Microsoft posts first quarterly loss in company history

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  • Reply 81 of 156
    solipsismxsolipsismx Posts: 19,566member
    tyler82 wrote: »
    Their competition is what gave us iMac, iPod, iPhone, OS X.

    I don't see how any of that is true. First of all, 3 of the 4 you mention are HW items which MS doesn't do, except for the Zune but I don't see any thing with that product that made the iPod better. OS X is the only thing that is relatable to a MS product but let's remember history. You'll be hard pressed to find many features that Apple borrowed from MS but a lot MS took from Apple. Furthermore, OS X came from NeXTSTEP. It's not a copy of Windows, yet Windows has a lot of roots in following Apple into the future.
  • Reply 82 of 156
    tyler82tyler82 Posts: 1,103member
    solipsismx wrote: »
    I don't see how any of that is true. First of all, 3 of the 4 you mention are HW items which MS doesn't do, except for the Zune but I don't see any thing with that product that made the iPod better. OS X is the only thing that is relatable to a MS product but let's remember history. You'll be hard pressed to find many features that Apple borrowed from MS but a lot MS took from Apple. Furthermore, OS X came from NeXTSTEP. It's not a copy of Windows, yet Windows has a lot of roots in following Apple into the future.

    I never said anything about any of those products being copied or borrowed or influenced by Microsoft products. Rather they are a creative response.
  • Reply 83 of 156
    wovelwovel Posts: 956member

    Quote:

    Originally Posted by diddy View Post


    Where have they done that?  Last I heard MS still sells Office 2011 and likely will be selling Office 2014 which will again be different from the recently announced Office 2013 (Windows).  MS has not announced that they are stopping anything on the Mac.



    Correct.  I don't recall office for Windows and Office for Mac ever coming out in the same year.

  • Reply 84 of 156
    wovelwovel Posts: 956member

    Quote:

    Originally Posted by Hellacool View Post





    When you have someone "over a barrel" you do not offer joint licensing. Keep dreaming, you make way to many assumptions in your post. Considering you are not Bill Gates, kind of hard to speak on his behalf.


    Joint licensing +MS had to buy 150 million in stock and agree to make Office for at least 5 years.


     


    How were they not over a barrel?

  • Reply 85 of 156
    solipsismxsolipsismx Posts: 19,566member
    tyler82 wrote: »
    I never said anything about any of those products being copied or borrowed or influenced by Microsoft products. Rather they are a creative response.

    Again, out of 3 HW products by Apple only the Zune from MS could be compared to an Apple product. So how exactly did Apple have a response to creating the iPod when it predates the Zune but over half a decade?
  • Reply 86 of 156
    majjomajjo Posts: 574member
    tyler82 wrote: »
    Funny, the only way I interpret your story is that they lost money.
    Time, value, stocks, interest, investments. It's all money.

    technically you can look at it that way. But I think the point he was trying to make was that the overdrawn bank account analogy just doesn't work that well in this case.

    I look at it this way:

    Say you have $1M in the bank, and you own (completely paid off) a house valued at $1M
    The next year, you earned $500k, so that's $1.5M in the bank, but the housing market crashed, so you value your house at 1cent.

    Your net worth went from $2M to $1.5M, so it looks like a 500k loss.
    However, you actually have more money in the bank, and still a pretty nice house to live in... even if it is only worth 1cent.

    MS isn't losing 400M in cash. They actually made 5Bish. They're just saying one of their 'houses' is only worth 1cent instead of 6.2B.
  • Reply 87 of 156


    I love Mitchell and Webb. The snooker commentary is classic.


     


    "And that's a bad miss" and Webb spoons sugar into his lager.

  • Reply 88 of 156
    lightknightlightknight Posts: 2,312member

    Quote:

    Originally Posted by AppleInsider View Post



    While the Redmond firm once had somewhat of a presence in smartphone market during the nascent pre-iPhone stage


     


    AI. Sloppy sentences. Sloppy "journalism". Why do I even read it? Oh, yeah, to enjoy the commenting ;)


     


    "somewhat", definition: "most of the market". Example: "iPhone enjoys somewhat of a presence in high-end smartphone market, and iPad enjoys somewhat of a presence in tablet market"


    "nascent", definition: "the decade before the last five years, or any long period of time followed by a short one, of interest to the writer" Example: "Men walked or rode horses during the nascent pre-airplane stage"

  • Reply 89 of 156
    tyler82tyler82 Posts: 1,103member
    majjo wrote: »
    technically you can look at it that way. But I think the point he was trying to make was that the overdrawn bank account analogy just doesn't work that well in this case.
    I look at it this way:
    Say you have $1M in the bank, and you own (completely paid off) a house valued at $1M
    The next year, you earned $500k, so that's $1.5M in the bank, but the housing market crashed, so you value your house at 1cent.
    Your net worth went from $2M to $1.5M, so it looks like a 500k loss.
    However, you actually have more money in the bank, and still a pretty nice house to live in... even if it is only worth 1cent.
    MS isn't losing 400M in cash. They actually made 5Bish. They're just saying one of their 'houses' is only worth 1cent instead of 6.2B.

    I understood the concept, which is quite simple. They still paid for the house, and if you downstream far enough actual money is involved, so money is lost somewhere, and in this case lots of it, unless someone gifted Microsoft a 6 billion dollar asset. I assume MS has made huge investments before and they probably didnt pay off as well too, but this is the first time they have ever reported a loss, which is very historic!
  • Reply 90 of 156
    esummersesummers Posts: 953member


    Maybe it is just me, but I would love a fridge that could automatically toast frozen bread...  However a tablet with a keyboard just seems silly.

  • Reply 91 of 156
    mauszmausz Posts: 243member

    Quote:

    Originally Posted by tyler82 View Post





    I understood the concept, which is quite simple. They still paid for the house, and if you downstream far enough actual money is involved, so money is lost somewhere, and in this case lots of it, unless someone gifted Microsoft a 6 billion dollar asset. I assume MS has made huge investments before and they probably didnt pay off as well too, but this is the first time they have ever reported a loss, which is very historic!


     


    Just because they did it all at once...


     


    Normally when you write something off, you do this over a certain period. If they had written it off in 5 years this would have meant they had to write off 310mln each quarter. As the net profit this quarter was 6.7billion, with a 5 year write-off this would have been 6.4 billion profit this quarter (Which is up from 5.9billion same quarter last year).


     


    To quote engadget : "Even with the aQuantive related hit, Redmond still managed to post a net income of $16.98 billion for the year.". The next quarter (if it's the same, which it won't be) will see a 6+ billion net profit again as there is no sign of a significant decline. So the next year should probably see a 24 billion net income for the year... This not even taking into account the revenue actually increased and the introduction of windows 8 (desktop, tablets and smartphones) will probably see this trend continue if you like it or not.


     


    So no, MS is not doomed (and neither is Apple ;). They are both doing quite well.


     


    Just my 2 ct's worth

  • Reply 92 of 156
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by Hellacool View Post





    When you have someone "over a barrel" you do not offer joint licensing. Keep dreaming, you make way to many assumptions in your post. Considering you are not Bill Gates, kind of hard to speak on his behalf.


     


    You're over a barrel when you're already facing the government who is accusing you of abusing a monopoly position in the market place.


     


    And at the rate Apple was burning money, that $150million wouldn't have made any difference at all. What Jobs wanted (and got) was time to get his house in order. He needed Office to keep the Mac platform viable. Now? I'm not so sure.

  • Reply 93 of 156
    tyler82tyler82 Posts: 1,103member
    mausz wrote: »
    Just because they did it all at once...

    Normally when you write something off, you do this over a certain period. If they had written it off in 5 years this would have meant they had to write off 310mln each quarter. As the net profit this quarter was 6.7billion, with a 5 year write-off this would have been 6.4 billion profit this quarter (Which is up from 5.9billion same quarter last year).

    To quote engadget : "Even with the aQuantive related hit, Redmond still managed to post a net income of $16.98 billion for the year.". The next quarter (if it's the same, which it won't be) will see a 6+ billion net profit again as there is no sign of a significant decline. So the next year should probably see a 24 billion net income for the year... This not even taking into account the revenue actually increased and the introduction of windows 8 (desktop, tablets and smartphones) will probably see this trend continue if you like it or not.

    So no, MS is not doomed (and neither is Apple ;). They are both doing quite well.

    Just my 2 ct's worth

    Then why would they write it all off like this at once and face all this negative publicity if the company were headed in the right direction?
  • Reply 94 of 156
    rogifanrogifan Posts: 10,669member
    macxpress wrote: »
    Maybe its not the end of Microsoft, but a loss is a loss. It doesn't matter how you try and spin it. If you overdraw your bank account by $10, it doesn't matter how you do it. Its still $-10.00 in your account. 
    MS stock was up over 2% in after hours trading.
  • Reply 95 of 156
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by tyler82 View Post





    I understood the concept, which is quite simple. They still paid for the house, and if you downstream far enough actual money is involved, so money is lost somewhere, and in this case lots of it, unless someone gifted Microsoft a 6 billion dollar asset. I assume MS has made huge investments before and they probably didnt pay off as well too, but this is the first time they have ever reported a loss, which is very historic!


     


    The loss isn't really that important. Without the charge then MS would have had one of their most successful quarters on record.


     


    No, the loss isn't important, but the reasons behind it don't bode well. They point to a management that sees the tides of change far too late, and then makes huge mistakes as they panic to change direction.

  • Reply 96 of 156
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by tyler82 View Post





    Then why would they write it all off like this at once and face all this negative publicity if the company were headed in the right direction?


     


     


    Would you like a tooth pulled in one quick tug, or would you prefer to have it drawn out slowly over several months?

  • Reply 97 of 156
    mauszmausz Posts: 243member

    Quote:

    Originally Posted by tyler82 View Post





    Then why would they write it all off like this at once and face all this negative publicity if the company were headed in the right direction?


     


    Because the time (sentiment) was right to do it know, instead of next quarter (which might see a decline as the last quarter before the windows 8 launch), and the quarter after that (the win8 launch).

  • Reply 98 of 156
    bugsnwbugsnw Posts: 717member


    Part of the problem is the upcoming Windows 8. I say, change it to Windows 11. That's one better than OS X.

  • Reply 99 of 156
    s4mb4s4mb4 Posts: 267member

    Quote:

    Originally Posted by christopher126 View Post


    I agree also....MS is now in the business of going out of business! Just like RIM, Yahoo, Nokia, and Dell! Crunch!



     


    lol, sure. Microsoft will go out of business... ha. Not in any of our life times. Microsoft is bigger than the auto industry which was bailed out by our goverment a few years back. Even if Microsoft wanted to go out of business, they would not be allowed too. Do you even realize just how important Microsoft is to the world. you may not like them, but banks, goverment agencies, wall street, etc, etc, are all running M$ products to control their industires. foolish statement.

  • Reply 100 of 156
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by s4mb4 View Post


     


    lol, sure. Microsoft will go out of business... ha. Not in any of our life times. Microsoft is bigger than the auto industry which was bailed out by our goverment a few years back. Even if Microsoft wanted to go out of business, they would not be allowed too. Do you even realize just how important Microsoft is to the world. you may not like them, but banks, goverment agencies, wall street, etc, etc, are all running M$ products to control their industires. foolish statement.



     


    Y'know, I think that could be true. I don't think they'd be allowed to fail.

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