Among the "Big Three" of technology- namely Apple, Google and Microsoft- the news is not good for the folks out at Redmond. Somehow Apple, despite sagging computer sales and a flat iPod market, managed to make some cash at their uber popular iPhone apps store. With the many things that Google is into, it is not hard to figure out how they were up by almost 8.9%.
However, for the first time in 23 years, what was once the supersized growth stock of Microsoft managed a really bad quarter. We're talking a 32% profit plunge!!! Although it is not shocking, given that many folks are still using Windows XP, very few (more like nobody) is upgrading to Windows Vista, and they only make $15 on each Win XP netbook that sells. On top of that, Microsoft Office's marketshare has been eroded with online offerings like Google Docs and freeware like OpenOffice.
Can Windows 7 reverse this trend? Probably but it is still months away, and may not even come out in 2009. Needless to say, with these types of numbers, I can see why the Zune is not the numero uno priority at Microsoft these days.