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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
> 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
> 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
http://Schestowitz.com | Open Prospects | PGP-Key: 0x74572E8E
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