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Microsoft's Fourth Quarter Shines, Despite Loss
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melgross
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melgross,
User Rank: Ninja
7/22/2012 | 4:03:30 PM
re: Microsoft's Fourth Quarter Shines, Despite Loss
I think there is too much exuberance over this. Microsoft is clearly slowing down as far as growth is concerned. This was a modest amount of growth, all things considered. But you gloss over areas of negativity as though they don't matter. I'm reading articles where the writer doesnt seem to actually inderstand any of this. The Entertainment division lost $350 million even thought its been combined with the profitable devices division in an attempt to conceal, as much as possible, those losses. This is area that Microsoft insists is of major importance to them, but has managed to lose over $8 billion over the years, with no realistic shot of making a long term profit from.

Then, of course, is the online division, which has also lost billions, and whose losses not only continue to mount, but are getting larger. No chance of making any profits there either.

The phone division, also combined, is a failure so far, with a hope, nothing more yet, that wp8 will turn that around. They've lost a few billion there too.

Win 8 has not received a great welcome. I read that some think this will be their salvation in tablets too. But the evidence so far is that Windows users dislike it intensely. There is no advantage to buying their tablets, and we don't know if they will fail as well, but I can see any number of scenario's in which they do, and little in the way of success.

So actually, this quarter wasn't so great after all, as Office sales increases have been slowing down over the past few years, Windows sales have stops growing since late 2010, well before Win 8 was expected, so it's not just due to that.

Nothing is making money other than their monopoly Windows and Office, while everything else is losing money quickly. The question is whether they will be losing money more quickly then they will be making money in a few years, as the areas where they are losing money are growing that loss more quickly than the areas in which they are making money are growing.


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