Microsoft makes 85% margin on Windows system

The Financial Times ^ | November 18, 2002 | Paul Abrahams

[MadIvan]

Well I hope Bill is right that business people are being all too pessimistic - I could use the work.

Regards, Ivan

[MadIvan]

Bump!

[steve50]

Some new concerns have popped up on security. Seems everything after the 1st version of 95 has some DLL keys that allow outside access. Three keys in the newer versions, they think they know who owns 2.

[MadIvan]

Some new concerns have popped up on security. Seems everything after the 1st version of 95 has some DLL keys that allow outside access. Three keys in the newer versions, they think they know who owns 2.

I'm sure Bush2000 will be along to tell you about how it's not a bug, it's a design feature and that anyway Linux is worse. ;)

Regards, Ivan

[mhking]

And now we know the real reason MS opposes open source operating systems. (Linux alert!)

[Mid-MI Student]

But linux is worse!
http://www.freerepublic.com/focus/news/791104/posts

[fourdeuce82d]

"...profit margins of 85 per cent..."

How are these margins calculated? Do they include the costs associated with developing Windows in the first place?

I'm not a real big fan of bill or his software, but this sounds like the complainst about pharmaceutical companies- "this drug costs $.05 to manufacture! How can they justify selling it for $5?" Well, it cost $500 million to develop it and get it through the FDA...

[Hemingway's Ghost]

Get Groove

[Desdemona]

Ah, the power of monopoly. I don't care what anybody says, Bill Gates was slick in the beginning. And his products leave a lot to be desired.

But then, I'm a Mac person....

[lepton]

The client division, which markets Windows, generated operating profits last quarter of $2.48bn (£1.57bn) on revenues of $2.89bn, implying margins of 85 per cent.

I suspect this varies heavily depending upon what part of the production cycle the current versions of Windows are in. Punching out copies of Windows isn't nearly as expensive as developing it.

[agincourt1415]

Bill Gates, figured out a long time ago that the profit was in software not Hardware.

Now look, he is losing money on X-Box (hardware) LOL.

Anyway, here is my most recent MSFT story and it has a good ending. I recently bought a computer that was a Clone built by a local computer shop, it came with XP pre installed, it was complete with the license and all that.

I got home with it, and hooked it up and logged in maybe 3 times and the OP system froze and would not let me in.

Called MSFT Tech Support they said that the OEM (builder) had probably used it to install to another computer, and the time ran out on the license registration, therefore I was out of luck, (I paid the builder $59 bucks to unlock it).

I went back to MSFT tech support and they said there was nothing they could do to reimburse me, but I finally talked to a Call Center Supervisor and they gave me XP OFFICE finally.

Bottom line, Microsoft did me a good turn, and I appreciate that.

[KarlInOhio]

Details? I'm not doubting you, I just want to track down more info on this.

[billybudd]

Linux is great...but not for 99% of the people out there. These high margins from Windows just indicate that Bill Gates is a strategic thinker. He's using the profits from Windows to subsidize various money-losing ventures. These may or may not provide Microsoft with its next cash cow when the shift away from PCs begins.

[Registered]

IF BILL GATES CAN MAKE 85% ON A PRODUCT, MORE POWER TO HIM!

[steve50]

VOXNYC was where the story I read was from
http://www.voxnyc.com/archives/00000059.htm

Strange source but it's out of a British research lab, the NSAKEY sounds interesting

[fogarty]

If the government can make 85% on taxes more power to them!

Doesn't sound so innocuous now, does it?

[unixfox]

The problem with government is they do not produce a product, they only take money from those of us who do.

[B Knotts]

Microsoft makes 85% margin on Windows system

No offense to anyone, but...

Duh.

This is exactly what one would expect, economically speaking, from a MONOPOLY.

[GeekDejure]

Micrsoft makes 85% margin on Windows system

Nahhhhhhhhaaa . . . yer nut akshulee tryin' t'get me t'akshulee bleeve dat Mykrasof akshulee dun sumpin akshulee write... argh ya???

[Gunslingr3]

Bill Gates, figured out a long time ago that the profit was in software not Hardware. Now look, he is losing money on X-Box (hardware) LOL.

Microsoft never considered making money on the Xbox hardware. They planned to take a hit on the cost of hardware in order to get the price down and make sure plenty of units were sold. Xbox is a longterm project. Where the money on that venture is going to come from is licensing of software for it and subscription fees to the WAN multiplayer. Console and PC gaming don't get the press of Hollywood, but they bring in more loot. Bill just intends to ride that wave.