Microsoft's fiscal year 2009 just came to a close, and the new milestones for the company aren't too boast worthy. Year-over-year, the company saw a 3.2 percent decline in sales, its first drop in the company's history -- guess that
third quarter report was a pretty good indication of things to come. Net profit, too, fell 17 percent to $14.57 billion. Looking at just the fourth quarter, sales fell 17 percent to $13.1 billion, and profits saw a pretty massive 29 percent drop, to $3.05 billion. Attributing to the decline were legal charges and severance claims from laid off employees, a referral of revenue from the Windows 7 Upgrade program, and of course overall drop in PC and server sales across the industry. So far the stock market has acted as you'd expect, and shares have dropped a notable eight percent. Despite all this gloom, let's not forget that the boys in Redmond are still pulling a profit -- and hey, cheer up Steve, you've got one
helluva bright light for fiscal 2010.
posted Jul 23rd 2009 6:12PM
This will not continue through the rest of the year.... 7 FTW!
Why not? How many millions of copies of win 7 do you think they can sell in the fiscal year? And most of those will be no net win, as they will lose a vista sale for every win 7 they sell.
No it will pick back up and so will the stock with the launch of 7 and when the economy returns. Nothing like a little stock sales price extravaganza before the good stuff comes!
I'm sure MS will see some growth in the Fall/Holiday season but I think it will be late next year that will show a return to form. Latest indicators I have received (Forrester) on corporate OS Desktop trends show:
1. Corporate use of Vista is growing. (From 7.3% in July 08 - 11.9$ March 09)
2. Windows XP use declined 4.1% in the same period.
3. OS X use increased from 2.7% in July 08 to 3.6% in March 09
Just my $0.02 worth.
Yes, it will continue with Vista Pro! MS can rename Vista Pro as Windows Zebra or Windows 2020, etc. all they want.
Users aren't stupid and they can see that Vista Pro is not much change from Vista. So why upgrade to Vista Pro in
this economy.
Enjoy OSX Cheetah sp6.
This is a call to Microsoft to raise the bar, or at least move back up to software that is 'good enough'. Falling below that with shit that is clearly broken isn't gonna cut it. Back to the 90's Microsoft. We want your software to hit that 'works really OK' to justify its pricetag.
Developers wont save you now Steve.
Yup, but do PC makers really have another choice, i know that some people seem to rave about Linux but is it a stable alternative. Really? I have been using Windows 7 for a while now and while i do think that it is an improvement i doubt it will be the saviour that Microsoft (Yes without a $) is looking for.
Oh my god, they only made FOURTEEN BILLION in profit for 2009! They are almost bankrupt!
And anyone who bitches about Apple's high margins, perhaps you should look at MS's quarterly statements: (from Google Finance )
Microsoft: 3 months ending 2009-03-31
Total Revenue = 13,648,000,000
Cost of Revenue = - 2,814,000,000
Gross Profit = 10,834,000,000
Thats a freakin 79% gross profit margin!
HAHAHAH! What a joke. Steve Ballmer is freaking screwed up in the head. I wonder how his mental state allowed him to be the CEO of this company anyways. Wow
@qwack
Linux is easily a "stable" alternative, the big question is is it a "usable" alternative for average people. With enough support from hardware manufacturers, the answer is yes. The primary issue with Linux (read Ubuntu) adoption is the fact that consumers are used to Windows and are too lazy to want to learn a new OS.
Don't worry Redmond Horde, Zune HD is coming!!!!
(And retail stores too. Woot!)
P.S. when are they going to boot Ballmer already?
at qwack
they do have a choice linux. im not saying that they should stuff it down the consumers throats but at least put a linux distro as an option when ordering pc's off the computer vendor website. back to the article this isn't as bad as engadget making it seems they still made a PROFIT this year and with windows 7 coming out they'll probably make crap loads of cash off of all the xp users wanting to upgrade to a new stable os.
Windows 7 will be the savior Microsoft is looking for. Anybody who has used it and Vista (and this is coming from someone who liked Vista) knows which operating system they would choose. Don't even mention xp, it was a very good OS but it's time has passed. Anybody who has used it cannot really complain about it, there may be some things you don't like, but there isn't anything about it that the masses dislike as there was with Vista. Not even Apple can put down 7, I'm sure they will make their ads of "more of the same", but then again that can be turned right around at them with snow leopard.
No, Microsoft will not escape the usual complaints of virsues, spyware, etc etc with Windows 7, but then again Microsoft will never escape those complaints. Especially when you have a user base as large as Microsoft does.
I think we are at a point now where most people are aware of the Mac as an alternative to Windows if they were looking for something different. Yet, look what the majority are still choosing to purchase.
@ loosely_coupled:
The problem with Linux is the near-complete lack of a consumer-friendly software library.
I installed a Ubuntu virtual appliance on my Mac (I also run XP and 7 RC on my Mac using VMware). I got it up and running just fine. Then I sat and stared at the screen and thought "Now what?"
Browser? Open Office? ??? It's just not enough. :(
If you're just doing browser-based computing, it's fine for the average consumer. Otherwise, not so much. Linux needs more software, and I don't know how its going to get it.
@ loosely_coupled
Of course Microsoft has a higher gross profit, they're selling software, not hardware (for the most part) Apple is selling hardware along with its software, of course they are going to have higher cost of sales. You would have to compare Apple's profit margins to say, HP's profit margins, to make a proper analysis.
@ Paul
...Really? You're previous arguments atleast had a pinch of knowledge and logic, but this...this is atrocious. Calling most people cheapskates...ok. If your definition of cheapskate is "people who do some research and then buy a computer because it's worth it and not blatantly overpriced", then it works. Otherwise, then no, cheapskate is not the appropriate word here. More like, "level-headed".
And did you not read the argument for why most PCs bought are under $1000? Yes, it is partially because of competition, but it's also because of the fact that PCs under $1000 are more than powerful enough for more people. As for the "Well, your next best competitor is using the same OS, so the only way to compete is through low prices." statement, guess who PCs also compete against? Apple computers.
@Paul
Well whose fault is it that apple only allows their OS on their hardware . They could easily gain a huge market share if allowing other companies to use their OS (easier anyway).
Help me, Obi-Seven Kenobi; you're my only hope.
Ah, but Microsoft does and that what makes them successful in a different way. Pure numbers.
"The problem Microsoft has with XP is that many people might see it as being Good Enough. And as I've stated before, people are cheapskates, so why bother upgrading to Windows 7 if you can save a few dollars? Of course, eventually people will HAVE to upgrade once their computers go bad and their jobs upgrade to the OS. So there is potentially a problem with Windows 7 right out the gate, but it's likely to correct itself through sheer inertia.
The question is, how long will it take?"
The thing is, the same can be said for Leopard. Or the previous version of Linux, or whatever OS. If people find the previous version good enough, why would they change?
Now with XP, that's what happened with Vista, but now the hardware that is running those XP machines is really starting to get old. People didn't like Vista so they made what they had work, people like 7 so they'll be more inclined to upgrade. So there are many potential sales for 7 right there.
Paul, claiming others are cheap skates when you, yourself, are too cheap to get an iPhone is quite telling.
I agree, Snow Leopard will do fine, but only because it is only 30 bucks. If it was normal priced, then I don't see as many people upgrading. Why? Average users don't care about 64-bit and that's the whole basis behind Snow Leopard. There isn't really anything new as far as features, nothing new to the eye = average user (or should I say college students who wanted a macbook) could really care less. You will get your power users who run out right away and upgrade, but the average user could care less. And I really don't see people running out to buy new insanely expensive Macs just to have it come with Snow Leopard when what they have works. Honestly, do you think people running PowerPC would still be running PowerPC after how many years now of Apple no longer using it if what they had didn't work for them?
And is it really that Apple users are not cheapskates or is it that people who buy their computers just have no problem throwing money around? The iPhone didn't hit the masses until it was cheap - yet iPhone users are Apple customers. The iPod did not reach the success it did until a few generations in when the price was lower - yet iPod users are Apple customers.
Paul,
Assuming all Mac users are not cheap is about the most ignorant thing I have ever heard. Also, the point still remains if you don't feel a new OS adds anything you must have why bother to spend any money upgrading.
@Paul A Chapel
I think you are confused. There is a big difference with being frugal and being cheap.
Besides, I am willing to bet more than anything that if Apple makes OSX so that it runs on third party hardware, it'll crash more than any OS available on the market right now, and it STILL won't sell more than Windows.
Get your mouth out of SJ's penis and join the real world.
Well that is surprising!
...
Oh no, not the drop in profits. That was a given and next quarter will be worse.
The surprise is that people still reply to Paul. Quite remarkable really.
All in All Snow Leopard will succeed only because of it's price. People will upgrade their computers, however if it was normal price they wouldn't buy it retail and they wouldn't buy a new Mac because what they had was working for them
Windows 7 will succeed because there are many people who did not upgrade their hardware with Vista but now need/want to. They will get it pre-installed. The power users have most likely already pre-ordered it, but beyond that it won't sell much retail.
OS's hardly ever sell much retail - except this time around Snow Leopard will because that's pretty much the only way most Mac users will upgrade unless they want to finally get off of Power PC.
@ Paul
If people are cheapskates, why did HD-DVD fail? It was far cheaper than Blu-Ray, and as an additional, you might also claim that it was cheaper AND inferior - 2 key points you claim Microsoft's O/S's and PC's are compared to Apple.
Set up a few more strawmen.
Paul,
You are still an idiot. Your own opinion does not speak for every Apple owner so you can't make that assumption. You thrown in statements like "The price of owning a Mac is actually lower if you compute the productivity factors and the fact that Mac last longer than your average PC." which you have no evidence to support and completely just threw in there. When tons of people don't give a crap about productivity. People buy things for different reasons, not just one completely untruthful one.
Okay Paul think whatever you want. I'm sure you know tons about how the world works, living in your mother's basement and all.
"The people who don't give a crap about productivity is about the same percentage of people who are cheap skates."
That is about the most illogical, trolling, no basis or facts to back it up, asking to start flame war comment that I have ever seen, and I have seen many.
"wouldn't they buy the best value for their dollar"
Yes, it's up to them to decide what the best value for their dollar is. Just because they've decided a PC is the best value for their dollar vs a Mac does not make them a cheapskate. It makes them a consumer who is thoughtful of their needs and wants vs cost. Just because a Mac costs more doesn't necessarily make it a premium. Some cars cost more than others yet they are definitely not premium. And trust me, Macs are not the Ferrari's of computers.
Unless of course, you are an "Anything other than Apple Hater". Where have you been this past week, it's been quite pleasant without you here.
MSFT is down 7% after hours. The Street has spoken and Windows Mobile is demised!
JESUS CHRIST PEOPLE, shut the fuck up already. No one is going to change Paul's mind. There's no point in arguing further. I'm so sick of these back-and-forths on every damn article that's tangentially related to Microsoft or Apple or any damn phone.
I never thought I'd say this, but maybe I should just go to Gizmodo so I don't have to scroll past you 12-year-olds stating the same inane comments on nearly every article.
GOD DAMNIT PEOPLE, shut the fuck already. Take your inane back-and-forths somewhere where I don't have to scroll past it every damn article.
Ugh. The commenting system isn't very encouraging either...
Burn in hell.
Hey Paul, Whats shakin bacon?
Paul A. Chapel is actually making some sense now. You guys are just attacking him ad hominem. You're no better than him when you resort to personal attacks.
OK. This company is going down for the count. Punnnnnch to the groin. Ooof. They just took out Steve Ballmer in an stretcher draped with a satin robe with the Apple logo on it. Hahhhhhh! The crowd goes wild. Mighty Microsoft has a glass jaw/groin. Who woulda thunk it?
Apple, the heavyweight champeen of the world with less than 10% market share is dancing around in the ring. Read about it in tomorrow's news' rags.
Hey, how come Steve Ballmer looks like he's grabbing some fat lady's tits?
Yes, iphonerulez. Even though like 100% of the world is using some form of Microsoft software, they will suddenly die despite surviving for about 30 years and Apple, a company whose stuff doesn't really work with most of their computers will rise up and take there place.
As for you, paulachapel, correlation =/= causation.
Drinking and commenting do not mix together well.
But my point still stands. I'm blaming all of you who engage in these stupid arguments, not just Paul. But since Paul seems to be the catalyst to it all, he stands out in particular.
It's just aggravating to see what are basically the same stupid arguments in almost every post, and I'm just disappointed that there are so many commenters on Engadget contributing. The quality of comments on here has seriously declined in the last few months, and it's a bit disheartening.
@Paul
Apple has 91% of the 'revenue' market share (not 'actual' market share) in computers sold at a price above $1000. There's a difference.
iphonerulez seems to have more sense than most of you since I don't believe I've ever once seen him respond to P A C
Looks like he's squeezing a pair of imaginary melons .... and by melons .... i dont mean melons .... i mean ( . Y . )
I prefer this interpretation (from a previous post's comments):
http://images.birdy.nu/images/lightningballmer.jpg
Two melons on two different melon-owners standing approximately 2 feet apart, that is...
Yep, like the Star Wars lightning from the hands effect.. I can imagine Steve saying something like "You will buy Windows 7 or you will DIE!"
I've never seen one set of boobs that far apart. Well, at least none that I liked.
I say it's a single boob squeeze from two different pairs. That Balmer is an animal.