Microsoft profit drops as Windows sales dive; shares slide
Friday, April 25, 2008 - 09:51 AM EST "Microsoft Corp., whose Windows software dominates the personal-computer market, fell 4.6 percent in early U.S. trading after sales slumped, casting doubt on whether PC demand can hold up in a slowing economy," Amy Thomson and Crayton Harrison report for Bloomberg."The world's largest software maker reported a 24 percent drop in sales of Windows last quarter and forecast earnings that may miss analysts' estimates," Thomson and Harrison report.
"Windows sales fell to $4.03 billion. UBS AG's Heather Bellini, the top-ranked software analyst by Institutional Investor, had predicted $4.3 billion. Sales of Office word- processing and spreadsheet applications also trailed forecasts," Thomson and Harrison report. "Losses at Microsoft's Internet business widened to $228 million, while sales rose 40 percent to $843 million. Microsoft had forecast growth of as much as 45 percent."
Full article here.
Amy Thomson reported for Bloomberg yesterday, "Microsoft Corp. declined 5 percent in extended trading after it reported an 11 percent drop in third-quarter profit and forecast earnings that may miss analysts' estimates as Windows software sales fell."
"Chief Financial Officer Chris Liddell said Microsoft will stand firm on its offer for Yahoo! Inc. and will explore other options, including a proxy fight or abandoning the offer, if no deal is reached by this weekend. Yahoo spokeswoman Diana Wong declined to comment," Thomson reported.
"Chief Executive Officer Steve Ballmer has sought to bolster sales by selling more higher-priced versions of Windows, the operating system that runs more than 90 percent of the world's PCs. Those gains were limited last quarter," Thomson reported. "More Windows sales came from emerging markets, where prices are typically lower, Liddell said in an interview. Piracy rates also picked up in Asia, particularly China, Liddell said."
Full article here.
MacDailyNews Take: Excerpts from a BusinessWeek interview with Apple CEO Steve Jobs, October 12, 2004:
BusinessWeek: What can we learn from Apple's struggle to innovate during the decade before you returned in 1997?
Steve Jobs: Apple had a monopoly on the graphical user interface for almost 10 years. That's a long time. And how are monopolies lost? Think about it. Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren't the ones that drive the company forward anymore. It's the marketing guys or the ones who expand the business into Latin America or whatever. Because what's the point of focusing on making the product even better when the only company you can take business from is yourself? So a different group of people start to move up. And who usually ends up running the show? The sales guy... Then one day, the monopoly expires for whatever reason. But by then the best product people have left, or they're no longer listened to. And so the company goes through this tumultuous time, and it either survives or it doesn't.
BusinessWeek: Is this common in the industry?
Steve Jobs: Look at Microsoft -- who's running Microsoft?
BusinessWeek: Steve Ballmer.
Steve Jobs: Right, the sales guy. Case closed.
Source: The Seed of Apple's Innovation

Spot on!
Jobs, he brilliant (written like 'God, he's brilliant', since Jobs is God!).