In the past year or so, some here have repeatedly claimed that M$’s OS is thriving and the only way to go.“the factors contributing to the decline in Windows PC operating system are addressed in various disclosures in our Segment Results of Operations, including D&C Licensing, Commercial Licensing, and Corporate and Other.” Why then do M$ and the SEC openly discuss the decline in the OS? It’s because it’s happening and affects the bottom line. I’ve been reporting that for years now and the SEC is concerned that investors may not be getting the full story because of the layout and detail of M$’s filings. I like that. The US government barely managed to get M$ to quit doing illegality in the market. Now they seem to be on top of the situation with disclosures.
That’s good. Those disclosures are one of the few reliable means of measuring the health of the monopoly. I think it’s safe to call it “declining health” because many more personal computers running */Linux are sold each year than the monopoly sells licences. In fact, M$ is giving away licences to try to hold back the tide. Tomorrow’s filings should be informative. Note that the next item in the filings was a reminder that the SEC does not consider the correspondence sufficient to get the SEC to drop its guard… Chuckle. Expect greater disclosure/quantification of the decline real soon now. “In future filings, we will provide a reconciliation to our tabular disclosure of operating expenses by segment group noting that integration and restructuring expenses have been excluded from this presentation.” Yes, it seems M$ intends to work for a living instead of coasting from now on.