Microsoft: Innovation key to PC profits

C|Net | at | by Mike

To revive flagging PC profits, the industry must focus on building improvements compelling enough to persuade customers to part with their money, Microsoft exhorted business partners Tuesday. "Innovation is the way to profit," said Jim Allchin, group vice president of Microsoft's platform group. "We haven't spent enough time...to get (customers) to take that next step, buy the next machine, buy the next peripheral, buy the next software."

Allchin gave the opening speech here at Microsoft's Windows Hardware Engineering Conference, or WinHEC, where the Redmond, Wash., software colossus propagates its agenda to the hardware designers on whom Microsoft depends. "We're all interdependent," Allchin said.