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Vista helps Microsoft's quarterly profits rise 23 per cent

Money for old rope
Fri Oct 26 2007, 16:34

YOU HATE THEM, Charlie really hates them and even I sometimes have my doubts, but someone out there obviously doesn't and they're still handing over the readies to the company it's just so fashionable to hate.

Microsoft's Q1 profits are up 23 percent on last year at a stonking $4.29 billion, returning a dividend of 45 Cents a share. The company says sales of Halo 3, Windows and Office helped it beat Wall Street predictions. The news sent MS shares up 12 points in early trading.

Revenue for the period ended September 30th was up 27 percent to $13.76 billion from $10.81 billion last year, beating analyst forecasts by more than $1 billion.

Someone out there - or 88 million someones - bought a copy of Vista, 28 million of them in the last two months. This brought $4.14 billion in revenue in the quarter, making the Vista doom mongers look a tad silly. Sales of high-end Vista SKUs were the most popular.

Office 2K7 sales were up 20 percent to $4.11 billion, while Halo 3 and the Xbox 360 generated a profit of $165 million in the quarter with 1.8 million Xbox 360 consoles sold.

Accounting voles put down their spectacles and predicted annual earnings of $1.78 to $1.81 per share on revenues between $58.8 and $59.7 billion, some $2 billion up on earlier estimates. µ

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Comments
Give them a break!

Microsoft products have their problems but the fact is majority of the world do like their products, they are easy to use, accessible and simple really.
I have used many versions and editions of linux and none are ever in my mind true replacements, there is always something you need on microsoft or something that is just down right easier! and yes, they get security bugs but the patch them in a short amount of time!
and if people really didn't want to buy microsoft they wouldn't, maybe you linux extremists should keep developing your idea, great if one day it is a proper replacement, but till then.....

posted by : Ben, 21 November 2007 Complain about this comment
Im sure...

IS microsoft really truly honest about the way they made their profit...??

Really...common....88million usuers bought vista!!??

Load of krap...


posted by : Robbie, 29 October 2007 Complain about this comment
DRM Rootkit OS

Microsoft Vista FTL

posted by : Shakey, 28 October 2007 Complain about this comment
I heart Microsoft

The Inq is certainly a bastion for Microsoft hatred. I love Microsoft. I love the XBox 360. I love Vista. I even love Bill Gates' hairdo.

posted by : Spaceboat, 28 October 2007 Complain about this comment
right on...

Randy has it right on.

And to add to that point the most classic response I hear from people is that MS is bad because it has more bugs and holes. Well got news for you. If your Open Source goodness were #1, I'm pretty sure the crackers and hackers would spend months finding all the holes in that software. But since you arn't #1 why would anyone even think about waisting time trying to hack something nobody uses?

What we got here are a bunch of liberal commies who think the world would be better if business were gone, jobs were gone, and all that was left was a social government check, some pot, and open source software to play games on.

posted by : Matt, 28 October 2007 Complain about this comment
Only 88 million sold?

The world sells about 250 million PCs each year. If they sold 88 million copies of Vista in 10 months they could have sold 10/12 of 250 million copies, about 200 million. That makes Vista a big flop, I say. Vista cannot compete with a 7 year-old OS that was obsolete when it was released in 2001.

posted by : Robert Pogson, 27 October 2007 Complain about this comment
How much vista sucks and how microsoft makes money

Hi All Readers,
I just bought a copy of windows vista indirectly becos it came bundled with this new 12 inch lenovo IBM whatever with Chinese simplified. I wiped the hard disk and put my own copy windows xp prof english and now to my surprise broadcom wireless does not work fine anymore. So see how i am forced to buy two versions of bloatware. Well in this case this laptop was for my friend anyway thats another topic. 
however from above you see microsoft effectively sold two copies of OS. so it earned more money.

Second vista is so slow compared to XP it sucks for me.
NOTE: this laptop came with both XP and Vista drivers officially in the CD pack. But it does now work perfectly with one OS.

posted by : Mohiuddin Khan Inamdar, 27 October 2007 Complain about this comment
RE Thomas, etc.

Open Office? Ewwww....
AbiWord :)

Anyway, I believe open source will eventually own all. But I don't know when or care when, cause I'm using it right now and it don't make a difference to me if no-one else runs it as far as I'm concerned.

Debian based Linux is so much easier than Windows. Software keeps up to date automatically. Yeay Linux! :-)

And the price is right!

posted by : Ben, 27 October 2007 Complain about this comment
88 million Vistas out of 200 million PCs?

M$ is getting Vista out on only half the PCs sold this year. That is pretty poor for an OS whose closest competitor was XP, obsolete in 2001.

posted by : Robert Pogson, 27 October 2007 Complain about this comment
Forced Profits?

What choice do many have when buying a new PC??? Even the few builders who allow choice and offer XP charge more for it. Geez, I wonder if MS is behind that.

Let's face it....if it wasn't for the pre-loaded Vista sales MS would have lost truck loads of money on Vista.

posted by : Ken, 27 October 2007 Complain about this comment
Back to Nr 1 :)

Looks like Bill Gates is determined to make sure that mexican telecomm guy won't get to Nº1 as the welthiest man in the world :)

posted by : Luis Costa, 26 October 2007 Complain about this comment
Way to Go Vole!!!

Reports of Microsoft's demise are greatly exaggerated.

Nah nah nah nah nah nah.

posted by : Super Vole, 26 October 2007 Complain about this comment
This is Only 1/2 Step.

Todays Profit came from CUT Back Versions of Ultimate, like Starter. Gave OEM Brand Name, Yet Hardware still is in Catch up Race.

Then theres SEVEN, How will it beta on Finalized ULTIMATE Equipment? Got to be Third Boost (Massive Core) of Sales & phase out of under 1gb set, totally, leaving todays new units still much better than retireing XP units, yet that HARDWARE to RUN ULTIMATE is now PLAYING What if to LEOPARD. So Be Warrned, Many want safety & comfort of Leopard at home & Business sector hasn't got Goods Yet.LEOPARD,LEOPARD,LEOPARD.

Signed:PHYSICIAN THOMAS STEWART VON DRASHEK M.D.


posted by : ULTIE_TOM, 26 October 2007 Complain about this comment
Here we go again...

Oooga boooga, Linux GOOOD, Microsoft BAAAD, r0arrrr.

Seriously you open sauce fan boys need to chill with the MS hate and just understand that most of the world's computer users don't want to compile their own Solitare game if they want to play or care about fine tuning their IPtable so only you and your equally geeky brother can do remote login and host CS Source servers.

Microsoft software may not be the most l33t and they certainly aren't the most standards conformed of the bunch; HOWEVER, that being said I do think they make computing more accessible to the general public without trying to dominate and control all aspects of its OS's software library (read: Apple).

I can pop the CD in, load Windows in, no fuss. Almost any kind of software you can think of is more likely than not on Windows and thousands more freeware utilities are available to download. I don't need to deal with over-chic, overpriced, overdesigned crap and I definitely don't want to deal with the inner workings of a program in order to use it and MOVE ON WITH LIFE...

Cars nuts won't mock your ride for not having polished ports or a modified ECU so don't mock our OS with your elitist nonsense.

posted by : Randy, 26 October 2007 Complain about this comment
Are the Vista sales really Vista sales?

Are they taking into account the Vista copies that used downgrade rights as Vista as well???

posted by : ToniCipriani, 26 October 2007 Complain about this comment
Xbox makes profit?

Microsoft has actually started making profit with Xboxs? Wow, that's something.

posted by : az, 26 October 2007 Complain about this comment
Microsoft earns $$ anyway

Even if Microsoft fired all employees tomorrow, they would still earn money for at least five more years. Almost every computer is sold with Windows, businesses are hopelessly dependent on Microsoft software, and will continue to pay for licenses. 

I bet Microsoft has already earned more money than they spent on the entire development process of Vista (MeII), just on Vista sales. This shows how grossly overpriced Vista is.

But since you jerks buys their software anyway, they will keep selling you crap for increasingly higher prices.

I, on the other hand, will keep using Linux and Open Office, and will continue to develop Microsoft software replacement on my spare time. 

I know many of you will laugh, but some time in the not to distant future, Open Source will replace all Microsoft Software. Why? Microsoft can't keep up with millions of developers around the world. Just look at the development of Ubuntu in the time frame of Vista (from nothing to better than said OS in half the time).

Open Source is standing on the shoulders of others, and that way it will eventually become better at Microsoft on all points. Maybe except at screwing customers.

Just my 2 cents.

- Thomas

posted by : Thomas, 26 October 2007 Complain about this comment
or it could be

or it could be halo and that on the gaming side of thing vole is doing pretty well for itselfs 

vista by itself made a porfit rise of 23% 
mmmmmmmmmmmmmmmmmmmm

posted by : eze, 26 October 2007 Complain about this comment
Vista profits

Considering the sheer commercial weight micro$oft can put on the market it's hardly surprising...

Usually I would go into some detail to make my point, but I have only one thing to say:

If you throw enough shit something will stick, even on glass.

posted by : Someone Special, 26 October 2007 Complain about this comment
No duh

Of course Xbox is making a profit. Even with their extended warranty--The thing is built so cheaply and is so over-priced that they can afford to replace it several times before they lose money.

posted by : Red Light, 26 October 2007 Complain about this comment
Duh!

When you've got a de facto monopoly, it's hard NOT to make money.

posted by : Carles Greene, 26 October 2007 Complain about this comment
Vista Sales? or XP Downgrades?

I think people are forgetting that a large portion of these are XP sales in reality. Businesses are all being sold a Vista lic under whatever program they're in yet 99% of these are still installing XP instead. Add home customers that get Vista and are downgraded to XP before the PC leaves the computer store and you have a whole lot of Vista sales that really are not Vista at all. I hope they just call it quits on this PIG and sell XP until the next rev (win7?). As a PC tech I can't find anything it does better than XP (no search crap don't count). Let's see, change your drivers and call MS...LOL. Terrible networking problems...(slow is non functional to me) ROFL. A completely abysmal driver situation (nobody wants to write a driver for an OS that could die on the vine...can't blame them)...LMAO. A simple install of RAdmin 3.0 on Vista caused me to have to re-install the OS it was so borked I couldn't even get back in...ROFLMAO. Tech calls up the wazzoo over UAC crap (yes the smart among us can turn it off...But your avg user...NOT). Nope, not laughing any more. It was funny how bad it was when it was only me trying to deal with a new OS. I half expect that on something new that's this big a change. But when it causes the phone to ring when it's off the hook (heh) the fun stops here. This OS isn't worth the .30 cents it would cost to burn a pirated copy, and don't even get me started on the price of this TURD. I've felt better after losing $400 in a slot machine in Vegas...Well ok, a lot of machines, and a few tables... :) At least it was FUN.

posted by : Nobody Special, 26 October 2007 Complain about this comment
get with it people

I agree with Randy, and also think that Mr. "PHYSICIAN THOMAS STEWART VON DRASHEK M.D." should put down the white coat for a little bit and learn how to speak English.

I personally like(or don't mind) MS software. I think it's easy to use, and like Randy said, I don't want to have to go through the Linux shell anytime I want to do something that I could do in a few clicks on XP or Vista. I also want to know what all the Vista hate is about; I have 64-bit Business(free from MSDN Academic Alliance) and it runs really good on my box. No blue screens, no lock ups, and I only lose about 100(that's right, only two zeroes) points in 3dMark06 from XP that I dual-boot with, including the fact that aero is running in the background.

Not to mention the server market; maybe I'll consider Linux distros a half-decent corporate OS once they can figure out how to integrate enterprise class apps across entire networks, such as AD and Exchange. Seriously people, it's one thing to have a beef against a company, but it's a completely different issue to do it because it's "fashionable."

posted by : Thruster, 26 October 2007 Complain about this comment
channel stuffing and holding back income

Vista adoption has actually been poor. Windows sales have not bumped up at all.
Microsoft held back "deferred income", then declared it at vista launch. They're also putting more Vista into the sales channel than is actually being sold on OEM machines.

How the deception works:
"Deferred Income". Joe public buys XP prior to release of Vista. He gets a "vista upgrade" voucher. At launch time, this is declared as "vista sale" whether or not the guy is running it.

Part two: joe public buys a computer with vista basic home on it. He hates it, buys XP and installs that. But it comes with a "vista licence".
So hey presto, TWO vista sales!

Obviously the lack of runaway success will eventually be known, but if they're having to go to these lengths to make the figures look good, then this is a seriously weak product.

posted by : jeez, 26 October 2007 Complain about this comment
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