Feeds

Microsoft sees sluggish PC growth ahead

No repeat of fiscal 2004

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

In Microsoft's latest SEC filing again, Redmond warns that next year won't see the handsome growth in PC sales that it has seen over the past twelve months.

Fiscal year 2004 in Redmond ended in June, and Microsoft saw revenues soar on the back of 13 per cent unit growth in PC sales. It says it doesn't expect similar growth next year. The prediction echoes the mood of the gloomy outlook offered by Intel last week, although the chip giant was careful not to say which way it expected unit sales to fall. Recent semiconductor studies say the growth of the past two years will peak in the next twelve months.

Microsoft says it sees a "significant" threat from Linux although the boilerplate wording has changed little from recent filings. Sixteen months ago Microsoft's ass-covering investor warning stated:

"To the extent the Open Source model gains increasing market acceptance, sales of the Company's products may decline, the Company may have to reduce the prices it charges for its products, and revenues and operating margins may consequently decline."

Now it warns, "To the extent open-source software products gain increasing market acceptance, sales of our products may decline, which could result in a reduction in our revenue and operating margins."

Plus ça change? Well, not necessarily. Microsoft's retention of contracts such as Newham and the Royal Navy have been hard fought. Unless such users display particularly inept negotiating tactics - something you can never rule out with the public sector - Microsoft can either retain market share or high margins, but not both. ®

Related stories

MS beanies worry about Linux, suits, nasty governments
OSS torpedoed: Royal Navy will run on Windows for Warships
Newham and Microsoft sign 10-yr deal
2004 – the year Microsoft's prices bend, buckle or break?
Windows pricing begins to buckle

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.