Mobile division of Microsoft profitable at last
January 27, 2006 [General] | By Edward J. R.
For the first time in history mobile division of Microsoft becomes profitable... however there are several doubts about these financial results:
- Financial results specified by Microsoft refer both to Windows Mobile phones and PDAs, but also to Portable Media Centers. Moreover they include also - very big part - revenues from embedded division that sells Windows CE, Windows XP Embedded and related tools and services. In other words: one can't say for sure to what extend Windows Mobile contributed to this result - all these results are much too much diluted.
- Outcome of lawsuit against Microsoft, that Visto corporation filed - is not certain yet. The fact of the matter is that there is not even one device available yet that would offer push e-mail - either preinstalled or as upgrade. It could be that manufacturers or distributors are too scared to release this upgrade... but moreover it may well be that Microsoft will be forced - by court order - to pay big amount of money to Visto and then financial results of mobile division would be negative and it would not be profitable yet for a long time...
As you can see below (marked by yellow and red color) in latest 3 months of 2005, Microsoft's mobile division had revenues of $101 million, out of which profit was $20 million.
Segment Revenue and Operating Income / (Loss)
(In millions) (Unaudited)
|
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
|
Revenue
|
2005
|
2004
|
|
2005
|
2004
|
|
|
|
Segments
|
|
|
|
|
|
|
|
Client
|
$3,459
|
$3,193
|
|
$6,646
|
$6,173
|
|
|
Server and Tools
|
2,907
|
2,542
|
|
5,438
|
4,783
|
|
|
Information Worker
|
2,979
|
2,825
|
|
5,677
|
5,420
|
|
|
Microsoft Business Solutions
|
242
|
207
|
|
423
|
363
|
|
|
MSN
|
593
|
606
|
|
1,157
|
1,165
|
|
|
Mobile and Embedded Devices
|
101
|
72
|
|
175
|
121
|
|
|
Home and Entertainment
|
1,556
|
1,373
|
|
2,062
|
1,982
|
|
|
|
|
|
|
|
|
|
|
$11,837
|
$10,818
|
|
$21,578
|
$20,007
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
|
Operating Income / (Loss)
|
2005
|
2004
|
|
2005
|
2004
|
|
|
|
Segments
|
|
|
|
|
|
|
|
Client
|
$2,638
|
$2,528
|
|
$5,210
|
$4,929
|
|
|
Server and Tools
|
1,099
|
947
|
|
2,006
|
1,655
|
|
|
Information Worker
|
2,101
|
2,065
|
|
4,047
|
3,986
|
|
|
Microsoft Business Solutions
|
10
|
(17)
|
|
(2)
|
(48)
|
|
|
MSN
|
58
|
130
|
|
140
|
209
|
|
|
Mobile and Embedded Devices
|
20
|
(12)
|
|
17
|
(41)
|
|
|
Home and Entertainment
|
(293)
|
55
|
|
(449)
|
(104)
|
|
|
Other
|
(976)
|
(947)
|
|
(2,266)
|
(2,343)
|
|
|
|
|
|
|
|
|
|
|
$4,657
|
$4,749
|
|
$8,703
|
$8,243
|
|
|
|
|
|
|
|
|
To learn more click here (Microsoft).
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