The Orange View (on hiatus) Because Apple is great but it isn't perfect

9Mar/11Off

The billion dollar iPad hole in Microsoft’s bottom line

On the heels of reports that tablet sales are significantly eating into PC sales, Charles Arthur at The Guardian estimates just how much lost money that will equal for Microsoft: about $1.5 billion of lost revenue and $1.1 billion of profits up in smoke. Ouch. As Arthur notes, departed software czar Ray Ozzie tried to warn the 'softies but they didn't listen.

And Microsoft still doesn't have a tablet strategy worthy of the name. It won't allow Windows Phone 7 on tablets. Nobody (to close enough approximation) is buying Windows 7 tablets.

Are PCs going away? No. But that's like asking whether radio went away when TV came along. It didn't – but the time and effort spent on listening to it was quite rapidly diverted to the new medium. Or you could look at it like VHS video v DVDs: VHS hung on pretty well, but DVDs turned out to be a better way to do precisely the same thing.

And in the meantime, there will be a billion-dollar hole in Microsoft's profits this year because it hasn't worked out what it should do. The price of not listening to Ray Ozzie is turning out to be high.

-The Guardian Tech Blog, March 8, 2011

Posted by Aaron Pressman

Filed under: link Comments Off
Comments (0) Trackbacks (0)

Sorry, the comment form is closed at this time.

Trackbacks are disabled.