Thar She Blows!

The great whale of M$ has emerged from the depths of its accounting department with a 10-Q:
“D&C Licensing revenue decreased $335 million or 7%, due mainly to lower revenue from licenses of Windows OEM and Consumer Office, offset in part by increased Windows Phone revenue. Windows OEM revenue declined $237 million or 7%, reflecting a 22% decrease in OEM non-Pro revenue, offset in part by a 6% increase in OEM Pro revenue. Consumer Office revenue declined $217 million or 23%. These decreases resulted primarily from the impact on revenue of a decline in consumer demand.” “D&C” means devices and consumers, stuff on retail shelves.

Note that this decrease in demand is not a decrease in demand by consumers for IT but a decrease in demand for what M$ offers. PC shipments are down a bit from last year, but not 22%, more like 12% or 8.6%, depending on whom you ask. Even the piggy bank, “unearned revenue” is off $2billion. Overall, M$ increased revenue by ripping off businesses who are locked in by their short hairs. Meanwhile, demand for small cheap computers is skyrocketing. This is further evidence that in 2013, many millions of consumers now see choice on retail shelves for legacy PCs and other platforms. After six quarters of decline in shipments of legacy PCs while tablets and smartphones greatly outnumber legacy PCs in the installed base, this is the new reality, not a fad. Through “positive feedback” we should see this move accelerate and M$ become just an ordinary player in IT soon. With aroused employees it should not be long before businesses are motivated to migrate to Freedom sooner rather than later. Students, the next generation of employees, have been seeing GNU/Linux here and there for a decade. Now, every student has seen Android/Linux on smartphones and tablets. That mind-share cannot be erased.

see Form 10-Q.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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10 Responses to Thar She Blows!

  1. Dr Loser says:

    No, seriously, oiaohm.
    What do you do?

  2. oiaohm says:

    Dr Loser consumer devices os mostly Xbox. This will get interesting thinking SteamBox is coming. We have not had lot of competition in game consoles for a while.

    To be correct this time around the loss has been partly hidden. Pro licenses are more expensive than non-Pro.

    This is normal desperation. OEM are finding it less suitable to have non-Pro editions. Pro editions can meet all users requirements including joining network domains.

    In fact the next step after doing away with non-pro would be that OEM wish to do away with different licenses between server and desktop.

    Also Microsoft has had the pack of fans jumping in on windows 8 upgrades this year time frame.

    September to September still includes the spike of windows 8 upgrade sales.

    Dr Loser the September to September should be up due to covering a OS release. That is not you have to wonder what non OS release years are going to look like. When people are not upgrading in mass.

    –It makes no difference which manufacturer or software supplier makes money out of this stuff.–
    In fact it makes a huge difference.

    Manufacture does not make good income there will not be enough resources to make the next generation production plants or even maintain there existing well. So you have more hardware failures.

    So what comes out the end of the cheese grater being dependable or not depend purely on who is getting the profit.

    Unix manufacturer and OS maker being the same company is holding in particular markets due to high reliability achieved by the two parties not being split.

    So the correct answer is you want nether software or the hardware maker running away with the majority of the profit. The hardware maker need so much to invest in new plant and equipment.

  3. Dr Loser says:

    And, you know what, guys?
    I don’t even care.
    It makes no difference which manufacturer or software supplier makes money out of this stuff.
    I just work with whatever comes out the other end of the cheese-grater.
    What do you do?

  4. Dr Loser says:

    You came the raw prawn after all, didn’t you, Dougie?

    What a shame. I was packed and ready to face up to oiaohm in northern NSW in a battle-to-the-death commercial competition with your staunch, yet hopelessly uneducated, support.

    Never mind. I’m sure various law enforcement agencies will catch up with that “racketeering” thing.

    What about that $1,343,000,000 that Robert failed to account for? In a single quarter?

    This is indeed the Dawn of Aquarius!

  5. bw says:

    a decrease in demand for what M$ offers

    Shades of the Black Knight! lol

  6. dougman says:

    $235M in racketeering, oh joy!

    Meanwhile M$ can’t sell their them tablets….another $100 price drop since release.

    http://techreport.com/news/25557/the-first-gen-surface-pro-is-now-699

    Thats $700 for a 32GB device, as bloated Windows consumes the 50% of that space.

  7. Dr Loser says:

    For reference, $235,000,000 buys you roughly 25% of Red Hat’s annual turnover, including “goodwill” and “deferred payments” and other accountancy tricks.

    So, Dougie, don’t come the raw prawn with me on this one.

  8. Dr Loser says:

    Awful, isn’t it, Dougie? Simply awful! And let’s just ignore, for the sake of argument, the fact that M$ has $76,649,000,000 of short-term assets in the bank.

    It’s downhill all the way from there!

    Now, to Robert’s “prediction.” Quarterly accounts are notoriously iffy, but then again Robert was actually “predicting” against this very quarter, so I’ll give him the benefit of the doubt and assume sincerity. On page 28, what do we see? Year on year, ending September 30th:

    Devices and Consumer

    Licensing $4,343m against $4,678m
    Hardware $1,485m against $1,084m
    Other $1,635m against $1,400m

    I make that roughly $1,343,000,000 more than Robert was predicting.

    Oh, and 47% growth in “consumer” devices isn’t too shabby, either.

    And, whoops, I have no clue what “other” might be, but that insignificant $235,000,000 might just be patent licenses from OEMs producing small smart Android thingies.

    Sound the death-knell for the Evil Empire!

  9. dougman says:

    Like always he will make some worthless story. I wonder when M$ stock price will start to drop, not soon enough!

  10. lpbbear says:

    Cue bLOwHARD in 5……..4………3……..2…….

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