Bonum Certa Men Certa

Windows Profit Declines Sharply Because of Competition From GNU/Linux

Old building



Summary: Slowly but surely, Free software breaks Windows and other Microsoft platforms by lowering their market value and thus hurting Microsoft's cashflow

ONE of our sceptical readers has raised an important matter in IRC yesterday. By looking back at some numbers he claims to have found more proof that Vista 7 does not succeed in the marketplace, contrary to these ludicrous claims that "Windows 7 might be a massive commercial success" (utter BS from Engadget, no offence intended). We'll get to the pertinent details in a moment, not before pointing out that our informant from Sweden, Mikko, claims based on this article that "[S]ilverlight on the web is dead [...] Ballmer states that Silverlight is now pretty much strictly a client, non-cross platform thing, while explicitly stating that when it comes to doing something universal, "the world's gone HTML5"." So, we were right about Silverlight all along [1, 2, 3, 4], but that's a separate story.



Mikko says he "thinks that there's only bad journalism on Engadget" and we too wrote about the subject. Microsoft even gave this publication an expensive new laptop with Vista 7 (pre-beta) preinstalled so that it can praise Vista 7 before anyone else gets to see it. It's an exercise of PR.

Windows undoubtedly has a margins problem. Mainstream publications that we cited recently say it clearly as it's not hard to see. And looking at the source our reader cites, there is this MSFT analysis (Q1 of 2010) and one particular image that says it all. It's all big minuses for Microsoft's cash cows too.

Our reader responded by saying: "Record numbers of sales but 52% decline in income? Wow!

"If Microsoft's sales have been flat of declining, it is no wonder they have gone from virtual dominance to 68% of all units today. 68% is a Vista 7 channel stuffing number, and the actual number is probably greater than that. That is, more than 32% of desktop computers are shipped without Windows..."

As we have shown before, Windows profits declined over the years. Profit fell by more than half based on the above, but income aside, revenue is down 39% too for Windows. That's pretty shocking unless there's a snag to be taken into account.

Our reader summarised by saying that "you can't see the reports, sadly but the SEC will serve them to you... I was more interested in finding the number of licenses Microsoft has sold as a fraction of world PC shipments. Both are slippery numbers, with IDC providing most of the published PC shipment figures to Microsoft boosters and few hits on license numbers." GNU/Linux is one cause of the stated declines. Microsoft is forced to lower prices to remain competitive. This may help explain the FUD attacks we've been seeing recently. One talking point is about GNU/Linux being "fragmented", which is basically a negative word for "diverse". ""Fragmented" is a proprietary spectacles view," explained Groklaw some days ago in relation to Android, and "[p]eople say that about GNU/Linux too. But what they miss is this: you can do whatever you want. That is a wonderful feeling, and it leads to superfast development, not to mention a lot of fun."

Comments

Recent Techrights' Posts

Defeating LLM Abuse (State-of-the-Art Plagiarism) in the Area of Linux and GNU, Free Software, BSD, Security and So On
The aim is to get them to stop using LLMs to rip off other people's work
Digital Sanitation Good Practices
leave behind Microsoftism
10 Days Ago Richard Stallman Gave a Long Interview in French (linuxfr.org)
English translation
Science, Not Fast Food/Junk Food
The commercial exploitation of users won't stop until users exercise full control over their software or - more broadly - their computing (including data)
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 18, 2025
IRC logs for Saturday, October 18, 2025
The Term "AI" is Not New and What Today's Media Calls "AI" Isn't Even AI
Only the hype was new... and totally artificial
Gemini Links 18/10/2025: "Planetary Rings", Steam, and PSU Replacement
Links for the day
Links 18/10/2025: Russell Vought in Charge, US Government Leans to Russia Again
Links for the day
Credit Where It's Due: LinuxConfig.org Quit Doing LLM Slop, Back to Original and Real Articles
We waited for a while to say this, now it seems conclusive
Of Note: UbuntuPIT Aware of Critics of Slop, Adds Disclosure of Use of LLMs
We appreciate the honesty
Links 18/10/2025: Madagascar's President Flees and ICE Arrests Protest Comedian Robby Roadsteamer
Links for the day
Richard Stallman Near the European Patent Office (EPO) in 3 Days From Now
It'll be a good opportunity for patent examiners to listen, ask questions, and maybe greet him in person
From Scholar to Booster of Slop (and Even Slop in His Own Blog)
We're going to keep an eye on future posts of his
End of Vista 10 Also Good News for the BSDs
There are many news sites that recommend trying GNU/Linux this month
What's Wrong With Liking Parrots or Birds as Pets?
They'd demonise people for speaking about freedom, no matter what they say or do
The Free Software Foundation, Which Has Appointed a 43-Year-Old President, is Looking to Add Another Board Member (or Treasurer)
expect the FSF to add more people
Richard Stallman Confirms Next Week's Talk at Technical University of Munich, We Urge EPO Staff to Attend
That's probably late enough for EPO staff to attend after work
Gemini Links 18/10/2025: Notifications and Geminaut
Links for the day
Many Red Hat People Are Leaving, But It'll Be Framed Publicly as Leaving IBM
Similarly, IBM layoffs (or "RAs" as they're called) include Red Hat layoffs
Expect More Waves of Microsoft Layoffs This Month (at Least Two Rounds Confirmed Already)
From what we can gather, assuming the recent rumours about XBox are true, there will be at least 3 waves of Microsoft layoffs this month alone
Security Issues in Cisco and Jenkins Passed Off as "Linux" Problems
Fear, Uncertainty, Doubt (FUD) tactics
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 17, 2025
IRC logs for Friday, October 17, 2025
[Video] Dr. Richard Stallman at Technické Univerzitě v Liberci
New/via libre-liberec.cz
Slopwatch: LinuxSecurity, Linux Journal (Slashdot Media), UbuntuPIT, and Google News (Noise)
egregious plagiarism
Links 17/10/2025: Better Answers Sought After Air Crashes, "China Fans Patriotic Sentiment as Trade War With U.S. Heats Up"
Links for the day
Security is Desirable, But Not When the Term Security is Misused to Imply Centralisation of "Trust" (Whose?)
'Security' is not an excuse for vendor lock-in
Links 17/10/2025: Fentanylware (CheeTok) Causing Problems, Japanese Government Blasts Slop
Links for the day
The Linux Foundation Seems to Have Turned Linux.com Not Only Into a Spamfarm But Also LLM Slopfarm
it's polluting the Web, even important domains like Linux.com, with spam and LLM slop
Links 17/10/2025: UK’s Largest Breach Penalty and Windows TCO Examples
Links for the day
Go Watch Video About Librephone, Get Microsoft Ads
Very ethical company...
Campaign of Defamation Against the People Who Built NixOS (and Are Now Pushed Out From Their Own Project)
We've already grown familiar with - and resistant to - such tactics
Links 17/10/2025: Nestlé Crisis, Canada Post Versus 'Gig Economy' [sic] and Vista 11 Breaks Itself
Links for the day
Tux Machines Has Helped Separate Opinions/Analysis From News
In September 2023 we decided to split things apart and not repeat links in both sites
Tux Machines Has Improved Navigation of GNU/Linux and BSD News
Some more 'wiring' work
What a World Would Look Like If Everyone Used Free Software Only
Freedom is what matters, not "Open".
The Media Helps Microsoft, Amazon and Others (GAFAM and Beyond) Lie About Mass Layoffs Amid Valuation Bubble
The media, instead of saying that there's an "AI bubble" crashing the economy might instead choose the narrative of "jobs replaced by AI"
Bad Tempered? You Might Have Just Given Away That You're Losing the Argument
Brett Wilson LLP is fully aware that it is being investigated
Richard Stallman (RMS) is a Target of Defamation Campaigns Because of His Views on Software (But Politics Are the Excuse for Defaming Him)
Here in this site we try to refrain from politics, except in Daily Links
End of Vista 10 and Rise of GNU/Linux as Client Side Operating System
It seems certain GNU/Linux will grow in popularity over time
Taking Stock of a Week's Worth of EPO Leaks
We remain committed to exposing EPO corruption as long as it keeps happening
Mathieu Parreaux claims FINMA knew since day one
Reprinted with permission from Daniel Pocock
Calumny, Libel, Joerg Jaspert & debian-private untouchable cyberbullies
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, October 16, 2025
IRC logs for Thursday, October 16, 2025
Techrights Turns 19 in 3 Weeks
coverage of suppressed topics and protecting all sources/whistleblowers
International E-Waste Day Same Day as End of Vista 10
message from Akira Urushibata
The EPO's Central Staff Committee Presents Evidence That Staff Compensation Lowered While the Office Increases Income by Illegally Granting Invalid Patents
These people become millionaires by doing illegal things
Second or Third Wave of Microsoft Mass Layoffs in October 2025, This Time Portugal
Those are just the ones we know about, there may be several more
'Help Net Security' (helpnetsecurity.com) May Have Become a Slopfarm as Well
Zeljka Zorz, Editor-in-Chief at Help Net Security, was reported to us
Gemini Links 17/10/2025: Rant About Network Solutions, Strange Anomaly on Lagrange
Links for the day