Apple revenues could catch Microsoft by 2010

Posted:
in General Discussion edited January 2014
Apple Inc. has a decent shot of outgrowing Microsoft Corp. within the next five years if it can keep churning out hit wonders, an extrapolation of revenue data from the two industry heavyweights has revealed.



An analysis at 10Layers points out that while both Microsoft and Apple have seen healthy revenue growth in the last 5 years, Apple is growing at a near exponential rate compared to Microsoft's linear path.



"Microsoft?s revenues have grown approximately 60 percent from just under $30B in 2002 to over $44B in 2006," the report states. "However, while Microsoft has grown linearly for this period, Apple has accelerated with revenues of just under $6B in 2002 growing to just under $21B in 2006."



For Apple, that represents an impressive 250 percent revenue growth.



In an attempt to predict the future growth rates of both firms, 10Layers compiled an extrapolation of Microsoft?s linear and Apple's almost exponential revenue growth from the past twelve months.



The pure extrapolation shows that Apple could catch up with Microsoft as early as 2010 or 2011, given the current growth rates.







"Of course, an extrapolation is just an attempt at predicting the future based on the past," the report states. "It is clear however, that it is likely that Apple will give Microsoft a run for their money."
«134

Comments

  • Reply 1 of 67
    brussellbrussell Posts: 9,812member
    Shawn Wu will clear this all up.
  • Reply 2 of 67
    wircwirc Posts: 302member
    The last line says it all. This is not some natural phenomenon that can be analyzed like that. Things change and profits vary based on markets and interests, not on repeated behavior. Extrapolating a regression is just stupid.



    If you pulled that data back another 10 years, you would have a totally different curve that would make even less sense. What is the variable that represents Steve Jobs?
  • Reply 3 of 67
    An excellent indicator is that I don't believe there was a single OS release in the entire swath of their data for MS. Obviously, OS releases are something you'd expect to effect their revenues one way or the other, and make the curve "more interesting." I'm going to go out on a limb here and say these folks are imbeciles that should on no account be allowed to use a ruler or the word exponential again.
  • Reply 4 of 67
    100% BS. We COULD have flying cars by 2010, but we won't. To talk about the future and say what could happen is poor journalism.
  • Reply 5 of 67
    Of course its B.S. but the really interesting item in this article to me is the current state of things. With only 2-5% market share in the Computer world (I never know which number to actually use) Apple revenues are already 50% that of Microsoft. To me that shoots down the 'Apple has to increase market share' argument.



    (Hold's arms over head to ward off flying rebuttles )
  • Reply 6 of 67
    boogabooga Posts: 1,082member
    Apple's market share is 80% in the iPod world, without which that curve would look dramatically different. Apple needs to maintain a reasonable market share in order to keep top-shelf software titles available on the platform. One could argue based on the software availability that their market share has been just above that line recently, and needs to stay there or grow to keep the platform viable.
  • Reply 7 of 67
    chuckerchucker Posts: 5,089member
    Quote:
    Originally Posted by Booga View Post


    Apple's market share is 80% in the iPod world, without which that curve would look dramatically different.



    Only in the most recent quarter has the iPod had the single greatest revenue share. Before that, it was always still Mac hardware. The next quarter will probably be stronger for Macs than for iPods again.
  • Reply 8 of 67
    yes Apple could overtake Microsoft profits if Apple keep on charging for every little things like wifi firmware and bootcamp
  • Reply 9 of 67
    Utter nonsense. Where's monkey-boy Ballmer....
  • Reply 11 of 67
    sdw2001sdw2001 Posts: 18,016member
    I don't think the prediction is all that far fetched. Granted, things could change easily, but what the article is saying is that if things continue as they are now, it will happen.



    With the iphone, Mactel and continued iPod success, Apple could continue it's growth. Microsoft seems to have a hit a wall. How many versions of Office and Windows can consumers and corporations buy?
  • Reply 12 of 67
    I don't find any weight in this argument, but just for the sake of fun:



    This would coincide quite nicely with the end of the Mayan calendar! 2012 marks the end of the Microsoft regime.
  • Reply 13 of 67
    Quote:
    Originally Posted by Highwayman View Post


    This sums it up.



    http://www.geekculture.com/joyoftech...hives/915.html



    Lepoard - $130, Vista - $100-$680, http://www.geekculture.com/joyoftech...hives/915.html Priceless!!!!
  • Reply 14 of 67
    louzerlouzer Posts: 1,054member
    Quote:
    Originally Posted by physguy View Post


    Of course its B.S. but the really interesting item in this article to me is the current state of things. With only 2-5% market share in the Computer world (I never know which number to actually use) Apple revenues are already 50% that of Microsoft. To me that shoots down the 'Apple has to increase market share' argument.



    (Hold's arms over head to ward off flying rebuttles )



    A couple of problems with your comparison. Apple's big ticket item that has really pushed their revenues in the past 2-3 years is the iPod, not their OS or computers or whatever. Second, Apple is a hardware company, and, as such, make a ton more revenue/money on each sale then Microsoft, who's 95% a software company. Take out the computer revenues, and replace it with an estimate of revenues for the OS itself, and you'd see there really is a discrepency.



    Of course, all that really needs to happen is for the masses to realize that the iPod is just an overpriced, out-of-style, piece of bling, and decide to move on to the next big thing (whatever that may be - and, no, its not going to be the iPhone). Then your talking one tanking stock...
  • Reply 15 of 67
    I'm as big an Apple fan as they come, but that sort of analysis is just patently wrong. An X% growth rate achieved at a base of $5b is simply not transferrable to a base of, say $40b. Sometimes this is referred to as "the law of big numbers" or from the bottom side of the sheet as "the law of diminishing returns". It's why Dell's price has been so stagnant (among other reasons, of course)... they just have to work so very hard to achieve any measurable growth as a percent of their revenue, because their denominator is so considerable. Suffice to say, it will be an immense challenge for Apple to achieve that sort of scale in the time frame they project. But hey... don't get me wrong.... I'd love for Apple to make me eat crow
  • Reply 16 of 67
    irelandireland Posts: 17,798member
    I think this is true. Why? I don't know, I just want to believe.
  • Reply 17 of 67
    Yeah, I don't think this was meant a "serious journalism" or some actual prediction on which to place your bets. But, it's an interesting idea and caused me to stop and think. While 2010 may seem too improbable, it showed me that Apple "catching" Microsoft is not TOO unreasonable.



    But, yeah, it would be nice to see this idea again after Vista (and Leopard?) gets released. As much as we Mac fans love to jeer at it, the majority of computer owners don't really even care about OS X and will just upgrade what they've got.
  • Reply 18 of 67
    Quote:
    Originally Posted by BlackSummerNight View Post


    100% BS. We COULD have flying cars by 2010, but we won't. To talk about the future and say what could happen is poor journalism.



    For your information, the first flying car was prototyped around the close of 2009. That's all I can say without messing up your future.
  • Reply 19 of 67
    As someone else mentioned or several others mentioned this is B.S. first of all they are using 3 years of M$ data versus 4 years of Apple data. I particularly love the reference to how M$ was "just over" 44 billion and Apple was "just under" 21 billion in revenues. Honestly I'd love to have the last laugh in the Apple debate too but at this point this is just wet dreams.
  • Reply 20 of 67
    mkanemkane Posts: 41member
    Keep smoking that happy weed.....



    Why even post junk like this?
Sign In or Register to comment.