Just about a year ago, when Apple passed Microsoft in market cap, the Redmond loyalists were out in full force: that means nothing — look at the revenues! When Apple passed Microsoft in revenues last October, it was: who cares — look at the profits! We were looking, and we projected that this quarter just ended would be the one in which Apple passed Microsoft in that regard too.
Sure enough, they have. Easily.
Microsoft has just announced their Q3 2011 results. The numbers appear to be good, beating analysts’ expectations. But with net income now at $5.23 billion, Microsoft now comes in well behind Apple, which had a net income of $5.99 billion last quarter.
Last October, despite Apple pulling ahead in revenue, the profit gap was about $1.1 billion in Microsoft’s favor. Last quarter, that gap was down to roughly a $600 million. And now, rather remarkable, it’s over $700 million in the other direction — a $1.3 billion swing in just one quarter. And you can probably expect that trend to continue.
Meanwhile, on the revenue side of things, Apple now holds a roughly $8 billion advantage — $24.6 billion to $16.43 billion. And in market cap, Apple’s advantage is just about $100 billion — $318.45 billion to $224.43 billion.
Times change.
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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...
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