A Useful Addition
Observations on Software - Markets, Technology, and Companies
Sunday, November 17, 2002
Observations on Software - Markets, Technology, and Companies
It's Good To Be King, Chapter 372
The Financial Times reports on a quick analysis that reveals Microsoft enjoys 85% margins on the Windows operating system. Nice work, if you can get it. But before you get too excited (or annoyed, depending on your view of things Microsoft), realize they lost money on all their other product lines. According to FT, the client division, which markets Windows, generated operating profits last quarter of $2.48bn on revenues of $2.89bn, implying margins of 85 per cent.
The Financial Times reports on a quick analysis that reveals Microsoft enjoys 85% margins on the Windows operating system. Nice work, if you can get it. But before you get too excited (or annoyed, depending on your view of things Microsoft), realize they lost money on all their other product lines. According to FT, the client division, which markets Windows, generated operating profits last quarter of $2.48bn on revenues of $2.89bn, implying margins of 85 per cent.