Microsoft Still Making More $$$ Than Apple

Apple on Tuesday reported earnings of $15.7 billion and a net quarterly profit of $3.25 billion or $3.51 per diluted share. With successful launches of both the iPad and iPhone 4, Apple was pretty pleased with its quarterly report for the third quarter of its fiscal year, but was it enough to beat long-time rival, Microsoft?

In the run up to Microsoft's earnings call, which took place yesterday, there was speculation that this could be the first time Apple actually made more money than Microsoft. However, the Redmond-based company has since revealed revenues of $16.04 billion – which is ahead of estimates from Wall Street – and a net profit of $4.52 billion (a 48 percent increase over last year), or $0.51 per share per diluted share.

Microsoft also revealed that it has sold 175 million Windows 7 licenses and 1.5 million Xboxes. The company reported an Xbox Live subscriber base of more than 25 million.

It's certainly a different picture to the one painted last year, when Microsoft reported its first annual sales decline in company history. However, not every department is making boatloads of money. FastCompany reports that "Online services," (Bing, Bing Maps, etc.) was the only major sector of Microsoft to lose money, but things aren't all bad there, either as Microsoft reports Bing growth has been up for 13 consecutive months.

Because this was Microsoft's fourth fiscal year quarter, Redmond also released numbers for its fiscal year ended June 30, 2010. For FY2010, the company reported revenue of $62.48 billion, a 7 percent increase from the prior year. Operating income, net income and diluted earnings per share for the year were $24.10 billion, $18.76 billion and $2.10, which represented increases of 18 percent, 29 percent and 30 percent, respectively.

Read Microsoft's official statement here.

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    Top Comments
  • scione
    I wonder how much google made this year...?
    25
  • atdhe
    Win 7 has really saved MS here, otherwise Apple would have easily overtaken MS, but that become reality in the near future considering how things are going with Apple... their fan base is just crazy...
    25
  • tipoo
    tokenzWe will see what apples next quarter is like when they have to factor in 3million cases that they have to give away.


    I'm sure the profit on each iPhone 4 is more than the 10 cents it costs to make a rubber case.
    16
  • Other Comments
  • plznote
    Oh, well i hate both companies
    3
  • fayzaan
    Respect!!! W00t Windows 7 is awesome, something that MS shoulda done in the first place for Vista. What I dont like is the fact that those who purchased vista got no upgrade or special deal for 7 :( I hate vista, slow and laggy n stuff. If MS offers me a nice cheap upgrade from vista to 7 ill take it. And I bought Vista like 8/9 months before 7's release
    16
  • atdhe
    Win 7 has really saved MS here, otherwise Apple would have easily overtaken MS, but that become reality in the near future considering how things are going with Apple... their fan base is just crazy...
    25