Microsoft sees 60% jump in profit, boosted by Windows 7
From the article below, I had two thoughts:
a. The net profit of Microsoft for 3 months was $6.66 billion, which is around 32,000 crore rupees. Thus in 3 months one company made more money than what the Karnataka Government has invested in school education for the last five years!
b. The rate of profit, calculated as net profit / revenues (6.66 billion / 19.2 billion) is is around 35% - very few companies in the world would have a net profit margin which more than 1/3 of revenues!!
Is there something unusual/even wrong in these economics?? These profits for Microsoft are costs for rest of society. When superior operating systems (I use Ubuntu - an African word meaning 'Humanity to others) are available freely shareable, how does a buggy, bloatware make 33% margin for its makers!
regards,
Guru
http://news.bbc.co.uk/2/hi/business/8486378.stm
Microsoft sees 60% jump in profit, boosted by Windows 7
Microsoft launched Windows 7 in October last year. Microsoft has reported a 60% jump in profit, thanks largely to "exceptional demand" for Windows 7. Net profit came in at $6.66bn (£4.13bn) for the three months to 31 December 2009, up from the $4.18bn it made in the same period a year earlier. It also reported record revenues of $19.2bn, which comfortably beat analysts' forecasts. "We are thrilled by the consumer reception to Windows 7," said Kevin Turner, chief operating officer. "This is a record quarter for Windows units."
'Outstanding'
Windows 7 has proved to be Microsoft's best-selling operating system to date after the disappointing Vista. Microsoft was helped by a rebound in personal computer sales in the run-up to Christmas. The company's results are closely tied to computer sales because its two most profitable divisions make the Windows Operating System and Office business software. "These are outstanding numbers," said Brendan Barnicle from Pacific Crest Securities. "The upside was in the Windows business and service and tools, and Office business. The online business came in line and the only business shy of expectations was Xbox." Shares in Microsoft rose 25 cents, or 0.9%, to $29.41 in after-hours trading.
a. The net profit of Microsoft for 3 months was $6.66 billion, which is around 32,000 crore rupees. Thus in 3 months one company made more money than what the Karnataka Government has invested in school education for the last five years!
b. The rate of profit, calculated as net profit / revenues (6.66 billion / 19.2 billion) is is around 35% - very few companies in the world would have a net profit margin which more than 1/3 of revenues!!
Is there something unusual/even wrong in these economics?? These profits for Microsoft are costs for rest of society. When superior operating systems (I use Ubuntu - an African word meaning 'Humanity to others) are available freely shareable, how does a buggy, bloatware make 33% margin for its makers!
regards,
Guru
http://news.bbc.co.uk/2/hi/business/8486378.stm
Microsoft sees 60% jump in profit, boosted by Windows 7
Microsoft launched Windows 7 in October last year. Microsoft has reported a 60% jump in profit, thanks largely to "exceptional demand" for Windows 7. Net profit came in at $6.66bn (£4.13bn) for the three months to 31 December 2009, up from the $4.18bn it made in the same period a year earlier. It also reported record revenues of $19.2bn, which comfortably beat analysts' forecasts. "We are thrilled by the consumer reception to Windows 7," said Kevin Turner, chief operating officer. "This is a record quarter for Windows units."
'Outstanding'
Windows 7 has proved to be Microsoft's best-selling operating system to date after the disappointing Vista. Microsoft was helped by a rebound in personal computer sales in the run-up to Christmas. The company's results are closely tied to computer sales because its two most profitable divisions make the Windows Operating System and Office business software. "These are outstanding numbers," said Brendan Barnicle from Pacific Crest Securities. "The upside was in the Windows business and service and tools, and Office business. The online business came in line and the only business shy of expectations was Xbox." Shares in Microsoft rose 25 cents, or 0.9%, to $29.41 in after-hours trading.
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