2 ms·
If we estimate around 80MM PCs sold in a quarter, MS generates about $60 Windows revenue for every PC sold, but their costs are about $22 (from Q411 results Rev
by steveb 15y ago
If we estimate around 80MM PCs sold in a quarter, MS generates about $60 Windows revenue for every PC sold, but their costs are about $22 (from Q411 results Rev $4.7B, Profit $2.9B). It will be hard for them to the cut license fee unless they can significantly increase unit sales.
This is probably why they didn't push WP7 on tablets.
For almost all the OEMs, the average margin on a PC is single digits.
- polshaw 15y agoCan we get some citations on these numbers please? ..we aren't even in Q4.11 yet? Another key factor to bear in mind is that, at least today, tablets are an additional computing device, and don't replace any existing PC.
- steveb 15y agoFiscal years don't always match calendar years. Microsoft's Q4 ends on June 30th. http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY11/Q4/default.aspx http://www.microsoft.com/investor/EarningsAndFinancials/Earn... I don't think you can say that tablets are bought in addition to PCs, as we've seen PC sales flatline and contract in the U.S. and Europe since the iPad was released. Nobody really knows what the long-term impact will be.
- saturdaysaint 15y agotablets are an additional computing device Why? As of iOS5, none of the tablets require a desktop or laptop. I'd venture to say that %90 of people use their home computer for communication (social networking, e-mail, skype) and leisure (games, web-browsing). Why should someone buy something heavy and expensive when a sleek, inexpensive (and dockable) tablet meets all of those needs?
- FrancescoRizzi 15y agoI've seen that same ~80M figure over here as well: http://www.guardian.co.uk/technology/blog/2011/jul/21/post-pc-apple-products-show http://www.guardian.co.uk/technology/blog/2011/jul/21/post-p... (from July '11) as the first bullet in the "PC Sales" section, which quotes Gartner and IDC sources.
- saturdaysaint 15y agoAh, thanks for the specifics. This only underscores the existential threat that a decent quality $300 Android tablet poses. Microsoft would need a staggering advantage to even sell Windows 8 at cost ($22) to a manufacturer at that level.