Microsoft has outsourced many jobs to other countries which have very low pay levels. Another case of business people not understanding that such actions hurt themselves, because it decreases the number of people who can afford to buy their products. Henry Ford figured this out for himself in the early 1900's, but the power elite today is too dumb to understand it. A result of pre-natal exposure to pollution?
http://www.msnbc.msn.com/id/32110738/ns/business-stocks_and_economy/
pdated 7:52 p.m. ET, Thurs., July 23, 2009
Microsoft Corp. said Thursday its profit in the last quarter plunged 29 percent because of weak computer sales, ending a fiscal year in which the software maker’s revenue fell for the first time since the company went public in 1986.
Microsoft’s revenue in the quarter was well short of analysts’ expectations, and its shares plummeted $2, or 7.8 percent, to $23.56 in after-hours trading. Before the earnings report the stock had gained 3.1 percent to close at $25.56.
The results reflected how Microsoft’s fortunes are tied to the PC industry, which is expected to sell fewer computers this year than last — the first such decline since 2001. Many buyers are holding on to their existing machines for longer than normal, partly to save money in the recession and partly because Microsoft is releasing a new operating system Oct. 22. Among consumers, the hottest segment of the PC market is in low-cost “netbooks,” which run Windows XP — a lower-profit product for Microsoft.
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