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Microsoft profits way down on expectations

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by deadly ernest

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The story at this ZDnet link is about the reduced profit for MS this quarter and year -

http://blogs.zdnet.com/BTL/?p=21635

MS list a whole swag of reasons why they have a 29% drop in revenue. Including the way they've cut the prices to get Windows on to Netbooks and the recent discounts on Win 7.

Either way, they still make 24.93% profit on their total revenue - that's close enough to a 25% percent profit to not worry about. When they bitch about cutting margins way back on some lines, it makes you wonder exactly how much mark up they do have.

However, I expect the trend in being under expectations to continue until they change their expectations. I also expect their market share to continue to drop due to burning too many corporate fingers with the Vista incompatibility issues. But time will tell.

What are your thoughts? Do make a point of reading the original article, it's interesting.

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by deadly ernest

They work hard at trying to explain it away and list several factors - the main one being Netbook sales up full PC sales down in response as people by Netbooks over PCs.

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