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Um, the Windows division of MSFT brought in $19.2B of their $78B in total revenue. I'm no expert, but giving up 25% of your revenue is no way to run a company.
by tdees40 13y ago
Um, the Windows division of MSFT brought in $19.2B of their $78B in total revenue. I'm no expert, but giving up 25% of your revenue is no way to run a company.
- topbanana 13y agoYou could have said the same about Amazon before they launched Kindle
- radmuzom 13y agoAmazon's core business is retail, not technology. I am excluding AWS, Mechanical Turk, etc. in this discussion. So selling the Kindle at a loss makes sense to them given that it will used by consumers to purchase retail goods (books, movies, music, etc. in the case of Kindle). Microsoft's core business is Windows - what would they sell if they give it away for free? Tetris?
- bdcravens 13y agoWhat product was 25% of their revenue that they began giving away?
- freehunter 13y agoHow did Kindle lose money for Amazon? I'd imagine the money made from Kindle hardware plus the fact that ebooks are cheaper to stock and therefore have a much higher profit margin would be a gain for Amazon. Stocking a billion books isn't cheap like stocking a billion ebooks.
- riggins 13y agoUm, the Windows division of MSFT brought in $19.2B of their $78B in total revenue. Even more important, Windows brings in almost half of their operating profit. I'm going off the 2010 10-K, Windows was ~$12B of operating profit, MSFT Business Division (i.e. Office) was about $14B of operating profit ... out of $27B of total operating profit. As you would expect, the monopolies bring in the huge margins. The other stuff just earns a normal return on capital.