Last quarter, Microsoft reached an epic milestone: $1 trillion in cumulative lifetime revenue. The surprising part is that the company said nothing about this achievement — probably celebrating this success behind closed doors instead.
Apple reached the $1 trillion milestone back in 2015, fueled by the success of iPhone sales. Reaching this achievement should help Microsoft’s morale in regards to its phone revenue: unlike Apple’s iPhone, Windows Phone revenue dropped 46% last quarter, prolonging the downwards phone sales spiral that has haunted Microsoft for years.
Speaking of profit, at the beginning of this year, Microsoft was involved in an offshore revenue hiding scandal. An investigation showed that Microsoft held 41% of its all-time earnings in offshore bank accounts. This was not a very good thing for the company’s image. However, what Microsoft did was not at all illegal, simply taking advantage of legal loopholes to dodge some taxes. The problem was that this came as a shock for people because they trusted Microsoft’s good intent.
Despite this scandal, Windows remains the most popular operating system in the world with Windows 10 reaching 300 million active users this month. Users also heavily support the company’s desire to improve via the Insiders Program, with more than 7 million active Insiders providing Microsoft with useful feedback.
It will be interesting to see if Microsoft continues to send its profit to offshore accounts given public reaction to the latest scandal. By giving up this strategy, the company would prove its commitment to the American society’s wellbeing and could restore the public’s trust in it. On the other hand, hundred of millions of dollars would slip between its shareholders’ hands. Will Microsoft give in to greed or follow the rules?
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