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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

July 30, 2009 at 10:02 AM

Microsoft Financial Analyst Meeting today: Ballmer onstage

Brier Dudley and I are at the Microsoft Financial Analysts Meeting today in Redmond. Here‘s the Web cast if you want to check it out yourself.

Microsoft Chief Executive Steve Ballmer is talking now. He just talked about the Yahoo partnership announced yesterday — he talked a lot about the upside for Yahoo, whose share price dropped yesterday.

On Yahoo partnership:

“On Yahoo side, Yahoo gets 88 percent of the search revenue they have today. They have 0 percent COGS (cost of goods sold), ZERO percent COGS against 88 percent revenue and they have NO R&D (research and development) expense and no ongoing capex. It’s sort of like unbelievable. Did they sell their search business? No, they get to keep 88 percent of the revenue.”

Ad campaign against Apple:

Ballmer pulled up a chart of a survey in which they asked 18- to 24-year-olds whether Apple or Microsoft offers the best value and tracked it through the year when they began airing the new laptop-hunter ads. More of the people survey now believe Microsoft offers better value than Apple since the ads began running.

The next netbook:

Microsoft has been working with PC markers on a laptop called an ultrathin, a more expensive netbook that has more power and better screen but still uses low power.

“Why don’t we have a high performance lower power device? That comes this year. The new ultra thins will be like high end netbooks.”

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