And you wanna discuss whether Microsoft has a monopoly…?
Since i’ve got this discussion over and over with people here’s some data. Microsofts income margin for their total business is around 40-45%, but when you dig deeper into the reporting and get the data from the two business segments where they really have a monopoly the data get’s even more interesting.
Quarterly revenue from the three months ended Sept. 30 2002 showing the two most profitable segments:
Client operating systems: Turnover 2,892,000,000. Income 2,482,000,000. 85% income margin.
Applications (Office, etc.): Turnover 2,385,000,000. Income 1,879,000,000. 79% income margin.
Any company in a mature competitive industry would die for income margins around 10-15%. Anyone ever seen income margin levels like these before?