Microsoft losing money on Pocket PC

[Foo Fighter]

No big surprise here, but an interesting look at Microsoft's recent earnings report shows they are losing quite a bit of money on the Mobility division (which includes PPC, Smartphone and other CE derivatives). 33 million dollars to be exact. It's even worse for the MSN division...97 million. YIKES! 8O

http://www.wininformant.com/Articles/Index.cfm?ArticleID=27292

[ThomasC22]

Well, two things to consider...

First, as you pointed out with the MSN division, Microsoft is waisting a lot more money on causes that don't stand half the chance that the PocketPC platform does.

and Second, controlling the platforms that WinCE is targeted at is VERY important to Microsoft. They worked very hard to control the Desktop PC and the Web and, in their eyes, these other markets could still take all that away (although for my money the Cell. phone will never be the primary internet device people use, but who knows!)

So, although it is still losing money, I don't think that is such a big thing just yet. Now a few years from now when Microsoft realizes that they aren't going to control the Cell. phone/PDA industry like they did the PDA industry and have to start looking for another way to generate revenue from this segment then there will be trouble. (since there current plan is mass adoption with a small profit margin)