Down, Down, and Down Some More: M$’s Tax

Well, it’s not all good news, M$’s latest 10-Q, but I like it. While the world is shipping and buying client IT like hotcakes“Retail and non-OEM sales of Windows declined $319 million or 50%, due mainly to the launch of Windows 8 in the prior year. Windows OEM revenue declined $226 million or 2%, reflecting continued softness in the consumer PC market, offset in part by a 12% increase in OEM Pro revenue.

Commercial Windows revenue grew $90 million or 11%”
M$’s revenues are way down except for businesses replacing XP. They had an 11% pop over last year’s Q1. Chuckle. If $90million is an 11% pop, their total commercial OS licensing revenue was just $908million. Last year, in this quarter, they reported 23% growth in client licensing overall, despite the softness of the “PC”-market. Oh, my. How the mighty are fallen. With all the talk of recovery and innovation, they are barely holding the line.

Truly, the era of Wintel has come to an end, downhill with a tail-wind on a slippery slope. No end in sight, but it is spectacular. M$ and Intel can diversify and advertise all they want, but the Wintel monopoly is dead.

See MSFT 10-Q Q1 2014.

See also, Reading between Microsoft CEO Nadella’s lines: On courage, subscriptions and unique value

Mary Jo Foley: “If anyone is still wondering whether it’s still really a Windows-first world at Microsoft now, those thoughts should be banished. Nadella’s Microsoft seems more realistic, and is hoping to wedge its way in by getting users to try any Microsoft device, software or service, with the hope that more usage, if not love, may follow.”

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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