Microsoft sees first annual sales decline in its history for fiscal 2009
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.























Well no sh*t, I thought we were in a recession?
Developers, Developers, Developers? EPIC FAIL!
This is going to become serious if it dominoes. Fortunately they have the global economy to blame. It's not any better for most other companies. Even people coding for Linux might be unable to spend as much time on unfunded projects.
Did anyone mention they still have FIFTY FIVE BILLION FREAKING DOLLARS IN CASH on hand???
What good is that? They're keeping that cash to buy out Apple. They can't touch it.
Not 55M anymore - currently at $21B plus whatever they managed to retain this quarter.
Apple is sitting on $32B right now, which makes them the second most cash rich company behind Cisco.
Try half that...
What JW said...
Of course. Everyone knows something better is coming and is waiting for it. I built a computer in April, and I certainly didn't buy Vista knowing that I would be upgrading to 7 by the end of the year.
You're half correct. :) People aren't going to upgrade because there is no reason to upgrade to Vista Pro. That's the real reason. :)
And what's the reason to upgrade to Leopard SP1. Or is it Cheetah SP6.
@Rask: Hmmm, I don't know, pick a reason:
- It's only $29
- Native Exchange support (Windows users have to pay EXTRA for that! HA!)
- Real 64-bit OS that still runs all your 32-bit apps without jumping through hoops (Windows users have to choose between 32-bit and 64-bit versions, each with their own limitations, pros and cons)
- OpenCL, use your spare GPU cycles to perform regular computing tasks (=more speed)
- Much smaller, 6GB less hard disk space needed (When has THAT ever happened in a Windows update?)
- A LOT faster across the board in pretty much every task (Again, when has THAT ever happened in a Windows update?)
- Automatic updates for printer drivers
- Tons of performance and reliability improvements (which you normally have to wait for a Windows SP1 for)
- Smart PDF text selection (After all these years, Adobe still hasn't figured out how to let you select multi-column text in Adobe Reader)
Hmmm, just realized that every single reason to get Snow Leopard is actually pretty much an exclusive for OS X. Windows 7 won't really have ANY of those benefits. What will it have? Oh yeah, it'll suck a little less than Vista. Super fantastic!
- It's only $29
If you own Leopard already. If not it's the normal 129$..
- Native Exchange support (Windows users have to pay EXTRA for that! HA!)
Have you seen Entourage or the mess that Safari renders OWA in? Offices that have an exchange server to begin with are willing to buy Outlook. Everyone else doesn't really need Outlook now do they.
- Real 64-bit OS that still runs all your 32-bit apps without jumping through hoops (Windows users have to choose between 32-bit and 64-bit versions, each with their own limitations, pros and cons)
WTH are you talking about? I'm running a 64 bit copy of Windows 7. Windows has been doing 64bit since XP. This isn't forcing a choice. It's offering OPTIONS..
- OpenCL, use your spare GPU cycles to perform regular computing tasks (=more speed)
This I admit is cool.
- Much smaller, 6GB less hard disk space needed (When has THAT ever happened in a Windows update?)
Yeah.. What people aren't saying though is that this is done by dumping support for ALL PowerPC's. And seriously, the Mac Mini comes with 120GB built in...
- A LOT faster across the board in pretty much every task (Again, when has THAT ever happened in a Windows update?)
I gather you haven't tried to Bootcamp Windows 7 RC1. It's Vista, tightened and done right.
- Automatic updates for printer drivers
Every system I installed 7 on grabbed device drivers from Windows Update and worked properly right out of a fresh install.
- Tons of performance and reliability improvements (which you normally have to wait for a Windows SP1 for)
Vista needed those cause they had changed so much of the architecture out of the box before SP1. 7 hasn't veen an issue for anything I've thrown at it.
- Smart PDF text selection (After all these years, Adobe still hasn't figured out how to let you select multi-column text in Adobe Reader)
Copy and paste out of a PDF...wooo..
You got more? I could go at this all night.
- It's only $29
Cool. But that's only for the leopard to SL upgrade. What about Tiger? My friend has an old MB (still Intel though) so he can use SL, but he's going to have to pay more.
- Native Exchange support (Windows users have to pay EXTRA for that! HA!)
Yeah this is kinda stupid. At least give Outlook Express some kind of gimpy exchange support. Then again you won't have exchange unless you're at a business, meaning you probably are running MS Office anyhow...
If you were a Mac user at a business that also had Windows machines, you probably have to use MS Office as well in order to be interoperable. When will you have an exchange server in your home? I suppose you could use exchange from work, but I know my work won't let you. You'd have to be VPN'd in. OR you could just use IMAP, which is allowable from offsite.
- Real 64-bit OS that still runs all your 32-bit apps without jumping through hoops (Windows users have to choose between 32-bit and 64-bit versions, each with their own limitations, pros and cons)
I didn't realize I had to jump through hoops in Vista x64. I can install a 64 bit app just fine, but if I install a 32 bit (for whatever reason there's not a .msi for x64) it goes in Program Files (x86). All are viewable from my start menu, and I haven't had any compatibility issues.
- OpenCL, use your spare GPU cycles to perform regular computing tasks (=more speed)
I have a Nvidia Graphics card, I can use CUDA. The point is moot.
- Much smaller, 6GB less hard disk space needed (When has THAT ever happened in a Windows update?)
When has this happened in a previous Apple release? This is a one time deal. You lost PPC support. Windows still has legacy support (for better or for worse).
- A LOT faster across the board in pretty much every task (Again, when has THAT ever happened in a Windows update?)
Actually, SP2 was faster than SP1, and SP3 made Windows XP faster than SP2.
Granted, if the slideshow is to be believed (I don't believe any PR show), it's a whole lot faster.
- Automatic updates for printer drivers
Windows has a ton of built in drivers, as does Linux. Not sure auto update is required for printers. It's not like graphics drivers. If you have issues with a printer driver you update then. Not every time a marginal update comes. If it ain't broke, don't fix it.
- Tons of performance and reliability improvements (which you normally have to wait for a Windows SP1 for)
Sorry, I forgot patch tuesday didn't increase the reliability of my system by making it more secure. Service Packs are just a way to roll a lot of bug fixes into one and improve functionality. You guys get 0.0.x increments that do the same thing as service packs.
- Smart PDF text selection (After all these years, Adobe still hasn't figured out how to let you select multi-column text in Adobe Reader)
Adobe just plain sucks. But I forgot why this was a prerequisite for another software company to make their own version. If I need Adobe's features I'll open adobe. Otherwise I'll just use Foxit or one of the other dozen free PDF readers. Why would I pay for PDF functionality in an OS when there's other companies that are competing (You know it costs money to develop fun little things like that).
Many people aware Windows Mobile is dead so this shouldn't surprise too many people. It will only get worse as mobile computing becomes essential!
HA! Everyone climbed all over me a few weeks ago for saying that MS must be scrambling to figure out how to actually COMPETE... I don't care if Apple only has 7% of the market share, and Linux distros only have 1%... The heat is on and the bigger they are...
... makes it easier to stomp the others.
@EB: Once upon a time, but lately, Microsoft's attempts at stomping have been met with uncontrollable giggling from the competition. Yes, competition is back. It's been safe for competitors to come out of hiding for quite some time now. The once 800-lb gorilla is now a 950-lb koala bear with diabetes.
@madgunde It's been safe for competitors to come out of hiding for quite some time now.
I am really hoping the competitors will do that. I believe Microsoft, Apple, and Linux distribution makers are more than capable of producing OS's that are much better than the ones out now. I really hope the consumers can benefit from possible innovations produced when the competition heats up and they try to stomp each other.
JESUS CHRIST PEOPLE, shut up already. No one is going to change Paul's mind. There's no point in arguing further. I'm so sick of seeing 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.
Interesting dinosaur pose. I just love those manky dino hands.
Nobody can fill Bill's shoes same with Steve Jobs.
Meanwhile apple is reporting record sales despite bad economy. Good, i hope apple crushes ms, they make much better products that actually work without crashing, viruses or red ring of death. sounds like a horror movie, red ring of death!!!!!
THRILLER!!
The fall of Microsoft will start with the downfall of WinMo and it has already started. They just can't compete; they have no hope going against Palm, Apple, Google and Nokia in the mobile arena.
Next, the jump will happen on low-end portables. Manufacturers count every penny when fabricating a netbook and a Windaz license doesn't cut it any more. Smartbooks should eventually solve the problem by running variants of Android or Chrome OS.
As we know now, Apple dominates the premium end, so MS is being squeezed out on both ends.
Must be nice living purely in the consumer space and being completely oblivious to Microsoft's strongest asset, the business space.
You do know that there's a bit of Microsoft in every single iPhone with ActiveSync and that Apple is paying MS for that.
ActiveSync is also a part of Snow Leopard..
Heh, everyone knows Apple is using ActiveSync on iPhones and Snow Leopard. It's right on Apple's web page.
However, "Apple is also building its own Push Notification Server for messaging services in both the iPhone and Mac OS X Snow Leopard Server using open, interoperable standards:"
http://www.roughlydrafted.com/2009/02/11/iphone-push-notification-server-tied-to-snow-leopard-server/
In the long run Apple will throw away Microsoft's ActiveSync like yesterday's news.
@Rask
Yeah, I'm sure Microsoft is making a killing on ActiveSync licenses. As for the Apple and the consumer space. Snow Leopard has native Exchange support (as you've already pointed out). So, companies doing their math will find that the price difference has just shrunk between PCs and Macs for corporate use, since they HAVE to buy MS Office (or at least Outlook) with the PC to get connected to the Exchange server, to the tune of hundreds of dollars per PC over it's life. A Mac running Snow Leopard and OpenOffice will let them get all their work done at no extra charge.
I just heard today from a colleague that Delta Hotels (a successful chain of 44 hotels that cater to business class clients in Canada) have completely dumped MS Office and Exchange in favor of Google Apps. He just got hired there and they asked him whether he wanted a PC or Mac, his choice. The IT costs savings must be freaking enormous! Microsoft has a problem when the added expense of buying into their solution brings nothing but more problems, security headaches and IT expense. Where's the value proposition?
Ahhh the cloud.. You're just fine until stuff like the following happens..
http://www.techcrunch.com/2008/08/11/systemwide-gmail-outage/
Seems to me like the more parts of your business you migrate out of your control, the more of your business are vulnerable to other people's inpetitude.
http://www.eweek.com/c/a/Messaging-and-Collaboration/Google-Gmail-Google-Apps-Suffer-Outage-in-The-Cloud/
not only Microsoft so many com is there...
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Steve purposely strikes that pose so that the Internets can shop lighting bolts out of the tips of his fingers.
Whooohooo!!
And we'll be dancing in the streets! The witch is dead! The wicked witch is dead.
Apple is passionate about their products, MS is passionate about making money