Recapping the big story just 3 days ago ...Microsoft: $19.90 billion in revenue for Q2 2013; $900 million charge for Surface RT ( NeoWin 2013-07-18 )Microsoft takes $900 million charge on unsold Surface RT tablets ( TechSpot 2013-07-19 )Microsoft's Failed Surface RT Strategy Leads to $900 Million Charge on Unsold Inventory ( Maximum PC 2013-07-19 )
Microsoft released their FY2013 results, numbers which are heavily massaged as they end their accounting year and now move into FY2014. Even after juggling numbers around and spinning it as positive, the overall negative undertow was obvious to all except die-hard MicroZealots at NeoWin. In that comment thread one sensible commenter tries in vain to clue them in on what it all means and what Wall Street will do later in the day. I mean in post after post he tries to tell them that this is bad news and not spin-able, and that the market is not going to like it. Note that the NeoWin headline itself is ambiguous, stressing revenue instead of profit, and using "charge" which is not language understandable by most fanboys.Slight digression here
, there was one typical comment in there rationalizing Microsoft's collection of extortion money from Android device makers ...
Does it matter? Collecting money from Android is a legitimate part of their business. They practically birthed the tech in Android, why shouldn't they be able to count it?
Yeah right, Microsoft "birthed" Android only if he means by screwing up Windows people feel comfortable looking elsewhere. As for the patents, keep in mind that no-one at MicroApple
, who both are busy pirates collecting duties from Android, are actually talking about what they claim to have invented, and the extortees are not talking because of some kind of gag order. So we don't really know what Microsoft and Apple are extorting for sure. There are strong suspicions that the file system is claimed by Microsoft and some other mobile functions by Apple, but they successfully extort them and then get them to hush up about it. Wikipedia currently has this
In October 2011, Microsoft said they had signed patent license agreements with ten Android device manufacturers, whose products account for 55% of the worldwide revenue for Android devices. These include Samsung and HTC. Samsung's patent settlement with Microsoft includes an agreement that Samsung will allocate more resources to developing and marketing phones running Microsoft's Windows Phone operating system.
Google has publicly expressed its frustration for the current patent landscape in the United States, accusing Apple, Oracle and Microsoft of trying to take down Android through patent litigation, rather than innovating and competing with better products and services.
Clearly Microsoft has went right back to their old ways of Standard Oil style anticompetitive monopolistic practices. Their "agreement" extracted by extorting Samsung is illustrative, getting them to promise to build devices using Microsoft's pOS because nobody wants them by choice. I don't know if Microsoft and Apple even realize it but they are really setting themselves up for a momentous fall. We can be certain that Google is not happy about this, nor the hypocritical Scroogle campaign, so they will have something up their sleeve, perhaps even writing their own royalty-free file system. The bad-will about these patent issues will also return to bite Ballmer's big fat butt because when you live by the patent suit, you also die by it. All it will take is the next big case that reverses this extortion and the house of cards will come tumbling down. It is within the realm of possibility that a future without Apple and Microsoft will arrive, and they will deserve all that comes with it.Now back to the earnings report
. After the denial of any whiff of bad news in the announcement, and despite the warnings from one intrepid commenter they stood fast on their religious belief in their MicroGod. Then reality hit them int their face as it always does ...Microsoft Shares Tumble On Q4 Earnings Miss ( Forbes 2013-07-18 )
Its been a rough quarter for Microsoft.
Between the recent NSA revelations, the botched reveal of the Xbox One, and the departure of Xbox chief Don Mattrick, the company has faced one speed bump after another.
In todays earnings report, Microsoft had more bad news.
The tech giants Q4 earnings took a hit thanks to a $900 million writedown (or 7 cents per share) from slashed prices on its Surface RT tablet, just one factor that led to the company missing its fourth quarter expectations for profit and revenue.
I said a while back that the big Microsoft re-org thingie was nothing more than a preemptive strike to tamp down negative reactions on Wall Street. It is obvious to me that they had their preliminary FY2013 numbers a month ago and proceeded to do everything they could think of, including re-arranging the deck chairs, to keep the stock afloat.
NeoWin eventually posted a more accurate headline in the followup ...Microsoft stock price down 11.40 percent in trading Friday ( NeoWin 2013-07-19 )
Although with a clear expression of head-scratching disbelief seen in the opening paragraph ...
You would think that champagne bottles would be popping if you owned stock in a company that announced it had $19.90 billion in revenue and a net profit of $4.97 billion for its last fiscal quarter, which is what Microsoft reported for its second quarter 2013 calendar earnings on Thursday.
It's all kinda funny because this was completely predictable if you read that first article at the top because they obviously had prepared all along to spin it in their favor. Such are the ways of the fanboy cult.
Microsoft also eventually had to respond to the obvious.Microsoft CFO Amy Hood: "We know we have to do better" ( NeoWin 2013-07-19 )
But it's just more gobbledygook really. They have learned nothing.