Microsoft’s huge underperformance on mainland China market

Ballmer Bares China Travails [May 27, 2011]

Rampant piracy means Microsoft Corp.’s revenue in China this year will only be about 5% of what it gets in the U.S., even though personal-computer sales in the two countries are almost equal, Chief Executive Steve Ballmertold employees in a meeting here.

Mr. Ballmer’s candid remarks provided a glimpse at the software giant’s struggle with piracy in what will soon be the world’s largest PC market. In China, copies of Microsoft’s core Office and Windows programs are still available on street corners for $2 or $3 each, a fraction of their retail price, despite efforts by the company to curb theft.

In his address to employees at the company’s new Beijing offices, Mr. Ballmer said Microsoft’s revenue per personal computer sold in China is only about a sixth of the amount it gets in India. He noted that Microsoft’s total revenue in China, population 1.3 billion, is less than what it gets in the Netherlands, a country of fewer than 17 million.

“We’re literally talking about an opportunity that is billions of dollars today” if China’s intellectual property rights protection were at the level of India’s, Mr. Ballmer said Wednesday in Beijing. … PC sales in China will be “as big as the U.S. market this year,” he said, yet “our revenue in China will be about a twentieth of our revenue in the United States.”

The statement suggests Microsoft’s revenue in China is close to $2 billion. For the fiscal year ended June 30, 2010, Microsoft reported U.S. revenue of $36.2 billion out of a world-wide total of $62.5 billion.

Advertisements

About Nacsa Sándor

Lazure Kft. • infokommunikációs felhő szakértés • high-tech marketing • elérhetőség: snacsa@live.com Okleveles villamos és automatizálási mérnök (1971) Munkahelyek: Microsoft, EMC, Compaq és Digital veterán. Korábban magyar cégek (GDS Szoftver, Computrend, SzáMOK, OLAJTERV). Jelenleg Lazure Kft. Amire szakmailag büszke vagyok (időrendben visszafelé): – Microsoft .NET 1.0 … .NET 3.5 és Visual Studio Team System bevezetések Magyarországon (2000 — 2008) – Digital Alpha technológia vezető adatközponti és vállalati szerver platformmá tétele (másokkal együttes csapat tagjaként) Magyarországon (1993 — 1998) – Koncepcionális modellezés (ma használatos elnevezéssel: domain-driven design) az objektum-orientált programozással kombinált módon (1985 — 1993) – Poszt-graduális képzés a miniszámítógépes szoftverfejlesztés, konkurrens (párhuzamos) programozás és más témákban (1973 — 1984) Az utóbbi időben általam művelt területek: ld. lazure2.wordpress.com (Experiencing the Cloud) – Predictive strategies based on the cyclical nature of the ICT development (also based on my previous findings during the period of 1978 — 1990) – User Experience Design for the Cloud – Marketing Communications based on the Cloud
This entry was posted in Geopolitics and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s