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Submission + - Behind the Microsoft write-off of Nokia->

UnknowingFool writes: Previously Microsoft had announced that they write-off the Nokia purchase for $7.6B in the last quarter. In doing so Microsoft would create only the third unprofitable quarter in the company's history. Released on July 31, new financial documents detail some of the reasoning and financials behind this decision. At the core of the problem was that the Phone Hardware business was only worth $116M after adjusting for costs and market factors. One of those factors was poor sales of Nokia handhelds in 2015. Financially it made more sense to write it all off.

the carrying value of Phone Hardware goodwill exceeded its estimated fair value. Accordingly, we recorded a goodwill impairment charge of $5.1 billion, reducing Phone Hardware’s goodwill from $5.4 billion to $116 million


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Comment Re:bullshit translator go: (Score 1) 119

Stop. stop with the fever-dream of a phone. you lost seven billion dollars on the phone thing. real people lost jobs because of your half-assed insistance on dominating all markets forever.

Not only that but Microsoft held a funeral for the iPhone when they launched the Windows Phone. Hubris?

Comment Re:Microsoft tried the wrong business model (Score 1) 249

Apple is a software company fundamentally. What makes a mac different from a PC is OS X. What makes an iPhone different from an Android phone is iOS. The hardware is basically the same underneath. So Apple sells you their software but won't sell it without a fairly nice device to go along with it. However an important feature in this is that Apple has design chops and retail experience in their DNA. Microsoft doesn't. So Microsoft has to replicate what Apple is doing without the design culture that makes Apple successful at doing it.

I'd have to disagree with this. While the major components of a PC are no longer designed and built by the manufacturer (CPU, memory, drives), Apple does do more with hardware design than the next manufacturer. Sure in PCs, they don't design their own CPUs but they still design motherboards and the overall case. While the like of Dell and HP and Lenovo offer very bland models with little differences, Apple does make some interesting design choices in their computers.

For example, the Macbook Air is Apple's answer to the netbook. Instead of shrinking the whole laptop in all dimensions (and making it hard to type on), Apple went thin. Now that seems like there isn't much engineering but to make it thin, Apple did have to design motherboards much smaller, use customized Intel chips, use SSD instead of HDD in laptops years before it was the norm, remove many I/O plugs from the case. These were not without criticism but years later and after refinement, the MacBook Air is the direction almost all PC manufacturers are going with.

Another example is the MacPro. The newest version is dramatically different than other workstations. First of all, it's not boxy. There's little expansion. It uses PCIe SSD drives. Cooling wise everything does up instead of through and the main components are separated on 3 different boards instead one motherboard.

Controlling the software does make Apple better at integration but Apple does make an attempt at hardware differentiation.

Comment Re:Another round of layoffs (Score 2) 249

And the yearly stacked ranking and purging wasn't enough? MS problem was that they were in the 90s mindset where they could buy themselves into new areas by buying companies. They got good people but the problem was they didn't know what to do with those companies.

Comment Re:Wow ... (Score 1) 249

The acquisition never made sense because Microsoft's experience at computer hardware was abysmal. Sure their peripherals were decent but when they tried to make something more complicated like an Xbox 360, they had to write off billions in defects. Also MS made their money on software licensing. Apple at least made computers before they went into the mobile device market.

Submission + - Microsoft to layoff 7,800 and write-off $7.6B from Nokia acquisition->

UnknowingFool writes: Less than 2 years after its $7.2B acquisition of Nokia's phone business, Microsoft announced it will layoff 7,800 mostly from that business and write off the acquisition for $7.6B. Among those let go will be Stephen Elop who is the former CEO of Nokia and a former executive of Microsoft. Many believe Elop was placed at Nokia to undermine their business so that Microsoft could buy it for a cheaper price. Even with the acquisition, Microsoft's share of the phone market did not increase significantly and lags behind Android and Apple.
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Submission + - Microsoft to sell Bing Maps, advertising sections->

UnknowingFool writes: Microsoft has announced that they will sell some Bing Maps technology to Uber and their advertising business to AOL. About 1300 employees are expected to be offered positions in their new companies. CEO Nadella said previously that there would be "tough choices" to be made. Some outside analysts have said neither venture was very profitable for Microsoft and may have been unprofitable at times.
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Comment Re:Monster Business School (Score 1) 288

And how does fancy stuff last longer exactly?

Again I said better quality cables. In your own example, thicker gauge speaker cables will work better than thinner, cheaper speaker cables. But you will pay a little extra for it.

I've been using the same wires since the 70s. Some of it might crack eventually under sunlight, I suppose.

So you like having exposed wiring? Some people prefer not to have that.

I'd still rather replace said wires every 5 years than spend 30x the price on Monster's shit.

Again, I explicitly said better quality and specifically not Monster.

Comment Re:Monster Business School (Score 1) 288

Sound better is subjective. For analog cables, better quality cables help with noise and distortion. Note that I said "better quality" and not exclusively Monster cables. You can pay a little bit more for higher quality cables that have better shielding and better contacts and not pay the obscene Monster prices. In the long run the better cables will last longer.

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