WOW! M$’s Q3 Revenue Down 33% for the Client OS at Robert Pogson

WOW! M$’s Q3 Revenue Down 33% for the Client OS

Published by Robert Pogson October 18th, 2012 in technology. 1 Comment

Even if they counted the deferred revenue for filling the supply-chaing with “8″ they would still be off 10% so they are doing worse than the unit shipments of PCs, expected because their share is falling. Retailers are really hoping they can sell “8″… There was no back-to-school bump. The whole operation was off 8%.

“Windows Division revenue decreased from the prior year, due mainly to the deferral of $783 million of revenue related to Windows 8 Pre-Sales and $384 million of revenue related to the Windows Upgrade Offer. Windows Division revenue was also negatively impacted by a decline in the PC market, decreased inventory levels within distribution channels as OEMs and retailers began to prepare for the Windows 8 launch, and continued higher relative growth in emerging markets, where average selling prices are lower than developed markets.”

see QUARTERLY REPORT ON FORM 10-Q.

- Robert Pogson

1 Response to “WOW! M$’s Q3 Revenue Down 33% for the Client OS”

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1 oiaohm Oct 18th, 2012 at 5:25 pm

–continued higher relative growth in emerging markets, where average selling prices are lower than developed markets. –

This is the MS problem. Developed Markets are about at OS saturation point.

Notice that the operating income part cuts in 2 from a 33 percent drop.

Cost of maintaining Windows every quarter is about 1.5 billion. The cost of maintaining a Linux Distribution and all is software is in fact more but its spread no single point has to pay it all with Linux.

The other nasty fact is 75% of windows sales come from OEM makers. So if they cut their purchases by half the Windows will be non profitable. With windows 8 that they have dropped the price per unit by 10-30 percent on OEM it brings the hazard point closer. Also the fact they end the full windows box set. What was basically double priced Windows.

Over all I don’t Windows & Windows Live Division to get better any time soon. The question is how bad is its going to get. Will MS have to run this Division like it runs bing that is produce at a loss.

The reality is this time if Windows 8 sales flop like Vista Microsoft will be operating at a loss in Windows & Windows Live Division.

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