Microsoft reports quarterly revenues, earnings below Apple
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.
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.
Comments
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.........
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.
5.2<5.9
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?"
Why should I care about MSFT?
Hey, they make nice keyboards.
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.
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".
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.
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.
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.
Why should I care about MSFT?
Less competition means fatter, more sluggish Apple. Keep them on their toes, which is when they perform best!