets).

    Because, you see, the development cost is $0 for using the Windows API (link to the Windows SDK download) and $0 for Visual C++ (link to the command-line compiler).

    And for the cost of one KDE development licence you could buy 22 OEM copies of Windows XP Pro at $149., or 35 copies of Visual C++ .NET 2003 at $95 if you wanted an IDE to develop in (although personally I'd go with Eclipse and MingW32).

    Who's expensive now?

  65. are you working for ... by vlad_petric · · Score: 1

    RIAA ? Your logic is very similar to theirs (when they compute their losses due to piracy).

    --

    The Raven

  66. Their new slogan by Anonymous Coward · · Score: 0

    "Your money inspires us to create broken software that helps us reach it."

    On a totally unrelated note, THERE IS A BUG in the human-confirmation thingy at the bottom. If you try to submit a message with the wrong text, it won't accept it on the next try even if you correct it. So, quit trying to blame it on firewalls and fix it!

  67. Re:Now if we could just get Windows unbundled from by mrRay720 · · Score: 1

    That is just never going to work.

    You'd seriously expect people to be able to, never mind want to, install their own OS, gather drivers, etc???

    That would work for you, I, and other similar minded people, but the other 99% of the world wouldn't want to, and probably 75% of them just plain couldn't.

  68. Healty demand by SEWilco · · Score: 1

    Is it "healthy demand" when people are buying PCs to escape from identical machines which are terminally ill?

  69. The other side by jonesy16 · · Score: 1

    The problem with 99% of the replies to a Microsoft article is the line "MS sells a crappy OS". However, there is little evidence to support whether or not linux would be any more or less long lived if it was the dominant desktop OS. You can blame Microsoft for BSOD's, of which there have been very few in the last couple of years (RedHat Enterprise has crashed on me just as often). But don't jump all over Microsoft's case just because you come onto slashdot and spread your hatred to the point that someone with a lot of free time decides to act out their hatred through malicious scripts, viruses, etc.

    The hatred that is spread against Microsoft only fuels the need for antivirus programs, anti-spyware programs, etc. Why not get upset with the people that have such a hatred for humanity and productivity that they spend all their time trying to mess up good natured people's computers, or bring down the root DNS servers of the world. Who does that? Why?

    Furthermore, if computers were sold with the requirement that they came OS free, do you really expect your grandparents to have the slightest clue what OS they NEED? And even better, do you expect them to know how to set it up? I'm sure if you're making comments about this you've gone through an install of Windows and Linux, neither one is dummy proof and honestly the SP2 install of Windows XP is far less complicated than any Linux distro I've seen to date.

    Lastly, to the turd that claims that people are moronic for not building their own systems, try watching the prices at dell and price out what the difference actually is. Especially when they have their weekly $750 off coupons.

  70. useless metric by Anonymous Coward · · Score: 0

    what a useless way to measure Microsoft performance today. We buy hundreds and hundreds of PCs, reformat them and install Linux before windoz is ever booted. Other M$ applications never even get on the machines. It says nothing about M$ products or utility and only shows they are a proficient tax collector.

  71. That chart includes the dotcom bubble by cyberformer · · Score: 1

    I have no idea whether MS is a buy or not, but nearly every computer-related company is down from the height of the bubble. MS isn't down by as much, because it's still quite good at ripping people off.

    The relatively flat chart since the crash is likely a result of creative accounting: MS is very good at bringing forward or deferring revenue so that profits come very close to forecasts. It doesn't surprise Wall Street with higher or lower figures that would make its stock more volatile.

  72. A huge chunk of those earnings came from tax break by Anonymous Coward · · Score: 0

    ... earnings were 34 cents per share... boosted by a tax benefit that amounted to nine cents per share...

    http://news.com.com/Tax+break+boosts+Microsoft+ear nings/2100-1014_3-5798650.html?tag=nl

  73. Microsoft thrives on mediocrity. by Richard+Steiner · · Score: 1

    Isn't that Microsoft's goal -- to ensure that cookie cutter desktop software solutions tailored for "the average PC user" are ubiquitous?

    The people who seem the most unhappy with Microsoft solutions are the technically sophisticated users and those users who have specialized needs.

    Why is that, exactly?

    Maybe bland production-line shrinkwrapped software solutions really aren't the best fit for everyone?

    --
    Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
    The Theorem Theorem: If If, Then Then.
  74. are you smoking ... by Baloo+Ursidae · · Score: 1

    crack? Your non-sequitur really gives it away.

    --
    Help us build a better map!