“Revenue in Devices & Consumer, which includes everything from consumer Windows licenses to Surface, Xbox and Bing, grew 13 percent to $11.91 billion.
Though Windows revenue from manufacturers declined 3 percent, revenue from Surface — Microsoft launched the second generation of its Surface tablets in the second quarter — doubled from the previous quarter.”While M$’s latest quarterly report looks good for M$, it clearly shows Wintel is split right down the middle. On the one hand, M$ saved its bacon by growing sales of “surface” by $billions. On the other, its old partners, the OEMs, clearly took a big hit. M$ and everyone else are taking revenue from those OEMs. M$ has an unfair advantage against the OEMs. M$ doesn’t have to pay its own licensing fees…
What will the OEMs do? Continue as manufacturing slaves for M$ or go into business for themselves with FLOSS and GNU/Linux and Android/Linux? Wait! They are in business for themselves, right? That means in 2014 OEMs that dipped their toes in the FLOSS pool last year will plunge in. Android/Linux, Ubuntu GNU/Linux, Linpus GNU/Linux and every other kind of */Linux will be shipped in huge numbers. The consumers have shown they won’t pay retailers and OEMs to supply Wintel PCs but for ~$100 less per unit with FLOSS the flow of legacy PCs and every other kind of PCs the OEMs can produce will take off. I wonder how many of those “surfaces” still gather dust on retail shelves? Maybe the retailers took a hit as well.
In case the reader is skeptical, take a look at the numbers:
|M$’s Licensing Revenue
|M$’s Hardware Revenue
Essentially, M$’s take from the global IT budget of consumers rose $1.6b and the OEMs’ fell… That is a huge change to the
“partnership” enslavement licence. Wintel is broken and M$ neither can nor wants to put it back together. The same thing is happening to the “resellers” who get to point businesses at M$’s cloud never to be seen again…
I’m OK with this. The “partners” of M$ will now have to work for a living and get involved with FLOSS or die. M$ can afford to become an OEM if necessary but it will also have to work for a living. Good. M$’s gross margin for consumers dropped $1b while it rose $1b for businesses. That’s the choice that has been made. Hundreds of millions of consumers freed themselves from Wintel in 2013. 2014 looks to be an even better year.
See Microsoft’s quarterly numbers spring past estimates | The Seattle Times.