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Computer Demand Boosts MS Profits

Zonk posted more than 9 years ago | from the going-up dept.

Microsoft 181

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."

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Millions of Linux users around the world (0, Offtopic)

DebianDog (472284) | more than 9 years ago | (#13136536)

Really?!?! WTF!

Re:Millions of Linux users around the world (4, Funny)

Leroy_Brown242 (683141) | more than 9 years ago | (#13136587)

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!

Re:Millions of Linux users around the world (3, Insightful)

Alex P Keaton in da (882660) | more than 9 years ago | (#13136857)

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.

Wow, so they're up (1)

GuitarNeophyte (636993) | more than 9 years ago | (#13136653)

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 [webgentry.com] all about ketchup. Go read it!

Re:Wow, so they're up (3, Insightful)

Mistlefoot (636417) | more than 9 years ago | (#13136822)

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.

Speaking of Cynicism... (1)

ZephyrXero (750822) | more than 9 years ago | (#13136866)

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...

Re:Speaking of Cynicism... (1, Funny)

Anonymous Coward | more than 9 years ago | (#13136954)

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

Strive for mediocrity.

Re:Millions of Linux users around the world (1, Interesting)

Anonymous Coward | more than 9 years ago | (#13136834)

How does the first post get modded redundant?

Re:Millions of Linux users around the world (1)

Kierthos (225954) | more than 9 years ago | (#13136961)

Because morons are allowed to moderate.

Kierthos

Yay! (0, Offtopic)

ShaniaTwain (197446) | more than 9 years ago | (#13136539)

..or Boo, depending on your personal preference.

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

Monopoly (-1, Redundant)

dnixon112 (663069) | more than 9 years ago | (#13136542)

Good grief, they just keep adding billions to their coffers, quarter after quarter.

Re:Monopoly (1)

BewireNomali (618969) | more than 9 years ago | (#13136592)

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.

The reason for MS's performance (2, Funny)

Anonymous Coward | more than 9 years ago | (#13136543)

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.

From the desk of captain obvious ... (5, Funny)

nospmiS remoH (714998) | more than 9 years ago | (#13136544)

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

Mods on crack again! (1)

Spy der Mann (805235) | more than 9 years ago | (#13136714)

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

Re:Mods on crack again! (3, Insightful)

j-tull (201124) | more than 9 years ago | (#13136817)

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)

Thats why (1)

RompeRatones (898219) | more than 9 years ago | (#13136548)

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

Re:Thats why (3, Informative)

eln (21727) | more than 9 years ago | (#13136597)

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!

Re:Thats why (1)

lukewarmfusion (726141) | more than 9 years ago | (#13136783)

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.

Re:Thats why (2, Informative)

AKAImBatman (238306) | more than 9 years ago | (#13136794)

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 [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. :-)

Re:Thats why (1)

kicken18 (839808) | more than 9 years ago | (#13136947)

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

Of course (-1, Flamebait)

doublem (118724) | more than 9 years ago | (#13136550)

98% of all installs are pirated.

Re:Of course (1)

jxyama (821091) | more than 9 years ago | (#13136623)

Right, that's why the revenue went up.

Re:Of course (1)

doublem (118724) | more than 9 years ago | (#13136675)

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.

Re:Of course (1)

hcob$ (766699) | more than 9 years ago | (#13136873)

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

Re:Of course (1)

doublem (118724) | more than 9 years ago | (#13136960)

I hear it was 94%...

In other news... (-1, Troll)

Sensible Clod (771142) | more than 9 years ago | (#13136552)

studies show that the more money people make, the more people spend.

Tell us something we don't know about the M$ tax, like how much is spent on bribes, ok?

Unfair competition (-1, Troll)

Anonymous Coward | more than 9 years ago | (#13136556)

Cue hordes of slashb0ts complaining about how unfair it is that MS Office comes bundled with computers. Negotiate your own bundle deals, you hippies! Making sweet deals is not a crime or a monopoly.

Meanwhile.. (4, Interesting)

BlackCobra43 (596714) | more than 9 years ago | (#13136559)

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

P/E = 25 (0)

Anonymous Coward | more than 9 years ago | (#13136632)

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

Re:Meanwhile.. (1, Insightful)

Anonymous Coward | more than 9 years ago | (#13136706)

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.

Re:Meanwhile.. (2, Informative)

wwwojtek (246402) | more than 9 years ago | (#13136894)

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

Re:Meanwhile.. (2, Informative)

coflow (519578) | more than 9 years ago | (#13136937)

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.

Re:Meanwhile.. (1)

CaymanIslandCarpedie (868408) | more than 9 years ago | (#13136952)

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 ;-)

Re:Meanwhile.. (1)

krbvroc1 (725200) | more than 9 years ago | (#13136967)

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

I'm not important enough... (1, Interesting)

spammeister (586331) | more than 9 years ago | (#13136566)

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.

Re:I'm not important enough... (1)

bersl2 (689221) | more than 9 years ago | (#13137024)

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)

stock price.... (3, Informative)

joelanders (743036) | more than 9 years ago | (#13136569)

Re:stock price.... (4, Informative)

ProfaneBaby (821276) | more than 9 years ago | (#13136677)

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.

Re:stock price.... (1)

Apreche (239272) | more than 9 years ago | (#13136912)

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.

Re:stock price.... (1)

Monkelectric (546685) | more than 9 years ago | (#13136951)

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.

not even close! (2, Interesting)

intmainvoid (109559) | more than 9 years ago | (#13136572)

an 8% increase


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

Re:not even close! (1)

doublem (118724) | more than 9 years ago | (#13136603)

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.

Re:not even close! (2, Interesting)

Golias (176380) | more than 9 years ago | (#13136901)

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.

Re:not even close! (0)

Anonymous Coward | more than 9 years ago | (#13136915)

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?

Re:not even close! (1)

doublem (118724) | more than 9 years ago | (#13137001)

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

Re:not even close! (1)

rhyno46 (654622) | more than 9 years ago | (#13136665)

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

Percentage Shhmercentage (4, Informative)

ShaniaTwain (197446) | more than 9 years ago | (#13136726)

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!

Re:Percentage Shhmercentage (5, Informative)

Kiryat Malachi (177258) | more than 9 years ago | (#13136855)

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.

Re:Percentage Shhmercentage (1)

Scarblac (122480) | more than 9 years ago | (#13136899)

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.

Re:Percentage Shhmercentage (1)

EMH_Mark3 (305983) | more than 9 years ago | (#13136991)

word.

Re:not even close! (1)

BooRolla (824295) | more than 9 years ago | (#13136759)

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

Yeah, but Apple is like 1% of the market. (0)

Anonymous Coward | more than 9 years ago | (#13136840)

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.

Rewarded (0, Redundant)

GabboFlabbo (595073) | more than 9 years ago | (#13136573)

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"

Re:Rewarded (1)

Antimatter3009 (886953) | more than 9 years ago | (#13136668)

And replace "should be" with "have been"

Whoopie..... (1)

Capt James McCarthy (860294) | more than 9 years ago | (#13136574)

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.

Compared to North Carolina (4, Funny)

pastpolls (585509) | more than 9 years ago | (#13136577)

$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.

Re:Compared to North Carolina (1)

qbert980 (891053) | more than 9 years ago | (#13136686)

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

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

Re:Compared to North Carolina (2, Funny)

pastpolls (585509) | more than 9 years ago | (#13136983)

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.

Outsourcing (3, Interesting)

vlad_petric (94134) | more than 9 years ago | (#13136717)

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.

Re:Compared to North Carolina (0)

Anonymous Coward | more than 9 years ago | (#13136972)

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

Analysis (-1, Redundant)

Anonymous Coward | more than 9 years ago | (#13136581)

No shit, Sherlock.

Thanks to Dell et al (0)

Anonymous Coward | more than 9 years ago | (#13136584)

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.

MS Business Plan (5, Funny)

Innova (1669) | more than 9 years ago | (#13136594)

  1. Design operating system with poor security.
  2. People throw away old computers with malware. [slashdot.org]
  3. Sell more licenses to operating system.
  4. Profit!!!

Now if we could just get Windows unbundled from pc (0)

Anonymous Coward | more than 9 years ago | (#13136598)

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!

Microsoft has won. (1)

Renraku (518261) | more than 9 years ago | (#13136599)

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.

Re:Microsoft has won. (1)

NineNine (235196) | more than 9 years ago | (#13136648)

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?

The reason is obvious! (1)

ballstothat (893605) | more than 9 years ago | (#13136605)

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 [nytimes.com]

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

And just look how little tax they pay (2, Funny)

Anonymous Coward | more than 9 years ago | (#13136615)

Who needs hospitals and edumacation anyway.

coincidence? (3, Insightful)

kwoff (516741) | more than 9 years ago | (#13136656)

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

Re:coincidence? (1)

qbert980 (891053) | more than 9 years ago | (#13136755)

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

Awesome! (1)

Tibor the Hun (143056) | more than 9 years ago | (#13136658)

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.

Re:Awesome! (0)

Anonymous Coward | more than 9 years ago | (#13136765)

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

Re:Awesome! (1)

gatkinso (15975) | more than 9 years ago | (#13136854)

I also wonder about this....

Re:Awesome! (0)

Anonymous Coward | more than 9 years ago | (#13137007)

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.

Microsoft growth is actually slowing down (0)

Anonymous Coward | more than 9 years ago | (#13136664)

Our revenue growth rate was 10% in fiscal 2001, 12% in fiscal 2002, and 13% in fiscal 2003 [microsoft.com]

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.

Revenue Growth Will Turn Negative Soon (0, Interesting)

Anonymous Coward | more than 9 years ago | (#13136667)

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.

Sure glad... (0)

Anonymous Coward | more than 9 years ago | (#13136669)

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.

It is not all bad news... (1)

JimStoner (93831) | more than 9 years ago | (#13136673)

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/ [apress.com]

Argh... (2, Funny)

CarlinWithers (861335) | more than 9 years ago | (#13136678)

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.

What's Really News is... (0)

Anonymous Coward | more than 9 years ago | (#13136691)

Why did the PC sales go up?

mod do3n (-1, Offtopic)

Anonymous Coward | more than 9 years ago | (#13136709)

Of BSD/OS. A

What will crush the market (1)

Henry V .009 (518000) | more than 9 years ago | (#13136710)

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.

The power of pre-installs (0)

Anonymous Coward | more than 9 years ago | (#13136721)

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.

Re:The power of pre-installs (0)

Anonymous Coward | more than 9 years ago | (#13137034)

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....

Inaccurate... (1)

mcho (878145) | more than 9 years ago | (#13136737)

reported the following: [informationweek.com]
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."

Farewell (-1)

Anonymous Coward | more than 9 years ago | (#13136748)

I, for one welcome our new Overlords from Redmond.

Boycott Dell, HP, Gateway (0)

Anonymous Coward | more than 9 years ago | (#13136751)


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.

No shit? (1)

Kamiza Ikioi (893310) | more than 9 years ago | (#13136753)

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!

Re:No shit? (1)

kicken18 (839808) | more than 9 years ago | (#13136910)

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

This just in... (5, Funny)

blakespot (213991) | more than 9 years ago | (#13136791)

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

And what is so surprising about it? (1)

ratta (760424) | more than 9 years ago | (#13136806)

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.

Xbox360? (1)

rkraken (250934) | more than 9 years ago | (#13136814)

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?

Re:Xbox360? (0)

Anonymous Coward | more than 9 years ago | (#13136942)

"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...

Your help please. (-1, Troll)

Anonymous Coward | more than 9 years ago | (#13136825)

I am a visitor from the planet Offtopica, and I require Offtopic moderations to survive. Please help me if you have mod points.

40 Billion dollars? (1)

bogie (31020) | more than 9 years ago | (#13136853)

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?

Maybe (1)

kevin_conaway (585204) | more than 9 years ago | (#13136923)

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

A better metaphor (0)

Anonymous Coward | more than 9 years ago | (#13136973)

Fly population up because of the increased availability of feces.

the real reason (1)

GweeDo (127172) | more than 9 years ago | (#13137000)

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.

How make the OS market fair... (1)

Afecks (899057) | more than 9 years ago | (#13137002)

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. [walmart.com] (holy fuck I didn't know walmart was so expensive!)
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