MS bashing in the media?

From Online Blog comes an interesting look at this article on Micrososft’s Windows profit margins. It seems that MS pulls off an 86% profit margin on all of it’s sales of Windows and some consumer groups are outraged. To quote:

Cooper said the Microsoft profit margin had been sustained through illegal use of Microsoft’s monopoly power.

“That stuff is the best indicator of unbridled monopoly power,” he said.

“There is just no way to explain that away.”

But as Online blog goes on to discuss, and the article goes out of it’s way not to discuss, (in fact they quote exactly one other software company’s profit margin, a German company that makes 21%, which is probably just the lowest they could find!) is that other large software companies have an even higher profit margin, and no one is going around claiming that it’s all because of their monopoly. Adobe brings in a nice mid-90’s profit margin, so where’s the outrage from consumer groups? I’ll let you read their conclusion:

The really shocking thing about Windows is that the margins are not closer to 100%, since it is basically a royalties business. The PC manufacturer bears the cost of duplication, supplies the manuals, distributes the product, and provides the support. Microsoft just has to ship a couple of “masters” to, say, Dell, at negligible cost, then collect the fees for 16 million sales. Microsoft is hugely profitable, of course, but it could clearly make more if it did not spend vast sums on programmers and R&D.

Maybe MS isn’t really just a money-sucking beast after all?

Similar Posts

  • Movable Type Stuff

    I finally, after spending most of the last two nights and my lunch hour today, have MT installed, configured, tweaked and the entries all put back for the child abuse site. Some stuff is still broken, some stuff will remain broken, existing comments are gone, etc. Some stuff is better. Thanks to a link at…

  • New system

    I did pick up a new system over the weekend, an AMD K7 1.4Ghz, 256MB PC133 RAM, 30GB Maxtor HDD, 10/100 NIC, 32MB shared Video RAM (really not that big a deal for what this machine is used for) for $299. The big selling point for this particular vendor was the 5 year warranty and…

  • This Week’s Links (weekly)

    Those Pesky Email Signatures and Disclaimers tags: LitSupport MM Excel-ling at Discovery tags: LitSupport MM Inbox is a total reinvention of email from Google tags: Tech MM Learning to Let Go: Terminating a Litigation Hold tags: LitSupport MM Forget the Expert Hackers: Worry About the IT Guy tags: Tech Security MM e-Discovery Industry Reaction to…

  • Important Ubuntu lesson

    Remember how I was going to be playing around with that Ubuntu VMware set-up on the VMware player? Well today I discovered that VMWare player will support wireless connections, which I could have sworn I read somewhere that it didn’t. But that’s not the main point I have. Today, after discovering that, I was trying…

  • Switch over

    I officially switched the RSS Feed over to the new BloggerPro version of it, since it came out of Beta and into production. Now if you click the little “XML” image on the right side, you’ll go to that feed instead of the old one. The old one will continue to work for now, but…

  • Blackberry, etc.

    Just yesterday some of us were gathered in the area of the helpdesk, discussing the NTP/RIM lawsuit and what the firm might have to do if the Blackberry service does, in fact, get shut down. The agreement was that we’d end up blowing a big chunk of IS budget rolling out Windows Mobile devices. One…

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

To respond on your own website, enter the URL of your response which should contain a link to this post's permalink URL. Your response will then appear (possibly after moderation) on this page. Want to update or remove your response? Update or delete your post and re-enter your post's URL again. (Find out more about Webmentions.)