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Microsoft reports quarterly revenues, earnings below Apple

post #1 of 143
Thread Starter 
Apple's revenues and net earnings for the first calendar quarter of 2011 both beat the reported sales and profits of its rival Microsoft for the first time in recent history.

Over the last three quarters, Microsoft has posted less revenue but greater profits on its software-oriented businesses than Apple.

However, in the most recent quarter Microsoft has posted total revenues of $16.428 billion, compared to Apple's reported revenues of $24.67 billion, and net income of $5.232 billion compared to Apple's net profit of $5.99 billion.

Microsoft noted an increase in revenues over the year ago quarter of 13 percent, jumping from $14.5 billion to $16.4. In contrast, Apple's revenues were up 82.7 percent from $13.5 billion in the first calendar quarter of 2010.

Microsoft's net profits were up 30 percent from $4 billion a year ago, while Apple's profits were up 95 percent from just over $3 billion in the year ago quarter.

We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Peter Klein, Microsoft's chief financial officer said in a statement. "Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."

Apple pulled into the lead ahead of Microsoft on strong sales of Macs (up 28 percent) and iPhones (up 113 percent). At Microsoft, its Business Division (responsible for Office sales) posted revenue growth of of 21 percent, while its Server and Tools group posted revenue gains of 11 percent.



Microsoft's strongest growth came from its hardware oriented Entertainment & Devices Division, which sells the Xbox 360 and its new Kinect motion controller peripheral, sales of which helped the formerly beleaguered group to post gains of 60 percent over the previous year.

The company noted "Windows 7 remains the fastest selling operating system in history with 350 million licenses sold," but did not draw attention in its press release to the fact that the company's Windows and Windows Live Division, which sells Windows, saw its revenues fall from the previous year ago quarter, from $4.65 billion to this year's reported $4.445 billion.

PC sales have been hit hard by the release of Apple's iPad, which has effectively erased a significant portion of the demand for general purpose PCs and therefore nullified the need for Windows among a key portion of the new hardware being bought by consumers and businesses in the Fortune 500.
post #2 of 143
I recommend they shut down the company and return the money to investors.

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #3 of 143
Seconded

But interestingly.... the ratio of gross to net is in MS favor by a long shot. I thought Apple was supposed to be the high margin money grubbing villain that everyone loves to complain about?? Maybe it's an accounting thing.........
post #4 of 143
Does anyone, other than some rabid (http://en.wikipedia.org/wiki/Rabies) fanboys, care about this anymore?
post #5 of 143
Why should I care about MSFT?
post #6 of 143
Quote:
Originally Posted by skiracer1987 View Post

Seconded

But interestingly.... the ratio of gross to net is in MS favor by a long shot. I thought Apple was supposed to be the high margin money grubbing villain that everyone loves to complain about?? Maybe it's an accounting thing.........

Hardware/software is more expensive than just software, especially when all you do is change the name and ship it again.

Life is too short to drink bad coffee.

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post #7 of 143
happy day
post #8 of 143
Just goes to show who is KING!
post #9 of 143
Looks to me like apple profited more, not less...
5.2<5.9
post #10 of 143
It's amazing that just two years ago, Microsoft's earnings were twice that of Apple's. When Apple passed Microsoft in terms of Market Cap, everyone was saying that it was just that Apple was over valued. When Apple ended up getting higher earnings, people said that Apple had a long way to go before they could catch up in profit.

That day is now.

And wait until they see the awesome power of the fully operational data center!!!

Future milestones:
Apple has enough cash to buy Microsoft.

OS X market share is higher than Windows.

The day I go to work somewhere and I'm just automatically given a Mac. I say, "wow, I remember when we were forced to use Windows" and the IT kid says, "What are Windows?"
post #11 of 143
Quote:
Originally Posted by AdonisSMU View Post

Why should I care about MSFT?

Hey, they make nice keyboards.

post #12 of 143
Quote:
Originally Posted by cvaldes1831 View Post

Hey, they make nice keyboards.


And great mice.
I rue the day I'll not be able to buy a basic two-button wheel mouse from Microsoft for my Mac. Best mouse on the planet.
post #13 of 143
I'm convinced Steve Jobs' keyboard has a "So Suck It" button on it.
post #14 of 143
It's hard to overstate how amazing Apple's resurgence has been.
post #15 of 143
Steve Jobs should send Mr. Gates a thank you note for that 400 million dollar loan
post #16 of 143
Quote:
Originally Posted by davebarnes View Post

Does anyone, other than some rapid fanboys, care about this anymore?

Of course we care! I'm not a "rapid fanboy" by any means but it is fun to see the rich and powerful proven wrong. Steve Ballmer, big boss at Microsoft, has dismissed Apple's endeavours in the past as "rounding errors" - talking about Safari uptake or declared that iPhone would never take significant market share because of its cost. It's nice for us, the less rich and less powerful to see how wrong those in positions such as Ballmer's can be. The Germans have a good word for it - "Schadenfreude".
post #17 of 143
Quote:
Originally Posted by rhyde View Post

And great mice.
I rue the day I'll not be able to buy a basic two-button wheel mouse from Microsoft for my Mac. Best mouse on the planet.

If you like using a mouse made by a company (KYE) that is accused of subjecting its employees to illegal and even inhumane working conditions.

Life is too short to drink bad coffee.

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post #18 of 143
Quote:
Originally Posted by davebarnes View Post

Does anyone, other than some rapid fanboys, care about this anymore?

It's like watching a train wreck: it's hard to look away.

To be fair, it's not entirely Balmer's fault that Microsoft's fortunes have come to this. It's partially Steve Jobs' fault, Google get's a little blame, and, to some extent, they are a victim of circumstances. But, he certainly hasn't helped. I'm surprised shareholders haven't demanded his head long before this.

With the right leadership, Microsoft could have a long happy life, following the example of IBM. But, with the current leadership, it's hard to say how far down the bottom will be.
post #19 of 143
Quote:
Originally Posted by Patranus View Post

Steve Jobs should send Mr. Gates a thank you note for that 400 million dollar loan

The loan was complete PR nonsense.

Apple had enough money in the bank. It didn't need a loan. However, what it did need, was to reassure its customers that MS would still be developing Office for the Mac. And what MS needed was to reassure anti-trust official that the Mac was still a viable competitor.

Both sides got the PR boost they needed, so it was a great mutual transaction.
post #20 of 143
Yes, and Microsoft stock was up .50 a share today, while Apple was down again at -$3.50 a share. Not sure what's going on with Apple stock, but its ridiculous. How can you have the earnings and innovation that this company has had over the past straight two quarters, and they are only a couple dollars over stock prices way back in January. Something is amiss. Although 'Boo Ya' Cramer says to "be patient", and remains a strong buy.
post #21 of 143
Quote:
Originally Posted by AdonisSMU View Post

Why should I care about MSFT?

Less competition means fatter, more sluggish Apple. Keep them on their toes, which is when they perform best!

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply
post #22 of 143
Quote:
Originally Posted by cvaldes1831 View Post

Hey, they make nice keyboards.

Correction: They make reasonably good "old-timey" style keyboards, (the type with the big clunky keys that have to travel a half inch to register a press), if you like that sort.

Even then you have to be a fan of those split in half, curved ones designed to banish the spectre of carpal tunnel to really get behind Microsoft's keyboards. (I say "spectre" because we now know that carpel tunnel was basically imaginary for the most part).
post #23 of 143
Quote:
Originally Posted by Patranus View Post

Steve Jobs should send Mr. Gates a thank you note for that 400 million dollar loan

Buying stock in a company is not a "loan."

But Microsoft had no choice, and Apple had no reason to send thank you notes, because otherwise Apple would have sued Microsoft over its egregious theft of QuickTime code and a variety of other legal issues that would have cost it hundreds of millions of dollars (without the ability to sell stock later at a profit).

Apple and Microsoft both benefitted from the arrangement, no need to pat Bill Gates on the back for covering his very wide open ass at the decree of Mr. Jobs.
post #24 of 143
Quote:
Originally Posted by cmvsm View Post

Yes, and Microsoft stock was up .50 a share today, while Apple was down again at -$3.50 a share. Not sure what's going on with Apple stock, but its ridiculous. How can you have the earnings and innovation that this company has had over the past straight two quarters, and they are only a couple dollars over stock prices way back in January. Something is amiss. Although 'Boo Ya' Cramer says to "be patient", and remains a strong buy.

if you ever hope to make sense of the stock market, and if you ever hope to make money, the first step on that road is ignoring the advice of career criminals like Cramer.

His entire business is based on stock manipulation. He uses his media profile to selectively release information so as to manipulate the prices of the stocks that he is interested in. He almost never tells the truth. He contradicts himself daily, and anyone who follows his advice is just a pawn in his manipulation game.

He's basically admitted all this himself several times in interviews.

It's kind of like that televangelist Benny Hinn where anyone can find bushels of information on what a fraud he is and how the whole act is just to make him money, yet he is still popular, still listened to, and worst of all, still given money. Hinn was "exposed" on a 60 minutes-type newsmagazine show at least five years ago but still packs them in to his meetings today.

Some people just deserve to lose their money.
post #25 of 143
Quote:
Originally Posted by davebarnes View Post

Does anyone, other than some rapid fanboys, care about this anymore?

Uh... 'rabid' is the word you're looking for.

But sure, it's interesting that Apple's revenues and profits are now ahead of Microsoft. Looks like the 'I'll license junk to everyone.' model actually isn't the better business model at the moment.
post #26 of 143
Quote:
Originally Posted by Prof. Peabody View Post

(I say "spectre" because we now know that carpel tunnel was basically imaginary for the most part).

Where do you get this crap? It is very real. I don't suffer from it, however, I can definitely see how some working conditions that I have seen in the corporate cubicle environments, with bad or broken chairs, incorrect monitor, keyboard, and mouse positions along with no training in how to avoid computer related physical stress could cause such issues.

I'm not saying that there weren't fake complaints but even with the ideal conditions that I have, after working all day with repetitive tasks like video editing where the on screen controls are really small and require very precise adjustment, click and dragging for long durations, my wrist gets very sore. I don't have to do that exact task everyday, but if I did, it could very easily become a problem.

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post #27 of 143
Quote:
Originally Posted by mstone View Post

If you like using a mouse made by a company (KYE) that is accused of subjecting its employees to illegal and even inhumane working conditions.

You can't make a great mouse without breaking a few workers.
post #28 of 143
Quote:
Originally Posted by Patranus View Post

Steve Jobs should send Mr. Gates a thank you note for that 400 million dollar loan

It was actually 150 million, not 400, it didn't even come close to covering off the debt and was actually paid as compensation for the "look and feel" lawsuit and to make it appear that Apple was a company still worth investing in.

In other words the money wasn't materially relevant to Apple's financial picture at the time nor responsible in any way for their subsequent success. It was part of a deal that was essentially a confidence boosting gesture in return for Apple dropping the lawsuit.

Gates felt comfortable doing it because it made him look like a big man (he always likes that), and at the same time he was pretty sure (as was most everyone in the business back then), that Apple was going to fail anyway. It was a win-win for Microsoft at the time, but I bet they regret it now.
post #29 of 143
Quote:
Originally Posted by mrstep View Post

You can't make a great mouse without breaking a few workers.

I prefer Logitech

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post #30 of 143
Quote:
Originally Posted by mrstep View Post

You can't make a great mouse without breaking a few workers.

I resent the implication.
post #31 of 143
Microsoft is still doing very well. They're making the best products they ever have done, such as:

- Zune desktop software
- Zune hardware and mobile software
- Windows Phone 7
- Windows 7
- Office 2010
- Office 2011 for Mac
- Xbox 360
- Xbox Live

All great products and deserve to be class leaders if they are not already. I can't think of another company (including Apple) that has put out such a fantastic range of very good products. I'm very pleased with all of my recent purchases from Microsoft.

Quote:
Originally Posted by anonymouse View Post

It's like watching a train wreck: it's hard to look away.

To be fair, it's not entirely Balmer's fault that Microsoft's fortunes have come to this. It's partially Steve Jobs' fault, Google get's a little blame, and, to some extent, they are a victim of circumstances. But, he certainly hasn't helped. I'm surprised shareholders haven't demanded his head long before this.

With the right leadership, Microsoft could have a long happy life, following the example of IBM. But, with the current leadership, it's hard to say how far down the bottom will be.

Huh? The revenue and profit is a huge rise on last year and also stands as a record for this period in any year the company has operated. Of course, if Apple makes more, Microsoft must have failed
post #32 of 143
Quote:
Originally Posted by mstone View Post

Where do you get this crap? It is very real. I don't suffer from it, however, I can definitely see how some working conditions that I have seen in the corporate cubicle environments, with bad or broken chairs, incorrect monitor, keyboard, and mouse positions along with no training in how to avoid computer related physical stress could cause such issues.

I'm not saying that there weren't fake complaints but even with the ideal conditions that I have, after working all day with repetitive tasks like video editing where the on screen controls are really small and require very precise adjustment, click and dragging for long durations, my wrist gets very sore. I don't have to do that exact task everyday, but if I did, it could very easily become a problem.

it's true, look it up.

RSI is a real thing, but the solution is basically not doing so much of whatever the repetitive thing is that causes the pain. Carpal Tunnel syndrome on the other hand, basically doesn't exist anymore and was a dubious proposition even at the time it was being heavily promoted.

Anyone who's been around computers long enough knows this instinctively because at the time it was being promoted so heavily, almost everyone had it, but nowadays, no one has it at all. I distinctly remember buying bushels and bushels of those silly spilt keyboards and wrist thingies and pressure wraps for large numbers of our employees and I remember setting them up on people's desks. I remember the lawsuits, the sick leaves and the union grievances over it. I remember reading the tech press talking about how we were all doomed and that there simply "wasn't an answer" for carpal tunnel. There were people talking about alternative interfaces simply because they thought the "death of the keyboard" was just around the corner.

Now here we are years later and maybe two people out of a thousand even use those silly things and I haven't even heard of anyone taking sick leave for such a thing for at least five years.

Lots of illnesses even ones that require surgery or ones that eventually kill you, turn out to be imaginary, it's hardly unusual. It doesn't make them any less painful, but it does make them "not real."
post #33 of 143
Quote:
Originally Posted by Patranus View Post

Steve Jobs should send Mr. Gates a thank you note for that 400 million dollar loan

You mean 400 million pay off to quietly settle the patent suits Apple planned on bringing. They were more than willing to settle because they thought there was no way Apple would recover.
post #34 of 143
Quote:
Originally Posted by neiltc13 View Post

... Huh? The revenue and profit is a huge rise on last year and also stands as a record for this period in any year the company has operated. Of course, if Apple makes more thna Microsoft must have failed

IBM makes more money than they used to, too, but they no longer rule the tech world. Microsoft may continue making lots of money for a long time, but they are no longer any sort of force in the industry.
post #35 of 143
Market Capitalization - check

Revenue - check

Profits - check

Remind me once again who won the PC wars... if we count the iPod Touch, iPhone, iPad as "PCs".
post #36 of 143
Quote:
Originally Posted by Prof. Peabody View Post

it's true, look it up.

RSI is a real thing, but the solution is basically not doing so much of whatever the repetitive thing is that causes the pain. Carpal Tunnel syndrome on the other hand, basically doesn't exist anymore and was a dubious proposition even at the time it was being heavily promoted.

...

Lots of illnesses even ones that require surgery or ones that eventually kill you, turn out to be imaginary, it's hardly unusual. It doesn't make them any less painful, but it does make them "not real."

Ok I looked it up, but maybe it would be better if you pointed me to some links to support your position because when I Googled carpal tunnel, the whole first page of results was full of government and medical universities and hospitals all describing the painful symptoms and causes of the syndrome.

Life is too short to drink bad coffee.

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post #37 of 143
Right. This is the company that killed the Courier and went back to the only play they know: "Windows on tablets". Good to see they're moving in the right direction: backwards.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #38 of 143
Quote:
Originally Posted by neiltc13 View Post

Microsoft is still doing very well. They're making the best products they ever have done, such as:

Of course, if Apple makes more, Microsoft must have failed

You and your ilk have been portraying Apple as a failed company for years for that very reason. Now that the shoe is on the other foot you're upset?
post #39 of 143
Quote:
Originally Posted by NotScott View Post

I'm convinced Steve Jobs' keyboard has a "So Suck It" button on it.

Yup. Right next to his "Hey, it's not a big deal" button. ;-)
No Matte == No Sale :-(
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No Matte == No Sale :-(
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post #40 of 143
Quote:
Originally Posted by skiracer1987 View Post

Seconded

But interestingly.... the ratio of gross to net is in MS favor by a long shot. I thought Apple was supposed to be the high margin money grubbing villain that everyone loves to complain about?? Maybe it's an accounting thing.........

Every three years you hang some new curtains on the same old windows, every computer that is not a Mac needs its (sorry Linix hard to get a PC without Windows shipped on it) and then copy the software onto a million CD's and make a killing. Not the same thing as developing, merchandising new products each quarter and throw in a product platform that didn't exist the prior year (iPad).
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