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.