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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."
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.
In other news, the oil industry attributed increases in gas sales to an increase in automobile sales.
!hoD
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
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.
their stock price is way down though: http://www.google.com/search?oi=stock&q=stocks:MSF T&prev=/search%3Fq%3Dmsft%26hl%3Den%26hs%3DbnK%26l r%3D%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-U S:official
8 percent is nice and all, but when Apple's just announced a 75% increase in revenue does it even rate a mention?
Drag n' Drop DVD Recommendations
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.
$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.
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!
Pretty Pictures!
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.
See my Home Theater
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!
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?
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"
Who needs hospitals and edumacation anyway.
Right, that's why the revenue went up.
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!
Something else that might boost MS profits. Free advertisement as three MS-related stories were posted to slashdot within 4 hours.
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.
And replace "should be" with "have been"
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/
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
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.
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.
Parent shouldn't be modded offtopic! In that case, redundant would do. So I'd vote for insightful to compensate for the bad karma.
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
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!
Starsucks
Synchronize your calendar and mobile phone via text messaging.
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
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.
blakespot
-- Heisenberg may have slept here.
iPod Hacks.com
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.
Javascript + Nintendo DSi = DSiCade
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.
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?
How does the first post get modded redundant?
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
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
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."
80% of all statistics are made up on the spot.
Cliff Claven
K.E.G. Party Chairman
Founding Leader of: Koncerned for Egalitarin Governance
Maybe if everyone didn't chuck their computer everytime it got spyware on it, the demand wouldn't be so high!
// Oops wrong site
/ Just sayin'
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
I hear it was 94%...
"Live Free or Die." Don't like it? Then keep out of the USA
Because morons are allowed to moderate.
Kierthos
Mr. Hu is not a ninja.
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.
Unstable Apps: Our Android Apps Don't Suck
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!)
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.
A blog like any other.
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
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 $3.48 in cash). I'll cease to bore you with any more details; usually this is as far as I go and beyond that I just play my instincts. Additional numbers can make more fine-grained analysis but they tend to get into the "damned lies and statistics" category.
So for myself I count those rough numbers, my instinct for a products that don't suck, and the rising tide that lifts all ships. I've done pretty well, but never confuse genius for a bull market.
One last thing: there is a difference between earnings and dividends. Dividends end up in your pocket; earnings are invested in the company. But it's your money either way, so you don't lose much by not getting dividends. When a dividend is issued, the share price usually goes down to compensate. If you want your money in cash, you just sell your stock and get your cash from the next guy. But it's not a problem that tech companies don't issue dividends; you can think of it as automatically reinvesting your dividends in R&D for new products.
except you already defeated your own point. Microsoft is giving people what they want. They're now demanding security, and microsoft is focusing on security. The general public doesn't give a sht if M$ 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.
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
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."
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.
A blog like any other.
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
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
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
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.
(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.
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.
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?
"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.
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...
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?
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
Thank you, Cap't Obvious. None of us would have ever guessed.
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.
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+
RIAA ? Your logic is very similar to theirs (when they compute their losses due to piracy).
The Raven
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.
Is it "healthy demand" when people are buying PCs to escape from identical machines which are terminally ill?
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.
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.
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.
crack? Your non-sequitur really gives it away.
Help us build a better map!
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.
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.