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Business Down for Some Large OEMs Despite Vista 7

Dell monitor logo



Summary: Dell suffers a drop in profits despite the glamorous hype and promises from Microsoft (upon releasing Vista 7)

Microsoft's financial decline carries on [1, 2, 3, 4] as Vista 7 fails to take a recessional rebound. There are numbers that Microsoft does not want the public to see, Acer says that Windows sales were flat despite Vista 7, and a couple of weeks ago, right after Microsoft's latest results that are dubious (Microsoft has debt), the Wall Street Journal published a report to say that business was stagnant or down for OEMs/computer makers despite the release of Vista 7.



Our reader Chips B. Malroy told us last night that there is more new evidence that Vista 7 could not have sold much. "The Dell article," he explains, "shows that people are buying cheaper computers now. That cannot be good for MS. At some point the OEM pain of companies like Dell, will start finding ways to cut the MS profit."

Dell profit drops despite Windows 7 PC rush



[...]

Its gross margin dropped to a relatively slim 16.6 percent as the holiday-related sales spike pushed it to sell 2 million more computers without as much profit as in the past.


It's all about margins and it's the fault of GNU/Linux. According to another new report, Microsoft is overcharging (£30 price hike):

Microsoft got its sums wrong on the price tag for the boxed version of Office Professional 2010, forcing it to hike the product by £30.


This is classic Microsoft. Time to "whack" Dell again?

"Bill [Gates] would go to a very senior person at these other OEMs whether it was DEC or Tandy or Compaq or whoever and yell at them or tell them it had to be this way, or if you don't do this we'll make sure our software doesn't run on your box. What do you do if you're one of these OEM guys? You're screwed. You can't have Microsoft not support your hardware so you better do what they say."

--McGregor, Bill Gates' colleague



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