Microsoft Mobile And Embedded Devices Registers 58% Earnings Growth

[Kris Kumar]

http://www.microsoft.com/msft/earnings/FY04/earn_rel_q4_04.mspx

"Microsoft Corp. today announced revenue of $9.29 billion for the quarter ended June 30, 2004, a 15% increase over revenue of $8.07 billion for the same period in the prior year...Mobile and Embedded Devices operating loss was lower in the fourth quarter of fiscal 2004 compared to the prior year’s fourth quarter, due to growth in revenue and lower operating expenses...Unit volume increases drove revenue growth for fiscal 2004 over fiscal 2003 in all product lines. The growth was primarily due to the increase in the number of OEMs and mobile operators shipping Windows Mobile software for Smartphones, increases in share for our Pocket PC and embedded products and increased usage by existing customers of our MapPoint On Line Service. MED’s operating loss for fiscal 2004 decreased compared to fiscal 2003 due to growth in revenue..."

Microsoft reported strong earnings, and it seems like Mobile and Embedded Devices division is on track to become a profitable unit. It garnered a 58% growth and lowered losses by 19% for the fiscal 2004.

I had earlier watched a report on TV which stated that Microsoft's core money maker Windows Operating System had hit a plateau in terms of growth because of its monopoly in that market. And that Microsoft is looking to grow its business in new segments, one of which is the Smartphones.

Got any ideas for Microsoft, to help them grow more aggressively in the coming years? How about XBox Live style gaming on the Smartphones?

[Kris Kumar]

http://www.microsoft.com/msft/earnings/FY04/earn_rel_q4_04.mspx

"Microsoft Corp. today announced revenue of $9.29 billion for the quarter ended June 30, 2004, a 15% increase over revenue of $8.07 billion for the same period in the prior year...Mobile and Embedded Devices operating loss was lower in the fourth quarter of fiscal 2004 compared to the prior year’s fourth quarter, due to growth in revenue and lower operating expenses...Unit volume increases drove revenue growth for fiscal 2004 over fiscal 2003 in all product lines. The growth was primarily due to the increase in the number of OEMs and mobile operators shipping Windows Mobile software for Smartphones, increases in share for our Pocket PC and embedded products and increased usage by existing customers of our MapPoint On Line Service. MED’s operating loss for fiscal 2004 decreased compared to fiscal 2003 due to growth in revenue..."

Microsoft reported strong earnings, and it seems like Mobile and Embedded Devices division is on track to become a profitable unit. It garnered a 58% growth and lowered losses by 19% for the fiscal 2004.

I had earlier watched a report on TV which stated that Microsoft's core money maker Windows Operating System had hit a plateau in terms of growth because of its monopoly in that market. And that Microsoft is looking to grow its business in new segments, one of which is the Smartphones.

Got any ideas for Microsoft, to help them grow more aggressively in the coming years? How about XBox Live style gaming on the Smartphones?

[Kris Kumar]

Another interesting point, Microsoft fiscal year (almost) coincides with Smartphone Thoughts' anniversary. We will be growing together :-)

[Mike Temporale]

Originally Posted by Kris Kumar

Another interesting point, Microsoft fiscal year (almost) coincides with Smartphone Thoughts' anniversary. We will be growing together :-)

Coincidence, I think not. Not many people know this, but Jason Dunn is actually Microsoft's first attempt at AI. During a freak accident, the code was able to break free from the computer it was born on, and now lives on various computer systems in the in Calgary area. :lol:

[Mike Temporale]

Originally Posted by Kris Kumar

Got any ideas for Microsoft, to help them grow more aggressively in the coming years? How about XBox Live style gaming on the Smartphones?

I remember reading that Microsoft is working on bringing some of the xbox (classics?) to the Windows Mobile platform. Which means your idea is already in the works. :wink:

[mar2k]

Microsoft needs to get more than two North American carriers and more than two equipment OEMs to carry Smartphones. Right now we have one carrier tied to one equipment OEM which in turn is tied to one technology.

AT&T Wireless -> Motorola -> GSM
Verizon Wireless -> Sansung -> CDMA

That won't do much for the Smartphone market long term. There need to be some more players in the overall mix. It would be nice if an American carrier would embrace the concept of branding their own phones and get some of the Taiwanese OEMs to build Smartphones. This appears to be happening in Europe and Asia as we are starting to see several Smartphones come to market in those places from non-name brand companies.