[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.

[mhking]

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

[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

[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.

[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???

[ikka]

Can you think of any other company which makes more than even $1billion per year with those kind of margins? Is there any business unit at GE, or IBM, with those kind of margins?

I don't think so.

[billbears]

Salomon Smith Barney estimates the company loses about $120 on each console it sells.

And makes every bit of it back through the overpriced video games that either they make themselves or have another company design for the XBox

[bandleader]

When did it become"Un-American"for a business venture to profit?

[boris]

Why shouldn't MS make 85%? That's the whole point of selling software. Once it has been created, the marginal cost of another package is very small.

What profit rate do record companies make on CDs?...What profit rate does a rock star make?...For a few hours in a studio, say $5000 per hour, what is his return on investment?

Intellectual property that one can sell is the most profitable stuff you can purvey. Big deal.

--Boris

[Glenn]

It's all in the accounting, I guess. I'm glad the company isn't on the ropes.

[Paul Atreides]

[Cacique]

Who the hell is anybody to determine what is a reasonable profit? Don't like the product, don't buy it.

While we are at it let's complain about the price of a Rolls Royce or a Ferrari or a Lamborghini. Does any socialist out there think corporations or owners of businesses should sell things at cost? Where would government get it's revenue? They charge whatever the market will bear and more power to them.