Apple must wait another day to best Microsoft on earnings
After numerous analysts had predicted weakened income for Microsoft, the Windows maker surprised Wall Street Thursday by posting a quarterly profit of $6.63 billion, enough to stay ahead of Apple on earnings for the time being.
Apple did, however, best the Redmond, Wash., software giant in terms of revenue. Microsoft announced revenue of $19.95 billion for the December quarter, compared to Apple's record $26.74 billion in revenue.
High profit margins on its software offerings boosted Microsoft's revenue above analysts' expectations of $5.93 billion. The company also gained momentum through sales of its Kinect video camera accessory for the Xbox. According to Microsoft, 8 million Kinect sensors were sold in just 60 days.
Microsoft declined to give Windows Phone 7 sales figures during its earnings call, though the company had revealed earlier this week that two million WP7 devices had been shipped to carriers by the end of December.
Analysts generally saw Microsoft's results as a mixed bag. "Outstanding numbers when you take a first look at it, but when you delve into them, Windows missed expectations by $300 million," Reuters reported Brendan Barnicle, analyst at Pacific Crest Securities, as saying.
"Kinect represents the most legitimate opportunity we have seen for the Xbox to drive some profit. I do think there is a meaningful catalyst there," said Motley Fool senior analyst Tim Beyers. "I guess the nut of it is, Microsoft is starting to do something better and they are not tripping on themselves, and that counts for something."
Slowing PC sales and the tablet boom, of which Apple holds the lion's share, have left Microsoft investors cautious. Shares of Microsoft stock closed the day down .45 percent before dipping further in after-hours trading. Over the past 12 months, Microsoft shares have shed about 3 percent.
Microsoft itself admitted Thursday that tablets like Apple's iPad has created a "little bit of a drag" on the market.
Long-time rival Apple made headlines last year when it passed up Microsoft to become the world's largest tech company in terms of market capitalization. The Mac maker went on to become the world's second largest company, eventually soaring past the $300 billion mark.
As of Thursday, Microsoft's market cap was $248 billion, compared to Apple's $316 billion.
Apple did, however, best the Redmond, Wash., software giant in terms of revenue. Microsoft announced revenue of $19.95 billion for the December quarter, compared to Apple's record $26.74 billion in revenue.
High profit margins on its software offerings boosted Microsoft's revenue above analysts' expectations of $5.93 billion. The company also gained momentum through sales of its Kinect video camera accessory for the Xbox. According to Microsoft, 8 million Kinect sensors were sold in just 60 days.
Microsoft declined to give Windows Phone 7 sales figures during its earnings call, though the company had revealed earlier this week that two million WP7 devices had been shipped to carriers by the end of December.
Analysts generally saw Microsoft's results as a mixed bag. "Outstanding numbers when you take a first look at it, but when you delve into them, Windows missed expectations by $300 million," Reuters reported Brendan Barnicle, analyst at Pacific Crest Securities, as saying.
"Kinect represents the most legitimate opportunity we have seen for the Xbox to drive some profit. I do think there is a meaningful catalyst there," said Motley Fool senior analyst Tim Beyers. "I guess the nut of it is, Microsoft is starting to do something better and they are not tripping on themselves, and that counts for something."
Slowing PC sales and the tablet boom, of which Apple holds the lion's share, have left Microsoft investors cautious. Shares of Microsoft stock closed the day down .45 percent before dipping further in after-hours trading. Over the past 12 months, Microsoft shares have shed about 3 percent.
Microsoft itself admitted Thursday that tablets like Apple's iPad has created a "little bit of a drag" on the market.
Long-time rival Apple made headlines last year when it passed up Microsoft to become the world's largest tech company in terms of market capitalization. The Mac maker went on to become the world's second largest company, eventually soaring past the $300 billion mark.
As of Thursday, Microsoft's market cap was $248 billion, compared to Apple's $316 billion.
Comments
http://www.youtube.com/watch?v=R1-zBIIvl5g
"I guess the nut of it is, Microsoft is starting to do something better and they are not tripping on themselves, and that counts for something."
Why does Microsoft sound like your retarded cousin?
The sad part is, is that these results act as an impetus for MS to keep things business as usual, which will, of course, prove quite detrimental to them in the long term.
This Apple versus Microsoft thing is immature. 5 Billion, 7 Billion, who gives a shit? It's like saying Apple is behind Exxon. It doesn't matter. It's not about the money.
For once I agree. It's almost as if 60% of the articles here have to have an "us versus them" slant. And "them" automatically means evil/bad/inferior/crap.
I love my Apple gear, but that doesn't mean that I have to take every opportunity to piss on everyone else.
This Apple versus Microsoft thing is immature. 5 Billion, 7 Billion, who gives a shit? It's like saying Apple is behind Exxon. It doesn't matter. It's not about the money.
Things must be different in Ireland because in the US money does matter to the markets. And since they are both in the tech sector, the comparison is reasonable (unlike comparing Apple to an energy company).
This Apple versus Microsoft thing is immature. 5 Billion, 7 Billion, who gives a shit? It's like saying Apple is behind Exxon. It doesn't matter. It's not about the money.
Exactly! Was DED too in shock to write this hit piece?
Things must be different in Ireland because in the US money does matter to the markets. And since they are both in the tech sector, the comparison is reasonable (unlike comparing Apple to an energy company).
Well the odd thing is that if you do a search on the word "profit" here, you will find a million threads stating that ALL that matters is profit, nothing else is important.
Apple is the best computer maker because they have the most profits for computer makers
Apple is the best cell phone maker because they have the most profits for cell phone makers
etc.
Except, that is, when Apple is not the most profitable.
Well the odd thing is that if you do a search on the word "profit" here, you will find a million threads stating that ALL that matters is profit, nothing else is important.
Apple is the best computer maker because they have the most profits for computer makers
Apple is the best cell phone maker because they have the most profits for cell phone makers
etc.
Except, that is, when Apple is not the most profitable.
Stop getting tangled in your own underwear.
Well the odd thing is that if you do a search on the word "profit" here, you will find a million threads stating that ALL that matters is profit, nothing else is important.
Apple is the best computer maker because they have the most profits for computer makers
Apple is the best cell phone maker because they have the most profits for cell phone makers
etc.
Except, that is, when Apple is not the most profitable.
People who make such claims are foolish.
But it is just as foolish to suggest that the numbers don't matter. In general, the bottom line is, indeed, the bottom line. But watch what happens when a company takes a hit on revenues. ANd not to minimize MS's performance, but their report does drive home the fact that making those software margins is close to printing money.
Exactly! Was DED too in shock to write this hit piece?
You need serious help with this! Or better yet why don't you start your very own blogsite where you you can gibber and spittle your unreasoned and irrational hatred of DED to your own continuing delight and futile sense of retribution for whatever slight you imagine he has caused you?
Do you stalk others in this same manner? Obsessive/compulsive behavior is very unbecoming.
People who make such claims are foolish.
But it is just as foolish to suggest that the numbers don't matter. In general, the bottom line is, indeed, the bottom line. But watch what happens when a company takes a hit on revenues. ANd not to minimize MS's performance, but their report does drive home the fact that making those software margins is close to printing money.
reductio ad absurdum. After all, simplicity best suits the simple-minded.
However, I knew that Microsoft's grasp on the world market was coming to an end when I saw the first Mac's enter into the US military's inventory. There is a def shift in the PC paradigm today.
Well the odd thing is that if you do a search on the word "profit" here, you will find a million threads stating that ALL that matters is profit, nothing else is important.
Apple is the best computer maker because they have the most profits for computer makers
Apple is the best cell phone maker because they have the most profits for cell phone makers
etc.
Except, that is, when Apple is not the most profitable.
I think you?re misunderstanding the term and usage.
Saying that the best product is the one from the company making the most profits is patently false. I doubt you?ll find any reasonable person posting that here. Maybe at MacRumors, Digg or Engadget... but not here.
Saying that for-profit companies base success on profit is correct. I am sure you?ll find many posts on this site stating that very thing.
This Apple versus Microsoft thing is immature. 5 Billion, 7 Billion, who gives a shit? It's like saying Apple is behind Exxon. It doesn't matter. It's not about the money.
I'd bet Ballmer and Jobs care. I think it is interesting to watch Apple's amazing comeback story. And I think it is important because many (myself included) believe Microsoft's billions were gained underhandedly, to say the least. So a little comeuppance is well deserved, I'd say.
reductio ad absurdum. After all, simplicity best suits the simple-minded.
We?re trying to have a serious conversation here so keep your Harry Potter spells to yourself.
Microsoft declined to give Windows Phone 7 sales figures during its earnings call, though the company had revealed earlier this week that two million WP7 devices had been shipped to carriers by the end of December.
I believe that's incorrect - although I didn't go back and check. My understanding was that Microsoft said that it sold 2 million Windows Phone 7 licenses to OEMs by the end of December. That doesn't mean that 2 million phones were shipped to carriers - there's some amount of time that must elapse between the time the OEM buys the MS Windows Phone 7 license and the time that the phone is assembled, packaged, and shipped. That means that the number of phones shipped to carriers must be less than 2 M - and the number in consumers' hands would be lower, still.
Well the odd thing is that if you do a search on the word "profit" here, you will find a million threads stating that ALL that matters is profit, nothing else is important.
Apple is the best computer maker because they have the most profits for computer makers
Apple is the best cell phone maker because they have the most profits for cell phone makers
etc.
Except, that is, when Apple is not the most profitable.
Please name a computer maker who makes more profit than Apple.
And name a phone manufacturer who makes more profit than Apple.
Hint: Microsoft makes neither computers nor smart phones.
As long as nobody can deliver a "better" and competitive Office product (to my surprise), M$ doesn't need to do anything to keep it running well. WP7, etc. are just like "hobby" to them.
I don't know about better, but OpenOffice is competitive. 95% of the commonly used features and 99% compatibility for free (I don't know the percentages, but they're pretty high).
The problem is not that OpenOffice is uncompetitive, but that most people buy Microsoft Office by default- businesses in particular.
This Apple versus Microsoft thing is immature. 5 Billion, 7 Billion, who gives a shit? It's like saying Apple is behind Exxon. It doesn't matter. It's not about the money.
Agree. Very childish. I just want a nice computer.