Microsoft posts record quarterly profits

The press has been talking at length about Vista’s lukewarm reception, and some journalists have even taken to comparing Windows Vista to the ill-fated Windows Millennium Edition. You wouldn’t know it, though, from Microsoft’s latest quarterly financial results announcement. For its third fiscal quarter ended on March 31, the company has posted record net income of $4.93 billion—a rise of no less than 65% compared to the same time period last year. The software giant also posted revenue of $14.4 billion, 32% higher than last year. Microsoft boasts that the results were driven by “robust demand” for both Windows Vista and Office 2007. The new operating system and office suite both launched on January 30, roughly a third of the way into Microsoft’s third fiscal quarter.

Comments closed
    • DrCR
    • 13 years ago

    I used WinME for 5years as a primary OS (That’s what got me hooked on Slackware/VectorLinux lol).

    Edit: Meant as a reply to elsewhere…

    • WaltC
    • 13 years ago

    Indeed, Vista has been selling very well. It’s gratifying to, once again, see the negative, FUD-generating sites the Internet is infested with be proven flatly wrong…;) Ah, joy. Makes my day.

    When people wake up one day and realize that 99.9% of the half-baked and self-appointed web-site pundits and critics, who accomplish nothing and contribute nothing to anybody’s computing environment, are in reality seeking only to glorify and glamorize themselves by pretending to be knowledgeable instead of ignorant as they truly are–well, when that day comes, the Internet will have made great strides in maturity….;)

    Frankly, I’m sick of hearing cheapskate software pirates trying to justify not paying for their software by knocking it and talking about how bad it is. What an illogical conundrum they present. I mean, the only possible justification for pirating software is how *good* you think it is, right? Who but a dumbbell would bother to pirate rotten software?….;) Amazing how many freely admit they spend their hours pirating software they think is too rotten to pay for…;) Heh, that’s really funny when you think about it.

    I paid about the same thing for WinXP Pro in ’01 as I paid for Vista Ultimate retail in ’07, and I have to say that for my one-time investment in XP in ’01 I received years and years of updates and feature enhancements absolutely free of charge. I expect the same will be true of Vista. That makes Microsoft’s XP OS the best-supported software I have ever owned, bar none. It’s so tiring to listen to people rant about how clever they are by not paying for the OS they choose to use, while completely forgetting to inform their readers about all of the inconvenient hoops they have to constantly jump through in order just to /[

      • A_Pickle
      • 13 years ago

      Hooah. 🙂

      Oh, and…

      y[<"Indeed, Vista has been selling very well. It's gratifying to, once again, see the negative, FUD-generating sites the Internet is infested with be proven flatly wrong...;) Ah, joy. Makes my day."<]y

      • bozzunter
      • 13 years ago

      Ah, joy. Makes my day.

      I’m glad you enjoy just by reading MS is making money, personally it’s indifferent to me, you know, I feel happy for other things.

      But apart from that, I insist that Vista doesn’t improve your average day in any way, it doesn’t have any useful feature which makes me feel an upgrade would be necessary for my 30 PCs I have in my office. That’s it. The fact that you’re one of the few who bought the Ultimate Edition, which only has a few crap apps you can download from Internet anyway, says it all.

      • DukenukemX
      • 13 years ago

      y[

    • herothezero
    • 13 years ago

    q[< #3, Yes, monopoly usually means you rake in the dough. Big surprise there.<]q Which monopoly is that? Apple's vertical monopoly or M$'s horizontal monopoly? Six in one, half a dozen in the other. Did no one see Apple's numbers for last quarter? Or their profit margins? q[

      • DukenukemX
      • 13 years ago

      y[

        • A_Pickle
        • 13 years ago

        y[<"Windows runs on an open platform but currently has no competitors."<]y Apart from Linux, Solaris, and FreeBSD, yeah, I guess you're right. y[<"Mac OS X is that only other alternative but it's only usable on Apple computers. I'm sure Apple would love to release a version for PC given that Microsoft wouldn't crush them or buy them."<]y Hah, that's a laugh. Apple doesn't want to sell OS X because that would mean that OEM PC companies who can trump Apple on price anytime, anywhere, could pre-install Mac OS X on their computers for a much, much lower price than on a brand new Mac. It's not a matter of whether or not "Microsoft would crush them," Dell's been eager to sell OS X for years and IS selling Linux on it's machines -- Microsoft hasn't crushed Dell or Ubuntu. Boy, that sure rains on the parade of the FSF's conspiracy theories, doesn't it? y[<"Is that a result of people buying more computers since last year? Like say about 65%? Is the sales increase mostly from Vista being pre installed in Dell/HP computers or did people actually go to the store and buy it as an upgrade? Is it actually from selling Vista? Could it the result from Office 2007? Could Xbox 360 be bringing in a profit?"<]y Spin it however you want. The fact is, this period of Microsoft profit stands out from the rest because it has had a tremendous spike in sales. It just so happens that Microsoft also launched Windows Vista and Office 2007 in this period. You are left to make your own conclusions.

          • DukenukemX
          • 13 years ago

          y[< Apart from Linux, Solaris, and FreeBSD, yeah, I guess you're right.<]y Solaris is a server OS and not a end user consumer OS. Linux is free and most distributions are for servers. FreeBSD is also another free OS that's for servers. Mentioning those OS's against Windows is like saying a Mac Truck is competitive against a Honda Civic. y[< Hah, that's a laugh. Apple doesn't want to sell OS X because that would mean that OEM PC companies who can trump Apple on price anytime, anywhere, could pre-install Mac OS X on their computers for a much, much lower price than on a brand new Mac. It's not a matter of whether or not "Microsoft would crush them," Dell's been eager to sell OS X for years and IS selling Linux on it's machines -- Microsoft hasn't crushed Dell or Ubuntu.<]y Dell is a huge buyer of their OS so that would be stupid. Ubuntu is a free OS. How do you crush this? If Apple could sell enough licenses for OS X then they could make a huge profit. Probably bigger then computers that make up about 6% of the market. Of course Dell would certainly sell PCs with Mac OS X at a much lower price but who cares? They don't because Microsoft is a Gorilla in the market. Mess with them and prepared to be crushed.

            • A_Pickle
            • 13 years ago

            y[<"Dell is a huge buyer of their OS so that would be stupid. Ubuntu is a free OS. How do you crush this?"<]y I understand I said Ubuntu... but... Ubuntu isn't the only distribution of Linux, as we all know all too well. Distrowars is probably the biggest weakness of Linux. As we know, it's not a consumer OS that makes the money -- it's the business OS. Red Hat, SuSE, and to some extent Fedora Core are used in this area. The first two of those aren't free. y[<"Of course Dell would certainly sell PCs with Mac OS X at a much lower price but who cares?"<]y Apple, who makes their profits off of their hardware, which is notably more expensive than equivalent or superior offerings by HP or Dell.

            • accord1999
            • 13 years ago

            y[

      • Gandhi
      • 13 years ago

      y[

    • Kopi
    • 13 years ago

    When will you guys realize that whether you like it or not you will eventually buy vista. This is M$ world and there is nothing anyone can do about it. And… it’s not about to change any time soon.

      • sigher
      • 13 years ago

      Buy? hehe, yeah sure

        • A_Pickle
        • 13 years ago

        Or fight the man! Yeah, that’ll teach Microsoft, won’t it? Yeah. Format and reinstall your OS every 30 days. That’ll teach evil Microsoft!

    • tremelai
    • 13 years ago

    Looking at the IT community in my area, I can say that I have never seen so many licensing audits from M$ in my career.
    In the past, there was one audit every other year, maybe two. I have seen three in the last few months!

    Perhaps there may be other reasons for M$’s up tick in revenues?

    • Delta9
    • 13 years ago

    Wow ramming Vista down major OEMs and consumers throats worked. Big surprise, ship a broken product and the sheep buy it because there only other option is paying an extra 300 dollars for the same or inferior hardware and OSX. Maybe they should consider making a new version that works out of the box and looks like windows instead of a crappy OSX look alike.

      • Krogoth
      • 13 years ago

      Vista isn’t broken.

      The problem is that there is very little reason for average joe to upgrade their current systems.

      They still run on hardware that is two to five years old and still does everything that average joe needs to do fine.

      Vista doesn’t make sense for older systems. It is meant for SMP capable rigs which still make up a growing minority.

    • Klopsik206
    • 13 years ago

    My guess is – it’s tighter activation scheme and integration with windows update converts lots pirated installs into legal one.

      • Krogoth
      • 13 years ago

      Wrong on both accounts.

      The reason why everybody and their grandma isn’t getting Vista?

      There isn’t a real reason to upgrade with current systems. Vista is build for mainstream systems of tomorrow (or what is considered high-end today)

      It doesn’t help that MS increased MSRP on retail copies of their OS.

      Piracy was very little to do with lukewarm response. Vista is a lot more difficult to pirate then previous versions of Windows. It isn’t casual pirate friendly.

      • Forge
      • 13 years ago

      Only the lazy pirates. Serious software pirates have cracked MS’s OEM activation loophole and are living the good life, passing genuine checks, living a serial-number-free life, and enjoying Vista Ultimate (such as it is). The lazy Napster-flavor pirates don’t get a ‘corporate’ CD that installs anywhere, so they can’t be bothered, they buy a new PC with Vista and let the preinstall stay on that machine while using the serial on the sticker to install/activate a whole other machine.

      Nothing has really changed.

        • Klopsik206
        • 13 years ago

        Agreed. Lazy to serious ratio is like 10:1. Microsoft wins.

    • PetMiceRnice
    • 13 years ago

    Surprising news considering that I have not yet bought Vista.

      • SpotTheCat
      • 13 years ago

      heh, you are not personally connected with microsoft’s revenue or profit! blasphemy!

      • A_Pickle
      • 13 years ago

      Oh, really? MAN. I’m sure that puts a TREMENDOUS dent in these numbers…

        • PetMiceRnice
        • 13 years ago

        LOL, no doubt about that!

    • 1970BossMsutang
    • 13 years ago

    I don’t think anything can or ever will be as terrible as windows millenium. I actually like vista i think its a nice new look over the gui of xp. Plus i have yet to see any performance disadvantages with vista over my original xp 64 bit build. If anything vista seems to run much better then xp ever did on my machine.

    • herothezero
    • 13 years ago

    : doing my best Ellen Feiss impression :

    *[

      • Gandhi
      • 13 years ago

      Yes, monopoly usually means you rake in the dough. Big surprise there.

      May be you should take a look at the results in their web search and entertainment divisions, where they are facing competition. See how much money they are making there.

        • SPOOFE
        • 13 years ago

        That’s cute.

    • bozzunter
    • 13 years ago

    Windows Vista is basically useless, I don’t think many users will buy a new PC in order to have it. But Office is a revolution, not Word or Excel but Access and Groove, this one offered in Enterprise editions.

    And MS margins are so high as they sell at 10 what it cost them… 0. Apart from the R&D costs, of course.

      • Hotdog
      • 13 years ago

      /[

        • Klopsik206
        • 13 years ago

        It depends…
        In volume large enough R&D may be negligible.

        • bozzunter
        • 13 years ago

        As opposed to other software makers, who ship in gold boxes filled with diamonds, driving up costs?

        As opposed to other software makers which update their products every now and then, not every 5 or 6 years.

          • Mac_Bug
          • 13 years ago

          yes, because you’ll be willing to pay for new version of windows every year, right?

    • Ricardo Dawkins
    • 13 years ago

    Now lower the price to North americans to 3 dollars….so they don’t switch to Ubuntu…
    fp

      • sigher
      • 13 years ago

      Hmm, lose $3 and be saddled with vista or get free ubuntu and be free of the crap..

Pin It on Pinterest

Share This