Apple earnings, profits, and cash embarrass Microsoft

Posted:
in General Discussion edited January 2014
While Microsoft executives like to talk about Apple as an insignificant company with less than 5% of the worldwide market share of all PCs and servers sold, the Mac maker now has more cash than Microsoft and earns more than half of its profits and over three fourths its revenues.



For the quarter ending in September, Microsoft released revenues of $15.06 billion, net profits of $4.37 billion, and a reserve of cash, cash equivalents, and short-term investments that added up to $20.7 billion.



Apple reported $7.9 billion in revenues and $1.14 billion in net profit, but those numbers don't include most of its iPhone business, which is hidden away in subscription accounting under GAAP rules. For that reason, Apple also released its real earnings: $11.68 billion in revenue and $2.44 billion in net profits. The company also reported a cash position of $24.5 billion.



Microsoft's quarterly revenues grew by 9%, compared to Apple's non-GAAP revenue increase of 75.1% year over year.
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Comments

  • Reply 1 of 121
    He who laughs last laughs best.
  • Reply 2 of 121
    zunxzunx Posts: 620member
    The day 25% of users know about the Mac, Microsoft and Windows will be history in three years.
  • Reply 3 of 121
    There might be some at MS who may think Apple is is insignificant, But who were the ones who just spent 300 to 500 Million for ads aimed directly at Apple? That does not sound like insignificant money to me to say nothing about the effort which went into producing them. Even as lackluster as they were. Mind you it may be I, who is wrong here -- money seems to be no object for MS. There are always more people who will buy products which "Sorta Work".

    All in all though just very sad.



    Please --- Attention !!! Apple no Jeers no Cheers just steady as she goes. The hard work, the lean times and the stick to-it- ness. is starting to pay off. Higher standards like cream always rise to the top.



    Just like milk and cream there is less cream than the less rich stuff.



    Respectively submitted Thank you
  • Reply 4 of 121
    Thats another one for the "told you so" pile



    Next milestone >Mkt Cap
  • Reply 5 of 121
    Quote:
    Originally Posted by zunx View Post


    The day 25% of users know about the Mac, Microsoft and Windows will be history in three years.



    I cannot say I agree even though I would like to . There shall always be a market for second rate. There may also be a chance it will always be larger, because many will settle for second best. Respectfully submitted.



    Thank you
  • Reply 6 of 121
    sandausandau Posts: 1,230member
    why jeer a solid American company that is posting profits?



    this article is silly.
  • Reply 7 of 121
    Don't forget Microsoft issued a $32 Billion dividend at the end of 2004.
  • Reply 8 of 121
    moochmooch Posts: 113member
    Quote:
    Originally Posted by zunx View Post


    The day 25% of users know about the Mac, Microsoft and Windows will be history in three years.



    not necessarily. even if everyone who could afford a mac wanted one, there will always be people that will need a cheaper (windows) PC.
  • Reply 9 of 121
    Quote:
    Originally Posted by sandau View Post


    why jeer a solid American company that is posting profits?



    this article is silly.



    Because they have stifled innovation, and slowed the progression of mankind since forever. I have no time for imitators whatsoever, profitable or not.

    Finally after a long fascinating and sometimes 'seat of ya pants' journey, innovation and raw talent is winning out and taking its rightful place.

    As I have said before on these forums, I have had much work of my own copied and imitated so I have a personal sympathy for Apple's position. Copying is easy, realizing dreams and staying one step ahead is hard work and often not so rewarding in profit. So to see profits exceed that of MSFT is quite a pleasure for me, and a victory for innovation itself.

    Also, many people thought I was a lunatic when I tried explaining the potential of OSX, and the benefits of having a proprietary OS tied to hardware as a business model of the future, that was ten years ago. Apparently it was only a matter of time until Apple withered and died, and total domination by MSFT was inevitable, and I was the lone dumbass for thinking the contrary



    So yeah thats my reason.
  • Reply 10 of 121
    seriously impressive news. time to buy more stock while we're in the tank.
  • Reply 11 of 121
    satchmosatchmo Posts: 2,699member
    How does this exactly 'embarrass' Microsoft?



    MS, might not be as powerful as before, but I wouldn't say 4.37 billion in net profits is anything to be ashamed of. A bit too editorial don't you think?
  • Reply 12 of 121
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by satchmo View Post


    How does this exactly 'embarrass' Microsoft?



    MS, might not be as powerful as before, but I wouldn't say 4.37 billion in net profits is anything to be ashamed of. A bit too editorial don't you think?



    This is an Apple-centric website, so the focus isn't unwarranted, but I agree that MS' profit is impressive, as well as their 9% gains over the same period last year despite their level of market saturation.
  • Reply 13 of 121
    This comparison is quite silly and contrived: bringing Apple's subscription revenue forward to the current quarter without doing the same for Microsoft's subscription revenue?
  • Reply 14 of 121
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by rickhuizinga View Post


    This comparison is quite silly and contrived: bringing Apple's subscription revenue forward to the current quarter without doing the same for Microsoft's subscription revenue?



    Looking at the non-GAAP is good to see how much revenue the company is actually taking in. Which MS products or services use GAAP accounting?
  • Reply 15 of 121
    satchmosatchmo Posts: 2,699member
    Quote:
    Originally Posted by solipsism View Post


    This is an Apple-centric website, so the focus isn't unwarranted, but I agree that MS' profit is impressive, as well as their 9% gains over the same period last year despite their level of market saturation.



    I'm well aware it's Apple-biased. That's why we're all here.

    But it's presuming Microsoft is red faced about Apple's success. They may very well be, but it's written to sound as if someone at MS has admitted they've underestimated Apple.



    Perhaps a more appropriate heading could be:

    Apple cash surpasses; earnings, profits, approach Microsoft.
  • Reply 16 of 121
    Quote:
    Originally Posted by rickhuizinga View Post


    This comparison is quite silly and contrived: bringing Apple's subscription revenue forward to the current quarter without doing the same for Microsoft's subscription revenue?



    Do they have any of this revenue? I don't think so. Somebody on here know more than me?
  • Reply 17 of 121
    Quote:
    Originally Posted by satchmo View Post


    How does this exactly 'embarrass' Microsoft?



    Good point...as happy as I am to see Apple eat MS's lunch, the title is sensationalist and isn't backed up by anything. In fact, the whole article is just contrasting a few key metrics from their latest earnings. Something any schmoe off the street could do. Pretty shoddy work.
  • Reply 18 of 121
    Quote:
    Originally Posted by satchmo View Post


    but it's written to sound as if someone at MS has admitted they've underestimated Apple.



    I believe there has been numerous signs that this is indeed the case recently. The ad campaign is an admission in itself. And rattled they should be, else the sleeping dinosaur will become extinct pretty quick.
  • Reply 19 of 121
    adjeiadjei Posts: 738member
    Microsoft is irrelevant, they may be a big company but no one gives a damn about them and no one is scared of them like before, no innovation is coming out from Redmond, they have become boring.
  • Reply 20 of 121
    Quote:
    Originally Posted by satchmo View Post


    How does this exactly 'embarrass' Microsoft?



    MS, might not be as powerful as before, but I wouldn't say 4.37 billion in net profits is anything to be ashamed of. A bit too editorial don't you think?



    Yes, with articles like this one, AI puts at risk their credibility among the numerous sites that actually refer to AI for Apple coverage. I've seen many sites that refer to AI articles in their coverage. IMO, the more traditional tech reporting sites endanger their credibility also by relying on AI coverage, but this is the state of reportage these days. Rumors built on innuendo, colored by opinion.
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