Microsoft FY2016-Q2. Revenue $23.8 bn, Op Income $6.0 bn, Net profit $5.0 bn. Beating expectations AGAIN.

[DonFerrari]

Swordmasterman said:

DonFerrari said:

Mummelmann said:

That's how one can easily see how overpriced Apple products are; look at their insane profit margins on hardware and it becomes clear that customers are paying a whole lot for brand and not really for components.

Anyway, MS has always been a software company first and foremost, and that yields significantly more profits on average, for obvious reasons. I still remember fondly when I had to explain to a member on this very site that the development cost of games is not tied to how many copies you printed (yes, he actually tried to argue that).

Well, the margin on SW is ridiculous as well, but that is because they have very small cost for production.

On the discussion of dev cost. They could at most imply that when you expect a certain bracket of sales you calculate the cost to dev. And the cost to burn, print, package and distribute but they are very small.

The biggest costs are the Retailer's margin, is really a lot, is like paying the Tax for Sony, or Microsoft, and pay another Tax, for the Retailer, even more expensive than what they gave to Sony, or Microsoft.

Probably. Always thought all SW are too expensive by what they offer. Worse yet are professional ones. It seems like they don't charge by what they offer but by how much you end up profiting in you profession. Office was expensive but now at least home edition is ok. Adobe PS was ridiculously expensive but at least now home edition is ok. Autocad I don't know home edition but professional was completely unreal.