Microsoft's 10-K Filing

The most recent 10-K for Microsoft says the following:

"A competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones and digital music players."

Gee, I wonder who they were talking about. (Hint, it is not a computer company.) (At least to some people.)

The risk they mention as the first is "We Face Intense Competition." But they also worry about competing in an increasingly open source model world. That may result in inability to protect intellectual property and at the same time being in jeopardy of smaller companies challenging their code. That leads the company to sell two tiers of their products, a loss leader and a full function product. (Priced differently)

As 10-Ks go it is an interesting read (see it on this link).