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No, I'm implying an inflection point | 397 comments | Create New Account
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No, I'm implying an inflection point
Authored by: Anonymous on Sunday, November 18 2012 @ 09:07 AM EST

Nothing to do with parabolas. In simplified terms

Microsoft makes "X" sales of Windows
Microsoft makes "Y" sales of Office, where "Y" =
"Z%" of "X"

Reduce X and Y also reduces. Z is affected also by "W", which includes

sales (and free downloads) of iWork, LibreOffice, etc. Z is also affected by
the unemployment rate to a certain extent, i.e. offices aren't buying
additional copies of Office since they don't need them, and the under and
unemployed are likely to use free alternatives. Oh, and Mac App Store
doesn't include Microsoft Office.

Drops in Windows sales cause drops in Office sales, which cause lower
revenue, which causes Microsoft to implement belt tightening measures.
Some of those belt tightening measures may have negative impacts on
sales of Windows, causing further drops.

As I said, this is simplified, but it is based on reading Microsoft's
financials.
Yes, the company is making huge profits, but it is unstable. Any change to
the fortunes of Windows hits other divisions, and the only one that is really
profitable is the one that includes Office and Exchange.

Hope that makes sense.

Wayne
http://madhatter.ca

[ Reply to This | Parent | # ]

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