Comments on: WOW! M$’s Q3 Revenue Down 33% for the Client OS http://mrpogson.com/2012/10/18/wow-ms-q3-revenue-down-33-for-the-client-os/ One man. Closing, all the windows. Wed, 22 May 2013 21:07:39 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: oiaohm http://mrpogson.com/2012/10/18/wow-ms-q3-revenue-down-33-for-the-client-os/#comment-100423 oiaohm Thu, 18 Oct 2012 23:25:05 +0000 http://mrpogson.com/?p=15183#comment-100423 –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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