When Apple passed Microsoft in market cap this past May, the Microsoft fanboys were out in full force. “This means nothing.” “Microsoft still makes so much more money than Apple.” “Look at the revenues.” Okay, let’s look at the revenues.
Microsoft just posted their earnings for last quarter. The result? $16.2 billion in revenue. A very strong number, easily beating what the Street was projecting. But just 10 days ago, Apple posted their revenues for this past quarter. The result there? $20.34 billion. Yep.
During the last round of earnings results in July, some people had been predicting that Apple would pass Microsoft in revenue (though, for the record, I wasn’t so sure). But sure enough, Microsoft stayed barely ahead of Apple by about $700 million. But as we noted at the time:
It seems quite likely that next quarter Apple will surpass Microsoft in revenue. Assuming that iPhone 4 sales are huge and that the iPad continues to grow, Apple’s momentum in revenue is simply too great for Microsoft to keep up with. Apple may or may not hit $20 billion in revenues next quarter (they’re projecting $18 billion, but they always low-ball that number so they can beat it).
And here we go. Not only did Apple hit that $20 billion revenue quarter, Microsoft’s quarter-to-quarter total only went up slightly (around $200 million). And so Apple zoomed right by them.
Naturally, it’s important to note that Microsoft still has a lead in profit — $5.41 billion to $4.31 billion — but that’s because one is mainly a software maker (huge margins), while the other is mainly a hardware maker (lower margins). If this trend continues, that will change soon shortly as well. Remember, it’s the holiday quarter now.
Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Among the key offerings from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook Air) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod, the...
Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured. Microsoft is widely used by professionals worldwide and largely dominates the American corporate market. Additionally, the company has ventured into hardware with consumer products such as the Zune and...