money pit
CHART OF THE DAY: The Microsoft Online Money Pit (MSFT)
Source: http://www.businessinsider.com/chart-of-the-day-microsoft-online-income-2013-4
Microsoft‘s money pit is not nearly as nasty as it used to be!
This quarter it reported a $262 million loss. For most companies this would be terrifying. For Microsoft, it’s good news. It means Microsoft’s online division is getting much better.
The last time Microsoft’s online operation looked like this was five years ago.
Microsoft’s head of investor relations noted in a call with us that revenue was up 18% on a year-over-year basis, with online advertising growing 22%.
We asked when this loss would be zero. He dodged the question saying Microsoft will continue to be responsible, but it might have to make investments in cloud and service infrastructure.
Microsoft’s Online Business Is Just Awful (MSFT)
Source: http://www.businessinsider.com/chart-of-the-day-microsofts-online-operating-income-2012-7
There is a slight wrinkle to this quarter’s edition of the Microsoft online money pit chart.
The company took a $6.2 billion writedown from its failed aQuantive acquisition, which means we get an even more ridiculous looking than usual chart.
If you back out the writedown, Microsoft had an operating loss of $472 million. One quarter Microsoft is going to get this turned around. We can’t wait.
Other than the online division, the company is doing very well. It beat on EPS, and just barely missed on revenue.
Follow the Chart Of The Day on Twitter: @chartoftheday
How Apple’s Business Completely Changed
Source: http://www.businessinsider.com/how-apples-business-completely-changed-2012-1
What a difference a few years makes. Four years ago, Apple analysts fretted over iPod shipments and computer sales when an earnings call rolled around. All the early chatter is now focused on whether surging iPhone and iPad sales will even be enough to meet soaring expectations.
The iPad, only a rumor two years ago, accounted for 24% of revenue last quarter. The iPhone, meanwhile, has jumped from 10% of revenue at the beginning of 2008 to 39% last quarter–and nearly 50% at the beginning of last year. With the tablet market still in its infancy and huge opportunities still available in mobile, the shift in Apple’s revenues has only just begun. All of which should futher underline the changing nature of their business: Apple is essentially a mobile computing company.
Which is not to say the rest of the company isn’t growing. Mac shipments were up 20.7% year-over-year in the fourth quarter, according to Gartner–even as the rest of the PC market fell 5.9%. It’s just that they have not kept up with the astronomic growth of the company’s mobile products.
See our preview of Apple’s earnings here→
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See Also:
- THE NEW NORMAL: The Changing Tech IPO Market
- EBAY’S TRANSFORMATION: When Do We Start Calling eBay A Payments Company?
- BING: Microsoft’s Still Throwing Billions Of Dollars A Year Into This Online Money Pit
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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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