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To: damniseedemons who wrote (22378)1/9/1999 10:00:00 PM
From: nommedeguerre  Read Replies (1) | Respond to of 24154
 
Sal,

>>The reason that Microsoft is so profitable is that they're blessed by operating in a highly profitable and scaleable industry.

You left out MSFT's lack of support costs and the fact that they are blessed by the only industry which is not yet liable for the performance of its products or the claims attributed to them by the manufacturer. Also, there's that little thing with having a leveraged monopoly which can make those net margins really sing.

Cheers,

Norm




To: damniseedemons who wrote (22378)1/11/1999 9:28:00 AM
From: Harvey Allen  Read Replies (1) | Respond to of 24154
 
Microfraud?

A Microsoft executive
accuses the company of
cooking its books. by
Mike Romano

seattleweekly.com

Sal- This is not really anything new but the way it
was handled makes one think that there is some
institutional disfunction caused by the character
of it's leader.

Harvey



To: damniseedemons who wrote (22378)1/11/1999 4:36:00 PM
From: Keith Hankin  Read Replies (2) | Respond to of 24154
 
The reason that Microsoft is so profitable is that they're blessed by operating in a highly
profitable and scaleable industry. Software has high fixed-costs (R&D), after which the variable
costs are minimal. The more they sell, the more profitable they become (as that fixed cost is
spread upon more software units).


Having the OS monopoly is one of the main reasons why MSFT is so hugely profitable. If there was a competing OS with 35% marketshare, with MSFT having 55% marketshare, MSFT would have to reduce their prices.