A picture of the new Microsoft, one transformed from a software factory into a maker of devices and online services, came into sharper focus on Thursday.The old Microsoft had an almost unmatched ability to chug out profits by selling software on discs to customers. The new Microsoft has an expanding portfolio of hardware products with decidedly lower margins.
http://www.nytimes.com/2014/01/24/technology/holiday-sales-help-push-profit-up-at-microsoft.html