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Re: OEM - Sell Windows - Go Broke

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____/ Rex Ballard on Friday 28 May 2010 05:21 : \____

> This is a chart that really shows the ugly situation for Microsoft.
> 
> Company         MarketCap       Revenue         ProfitMargin
> OpMargin
> IBM             162B             96 B           14.7%           19%
> MSFT            227B             59 B           29%             38%
> AAPL            230B             51 B           21%             29%
> HPQ             110B            120 B           7%              10%
> DELL             26B             52 B           3%               5%
> 
> Microsoft is a pure software play, while AAPL is a hardware and
> software play.  So AAPL should be making profits similar to Dell or
> HP, right?
> 
> The only problem is that even though HP and Dell are making big
> revenue, they are only making 3% profit margins - while Microsoft
> gets' 38% profit margins.
> 
> Apple has it's own software so it can charge more for it's highly
> differentiated and distinguished products.
> 
> IBM uses Linux, AIX, and Z/OS and as a result makes better profit
> margins that either Dell or HP.
> 
> Moral of the story - if you make yourself dependent on Microsoft
> Windows - you make Microsoft rich while you figure out how to cut
> costs to the bone in order to show any profit at all.  On the other
> hand, if you maintain independence - choosing to support UNIX and
> Linux - you make substantially higher profits.
> 
> Gateway and E-Machines didn't learn that in time - they are now owned
> by Acer which is privately held.
> 
> Hard to imagine that Windows 3.0 only sold 10 million copies, isn't
> it?
> Acer and ASUS sold over 10 million Linux powered NetBooks in it's
> first MONTH!
> 
> Apple only sells about 10 million Macs a year.
> And several million iPhones
> And several million iPods
> 
> They all run Unix (OS/X).

If you compare Windows revenue in 2009-10 to 07-08 you will see that it keeps
declining. OEMs should gravitate towards revenue and Microsoft is
no longer the place to be (long term).

Windows is getting cheaper as GNU/Linux is improving (and becomes
more compelling an option for OEMs).

- -- 
		~~ Best of wishes

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