I think M$ would rather keep this one quiet. That other OS is showing little growth in the latest quarterly report. The illusion that M$ has the answers for IT is all but gone. After the client division declines, whither goes the other tentacles of their nightmarish cash-cow?
- Unearned revenue for client division = $1.453 billion “Unearned revenue from volume licensing programs represents customer billings for multi-year licensing arrangements paid for either at inception of the agreement or annually at the beginning of each billing coverage period and accounted for as subscriptions with revenue recognized ratably over the billing coverage period.”
- Total revenue for the client division was $4.606 billion up 4% over last year’s quarter
- Revenue – Unearned Revenue = $3.153 billion
- This quarter, last year, Revenue – Unearned Revenue was $4.393 – $1.370 = $3.023 billion
So, even without the slight-of-hand involving drawing money from the slush-fund of unearned revenue, revenue for the client division is up 4%. What will they do when the slush-fund runs out?
“The following table outlines the expected future recognition of unearned revenue as of March 31, 2012:
Three Months Ending,
|June 30, 2012||$6,217|
|September 30, 2012||$3,921|
|December 31, 2012||$2,726|
|March 31, 2013||$1,065|
M$ is getting twice the growth in licence revenues that IDC is seeing in PC shipments by OEMs. How they did that with a shortage of hard drives is beyond me. M$ says they had a higher attach-rate. Five years ago, when XP was old, M$ reported revenue for “client” of $5.279 billion, with unearned revenue of $2.684 billion. That’s incredibly slow growth for a bully like M$.
UPDATE I am not the only one surprised. The BBC reports that people were expecting a 4% decline in sales of that other OS…